Press Release

AXS-One, FaceTime Join Forces to Help Corporations Ensure Compliance and Security for IM Content in the Workplace

AXS-One to Distribute FaceTime Instant Messaging and Compliance Products; End-to-End Solution Manages Electronic Records and Secures Enterprise Networks

FOSTER CITY, CALIF - July 24, 2006 - AXS-One Inc. (AMEX:AXO), a leading provider of high-performance Records Compliance Management (RCM) software solutions and FaceTime Communications, the leading provider of solutions for securing and managing greynets, today announced a partnership to offer companies a highly scalable solution for security, compliance and archiving that embraces enterprise use of real-time communications such as instant messaging.

While e-mail continues to be the dominant medium of business communication, the use of instant messaging (IM) in the enterprise has clearly reached critical mass. The 2006 Workplace E-Mail, Instant Messaging & Blog Survey from the American Management Association (AMA) and The ePolicy Institute, released earlier this month, reports that despite the widespread use of IM in the workplace - some reports place it at 90 percent - only 31 percent of companies have an IM policy in place and even fewer, 13 percent, actually retain IM business records. This trend poses additional challenges for companies already facing pressure from rising volumes of content in multiple formats, and increasingly stringent compliance regulations that require organizations to log, archive and audit all forms of electronic communications, with complex guidelines that mandate which communications must be retained and for how long. However, a potentially greater source of concern is the process of legal discovery - in the future, most discovery requests likely will ask for all IM communications related to the issue under litigation, just as they do for e-mail now, and companies unable to comply will face serious sanctions.

"For all intents and purposes, there's no legal distinction between e-mail and IM, yet many organizations that archive e-mail continue to neglect IM, and they do so at their own peril," said Bill Lyons, CEO, AXS-One. "It's imperative that companies put technologies and processes in place to archive all communications, regardless of format, in accordance with the law, and before there's a government inquiry of legal discovery order."

Both companies bring unique technologies to the table. The AXS-One Compliance Platform, featuring patent-pending Rapid-AXS technology, provides a highly flexible, scalable and extensible architecture for mailbox management, compliance and legal discovery across many e-mail platforms and record types. The platform allows non-IT personnel to conduct complex legal discovery searches yielding accurate and complete result sets, which can be placed on legal hold to accomplish the duty-to-preserve requirement across large volumes of archived data.

Under the terms of the agreement, AXS-One will distribute FaceTime Enterprise Edition (including IMAuditor and RTGuardian) and Greynet Enterprise Manager (GEM), providing an end-to-end security and compliance solution for greynets including IM, P2P and web conferencing applications. Corporate information resources are protected both from outside threats such as spyware, adware and malware, as well as from information leakage from within the company. FaceTime's unique TrueCompliance™ features ensure that the most stringent controls are implemented over real-time content, while ensuring accurate delivery.

The products have been tested for interoperability by engineers at both AXS-One and FaceTime and can be deployed in multiple configurations. With the partnership between the companies, enterprises can implement a true end-to-end solution that spans several critical needs: legal discovery, regulatory compliance, security and overall risk management.

"AXS-One and FaceTime share a common goal: empowering users to take advantage of communication tools, while enabling IT to ensure that all electronic records comply with a broad range of regulatory and legal requirements, which also ensures the security of the entire enterprise network," said Kailash Ambwani, president and CEO of FaceTime Communications. "These complementary goals led us to partner with AXS-One. Together, we can offer customers a comprehensive combination of security and compliance services that will enhance business productivity while protecting the enterprise from non-compliance, security threats and information loss from within."

About AXS-One
AXS-One Inc. (AMEX: AXO) is a leading provider of high performance Records Compliance Management solutions. The AXS-One Compliance Platform enables organizations to implement secure, scalable and enforceable policies that address records management for corporate governance, legal discovery and industry regulations such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and Gramm-Leach Bliley. AXS-One's award-winning technology has been critically acclaimed as best of class and delivers digital archiving, business process management, electronic document delivery and integrated records disposition and discovery for e-mail, instant messaging, images, SAP and other corporate records. Founded in 1979, and headquartered in Rutherford, NJ, AXS-One has offices worldwide including in the United States, Australia, Singapore, United Kingdom and South Africa. For further information, visit the AXS-One web site at http://www.axsone.com.

About FaceTime Communications
FaceTime Communications enables the safe and productive use of instant messaging, Web usage and Unified Communications platforms. Ranked number one by IDC for four consecutive years, FaceTime's award-winning solutions are used by more than 900 customers – including nine of the 10 largest U.S. banks – for security, management and compliance of real-time communications. FaceTime supports or has strategic partnerships with all leading public and enterprise IM network providers, including AOL, Google, Microsoft, Yahoo!, Skype, IBM, Reuters and Jabber.

FaceTime is headquartered in Belmont, California. For more information visit http://www.facetime.com or call 888-349-FACE. The FaceForward blog, at http://blog.facetime.com, offers thoughts and opinions about the changing nature of Internet communications.

PR Contact:

Emily Chamberlin
650-762-2945
echamberlin@ar-edelman.com