AXCESS Signs Two Partnering Agreements with Honeywell; OEM and R&D Agreements to Increase Sales, Enhance Technology and Address New Markets.

Business Editors

DALLAS--(BUSINESS WIRE)--Jan. 7, 2000

AXCESS Inc. (Nasdaq:AXSI) announced today that it has signed separate OEM and Joint Research & Development Agreements with Honeywell (NYSE:HON) of Morristown, N.J.

Under the OEM Agreement, Honeywell's Home and Building Control Division will promote, market, integrate, sell and service AXCESS' automatic identification and digital video product lines through its dealer, distribution and direct sales channels. The Joint Research and Development Agreement partners AXCESS and the Honeywell Technology Center to enhance the product and expand the use of AXCESS' "active" Radio Frequency Identification (RFID) tagging to other industry applications.

The two agreements are expected to facilitate the expansion and use of RFID and digital video products in AXCESS' and Honeywell's respective markets in the security, transportation, logistics and building controls industries.

The current AXCESS ActiveTag(TM) RFID products use battery powered tags and wireless communications for tracking and monitoring people, assets and vehicles. The AXCESS Prism Video product line includes network-based digital video cameras, transmission devices, and digital video recorders typically used in CCTV security and transportation applications. Both product lines are based on AXCESS' patented technologies.

"We are pleased that Honeywell is utilizing AXCESS' products and that they are committed to their enhancement. The agreements are a milestone in our joint efforts, which began over a year ago. I expect both companies to benefit greatly from the rapidly increasing demand for RFID and digital video products and applications," stated Allan Griebenow, president and ceo of AXCESS Inc.

"AXCESS is clearly a technological leader, and its strong RFID capabilities are transforming the security and asset management industry," said Rein Raud, Vice President of Fire & Security Solutions for Honeywell's Home and Building Control business unit. "Our customers are looking for solutions that solve security and asset management issues that affect their entire enterprise, and AXCESS' technologies will help us deliver those solutions."

Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. The company employs approximately 120,000 people in 94 countries. Honeywell is traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. Additional information on the company is available at their web site www.honeywell.com.

AXCESS Inc. is headquartered in Dallas and markets a complete line of integrated surveillance products employing active RFID technology and networked video/audio to solve security problems. Hands-free, long range RFID (radio frequency identification) technology is used to track and monitor people, assets and vehicles. In July of 1999 AXCESS acquired Prism Video, Inc.'s digital video technology. Using patented digital video compression technology, the Prism line of remote transmission and digital recording products provide security surveillance (CCTV), security video recording, traffic monitoring and networked digital communication across standard phone lines as well as satellite, ISDN, cellular and TCP/IP connections (LAN, WAN and the Internet).

For additional information, please see our web site at www.axsi.com.