AXCESS International Announces Improved First Quarter 2005 Results

AXCESS International Inc., a provider of active radio frequency identification (RFID) solutions with applications in the security, supply chain and sensing industries, today reported results for the first quarter ended March 31, 2005.

First Quarter Highlights Include:
* RFID revenue increased 47% to $221,494 compared with fourth quarter RFID revenue of $151,080. Total revenue rose 35% to $241,158 versus fourth quarter total revenue of $177,870 and $206,678 in the year ago period
* Continued adoption of AXCESS' RFID technology as ActiveTag & FleetTag solutions secured key customer wins across a range of verticals, including Bechtel Hanford & JFK International Airport
* Signed GTSI, a $1.2 billion federal distributor as an AXCESS strategic integrator
* Formalized the design and engineering efforts required to develop the company's next generation tag

"The pieces we put into place last year enabled us to maintain positive momentum into the first quarter of 2005 as we grew revenue, added new RFID solutions to our portfolio and signed a new strategic integrator," commented Allan Griebenow, President & CEO of AXCESS. "We experienced 47% growth in our RFID revenue, as our expanded offering has seen greater adoption throughout a range of industries, including critical sectors such as HAZMAT tracking, airport access and healthcare. The increasingly broad awareness and acceptance of RFID has facilitated our expansion into these new sectors, and will only increase the opportunities we see for utilization of our technology in the future."

RFID revenue of $221,494 increased 47% for the quarter, compared to $151,080 in 2004 fourth quarter. The year ago RFID revenue was $174,307. The sequential and year-over-year increase is due to the Company's growing traction, focus and available product in the active RFID market. Total revenue rose 35% for the quarter to $241,158, compared to total revenue of $177,870 in the fourth quarter and $206,678 in the year ago period.