RUTHERFORD, NJ, July 31, 2001 – AXS-One Inc. (AMEX:  AXO) today reported total revenues of $9.6 million and $21.2 million for the three and six months ended June 30, 2001 compared to $12.3 million and $24.2 million for the corresponding periods last year.  The Company reported operating losses, net losses, and basic and diluted net loss per share for the quarter ended June 30, 2001 of $(4.7) million, $(4.9) million, and $(0.20) per share respectively, compared to operating losses, net losses, and basic and diluted net loss per share of $(191,000), $(265,000), and $(0.01) per share respectively for the same period in 2000.  In addition, for the six months ended June 30, 2001, the Company reported operating losses, net losses and basic and diluted net loss per share of $(5.7) million, $(6.0) million and $(0.24) per share respectively, compared to operating income, net losses and basic and diluted net loss per share of $111,000, $(23,000), and $(0.00) per share respectively, for the same period in 2000.  Included in losses for the three and six months of 2001 is restructuring and other costs of $1.1 million.

“Due to the weakening economy, AXS-One took steps in early June to lower operating costs; the effects of which would not start to be seen until July,” commented John Rade, CEO and President, AXS-One Inc.  “AXS-One expects operating cost savings of approximately $3.0 million per quarter compared to the three months ended June 30, 2001, excluding restructuring and other costs.  This was accomplished without reducing its research and development and customer service infrastructure.  In addition, we've doubled the number of quota-carrying sales personnel from that at the same time last year, thus retaining the resources to increase license revenue both from current and potential new customers,” concluded Rade. 

About AXS-One Inc.

AXS-One (AMEX: AXO) is a provider of e-Business financial and information management solutions for global 2000 companies, professional service organizations (PSOs) and financial managers.  AXS-One, formerly known as Computron Software, Inc., has implemented high-volume, scalable and secure business solutions for hundreds of customers across the globe. AXS-One has over 300 employees in offices worldwide, including Asia, Australia, Canada, Europe, United Kingdom, United States and South Africa.  AXS-One was founded in 1978, and is based in Rutherford, New Jersey.  For further information on AXS-One, visit the AXS-One web site at http://www.axs-one.com/.

 Some Recent News 

June 25, 2001 -- AXS-One announces support for Microsoft SharePoint Portal Server 2001 

May 1, 2001 -- AXS-One Broadens Its Market Outlook 

May 1, 2001 – AXS-One announces enterprise content management suite.

See Consolidated Statements of Operations  

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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, "Access Tomorrow Today", e-Cellerator, AXSPoint, AXS Desk and Tivity are trademarks of, and Trans AXS is a trademark of AXS-One Inc. in the U.S.  All other companies and product names are trademarks or registered trademarks of their respective companies.

Company Contact:

William G. Levering III        
AXS-One Inc.                    
wlevering@axsone.com
(201) 935-3400

AXS-ONE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

  The unaudited consolidated financial information included in this document is intended only as summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Company (including Notes the 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.