RUTHERFORD, N.J., Oct 31, 2002 (BUSINESS WIRE) -- AXS-One Inc. (AMEX: AXO), a leading provider of e-business solutions, today announced revenues of $9.3 million, with net income of $.6 million, or $.02 per diluted share for the quarter ended September 30, 2002 compared to revenue of $9.8 million and net income of $.5 million, or $.02 per diluted share in the corresponding period last year.

For the first nine months ended September 30, 2002 the Company reported $27.8 million in revenues, generating $1.2 million in net income, or $.05 per diluted share, compared to $31.6 million in revenues, and a net loss of $(5.5) million, or $(.22) per diluted share for the corresponding period last year.

Operating income for the quarter increased slightly to $.8 million from the $.7 million recorded last year, but for the first nine months of this year the Company recorded $1.8 million in operating income, representing a positive swing of $6.8 million when compared to the year ago period.

Revenues from the Central and Eastern Europe subsidiary sold in September 2001 which have been included in the Company's operating results through the date of sale were $0.3 million and $1.4 million for the three and nine months ended September 30, 2001. Net losses for the sold subsidiary were $(0.2) million and $(0.3) million for the three and nine months ended September 30, 2001.

The third quarter results represented AXS-One's fifth consecutive quarter of profitability. Although third quarter revenues were slightly lower than for the same period last year, the mix of revenues and continued cost containment has allowed us to increase our operating income. For the quarter, 88% of our revenues was comprised of services revenues, providing a solid foundation for the company to continue focusing on sales and marketing efforts for our new suite of products. The Company's corporate performance measurement and spend management solutions continue to be adopted within the client base and are a driving force for new business.

"In spite of a less than optimal economy, we have continued to perform well and demonstrate that our business model represents a sound operating strategy. We are well situated for both growth and maintenance of our high levels of client satisfaction," commented AXS-One Chief Executive Officer John Rade. "Consulting revenue has remained fairly consistent over the last four quarters as our customers continue to implement AXS-One's technology within their organizations."

Mr. Rade continued, "Several clients have also decided to standardize on our solutions due to the low cost of ownership and robust solutions after evaluating competitive products. Add to this the fact that we believe we may be the only software vendor that actually has production clients who can be referenced for our web services architecture, and you can see where our competitive advantage lies - a proven, scalable technology."

"Already this fourth quarter, AXS-One has announced extensions to its compliance solution which helps clients address several regulatory requirements such as those outlined in SEC Rule 17a-4, as well as HIPAA, FDA, Electronic Commerce and Patriot Act, continued acceptance of its collaborative commerce solutions and new capabilities within its services automation solutions," Mr. Rade went on to say.

    About AXS-One Inc.
            

This press release contains forward-looking statements. Such statements are only predictions and actual events or results may differ materially. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the company's documents and reports filed from time to time with the Securities and Exchange Commission.

AXS-One, e-Cellerator, AXS Desk, "AXS-One Collaboration FrameWorks," SMART and Tivity are trademarks of, and "Access Tomorrow Today," AXSPoint and TransAXS are registered trademarks of, AXS-One Inc., in the U.S. All other company and product names are trademarks or registered trademarks of their respective companies.

                             AXS-One Inc.
                 Consolidated Statements Of Operations
                 (In thousands, except per share data)
                              (Unaudited)
                                      Three Months      Nine Months
                                          Ended            Ended
                                      September 30,    September 30,
                                     ---------------  ---------------
                                       2001    2002     2001    2002
                                     ------- -------  ------- -------
Revenues:
License fees                         $   773 $ 1,030  $ 4,014 $ 2,954
Services                               8,874   8,196   27,168  24,542
Other-related parties                    174     101      416     290
                                     ------- -------  ------- -------
Total revenues                         9,821   9,327   31,598  27,786
                                     ------- -------  ------- -------
Operating expenses:
Cost of license fees                     316     393    1,057   1,095
Cost of services                       4,059   3,838   14,619  11,533
Sales and marketing                    1,502   1,379    7,763   4,815
Research and development               1,607   1,697    5,338   5,123
General and administrative             1,789   1,259    6,856   3,380
Restructuring and other costs, net      (166)      -      937       -
                                     ------- -------  ------- -------
Total operating expenses               9,107   8,566   36,570  25,946
                                     ------- -------  ------- -------
Operating income (loss)                  714     761   (4,972)  1,840
                                     ------- -------  ------- -------
Other income (expense):
Interest income                            4       8       99      31
Interest expense                        (151)   (100)    (354)   (275)
Gain on sale of subsidiary                 -     149              219
Equity in losses of joint ventures      (103)   (179)    (176)   (476)
Other income (expense)                    23     (52)    (143)   (176)
                                     ------- -------  ------- -------
Other expense, net                      (227)   (174)    (574)   (677)
                                     ------- -------  ------- -------
Net income (loss)                    $   487 $   587  $(5,546)$ 1,163
                                     ======= =======  ======= =======
Basic net income (loss)
per common share                     $  0.02 $  0.02  $ (0.22)$  0.05
                                     ======= =======  ======= =======
Diluted net income (loss)
per common share                     $  0.02 $  0.02  $ (0.22)$  0.05
                                     ======= =======  ======= =======
Weighted average basic
common shares outstanding             24,785  24,827   24,785  24,808
                                     ======= =======  ======= =======
Weighted average diluted
common shares outstanding             24,875  25,170   24,785  25,566
                                     ======= =======  ======= =======
	   *   The unaudited consolidated financial information included in
        this document is intended only as a summary provided for your
        convenience, and should be read in conjunction with the
        complete consolidated financial statements of the Company
        (including the Notes thereto, which set forth important
        information) contained in its Reports on Form 10-K and 10-Q
        filed by the Company with the U.S. Securities and Exchange
        Commission (SEC). Such reports are available on the public
        EDGAR electronic filing system maintained by the SEC.
            

CONTACT:          AXS-One Inc.
                  William Levering, 201/935-3400
                  wlevering@axsone.com
                  or
                  Springboard Communications
                  Domenick Cilea, 732/863-1900 x102
                  dcilea@springboardpr.com