**Exhibit 99.1**AXCESS INTERNATIONAL ANNOUNCES THIRD QUARTER 2006 RESULTS**Dallas**– **November 15, 2006**– AXCESS International Inc. (OTCBB: AXSI), a leading provider of RadioFrequency Identification (RFID) solutions and Real Time Location Systems (RTLS), today reportedresults for the third quarter ended September 30, 2006.**Highlights for the Third Quarter Ended September 30, 2006** **•** YE Record RFID Revenue to be Achieved  **•** Year-to-date Revenue is Up 80% Over 2005  **•** Third Quarter Revenue was Up 81% Over Third Quarter 2005  **•** The Gross Margin Improved to 47%  **•** Third Quarter Loss Per Share of $.03 Within Range of Prior Guidance  **•** The Early Stage RFID Market Continues to Mature  **•** Further Success Achieved in Physical IT Asset Management Solutions  **•** Increase in Number of Signed Channel Partners  **•** Senior Technical Staff Augmented  **•** Set to Launch Marketing of New Technology“AXCESS’ revenue growth continued upward in the third quarter, with year-to-date revenueeclipsing last year’s total revenue. We will have record year-end revenue in 2006,” said AllanGriebenow, President and CEO of AXCESS. Mr. Griebenow further stated, “The RFID market continues tomature. Our application for the management and security of physical IT assets has been wellreceived, exemplified by the announcement of a new world class user, PriceWaterhouseCoopers. Theaccelerating loss of personal privacy information and corporate intellectual property continues toraise concerns and generate new legal mandates. Shortly after the quarter closed, we introducedour revolutionary new technology, the Enterprise DotTM. As the smallest, lowest costand most feature rich wireless System-on-a-Chip platform in the world, AXCESS further extends itslead in RFID, RTLS, and wireless sensing solutions.”**Corporate and Industry Developments**AXCESS provides complete RFID system solutions for improving productivity and security in industryand government. These systems are based on “active” RFID technology, where wireless “tags” useon-board battery power to transmit signals from a few feet to hundreds of feet in order toautomatically identify, track, monitor, and protect people, assets, and vehicles. Active RFIDsystems (as opposed to passive systems which have no battery power on-board) enable flexibleimplementations which can serve multiple purposes. AXCESS’ unique patented technology enables tagsto wake-up on-demand as needed to provide precise location determination and enable accurate andreliable information for real-time decision making. The ability to have tags always “on” in abeaconing signal mode plus have the option to transmit their status on demand is called“dual-active” operation. AXCESS’ dual-active RFID is the most economical and flexible solution onthe market today. The recent industry report by IDTechEx indicated active RFID solutions aregrowing rapidly and will sustain 28% compound growth through 2016 and reach $6.8B.Overall, the awareness of RFID globally continues to grow with the continued adoption of all typesof RFID and RTLS technologies across multiple industry segments including: the retail supply chain;vehicle toll tagging; contact less payment systems; transportation ticketing; security accesscontrol; military container tagging; and AXCESS’ enterprise solutions. Wal-Mart continues tomandate that more of its suppliers use low cost, disposable passive tags for identifying cases andpallets. In 2005, that awareness began to translate into increased user demand for active(battery-powered) RFID and RTLS applications. AXCESS believes it is developing its business into adistinct, exciting, and large niche within the total market basket of RFID solutions.The Company’s solution for the management and protection of physical IT assets continues to be bestin class. PricewaterhouseCoopers was announced as a customer for AXCESS’ Dual-Active RFID solutionfor asset management and protection. The solution prevents theft or loss of assets and data byoffering individual asset tracking and protection, dynamic wireless custodian assignments toassets, complete reports, and wireless alerting to exception-based security events. When an item isremoved from company premises without authorization the technology delivers actionable intelligencethrough which a reliable
 

 
security response can be determined and initiated. PricewaterhouseCoopers identified the potentialfor significant ROI by managing assets and by preventing computer theft. In addition to preventingmonetary loss associated with the theft or loss of IT assets, the company recognized how AXCESS’ActiveTagTM solution could empower them with the ability to better protect theirclients’ data through increased accountability and security.In the area of personnel access control and tracking, the Company announced the development of apartnership with Digital Defense Group, a producer of biometric-based secure identity cards.Digital Defense has integrated AXCESS International’s ultra-thin long range personnel card totransmit the industry’s only long range biometrically activated digital certificate. IronGateTMbiocard is a unique device that allows the benefits of highest level of security with theconvenience and high through-put capabilities of active RFID. The impact of this integration allowsfor applications like high security personnel and vehicle access through borders, industrial andsecured facilities. Utilities, transportation, IT, financial, medical and manufacturing are justfew of the industries mandating the use of biometrics in their security procedures. The IronGatebiocard assures biometric privacy because the biometric is stored on the card.During the quarter, the Company announced the signing of 34 partners in 14 different countries totheir Global Business Partnership Program. The results are a reflection of the enhanced partnerdevelopment program launched in Q3 2006 which enables systems integrators from disparatebackgrounds and worldwide locales to successfully sell, implement, and maintain AXCESS RFIDsolutions for enterprise operations in multiple industries. Driving the growth are integratorsfrom industries such as security, homeland defense, supply chain, enterprise management, bar-codingand automatic identification who are bumping into the limitations of passive RFID technology andrecognizing the need for the unique capabilities of Dual-Active RFIDTM. Demand is high domesticallyand around the world including the Latin America, Asia Pacific, and Middle East regions.The Company continues to work on its next generation products based on the demands of the marketfor smaller, lower cost tags and infrastructure which also have multiple features and flexibleoperating options. Just after the quarter ended, AXCESS announced a new, revolutionary wirelesstracking and sensing technology for 2007 called The Enterprise DotTM. Based on a System-on-a-Chip(SoC) design, the patents-pending technology yields the world’s lowest cost and smallestmultifunctional wireless sub-micro device for delivering visibility oriented data about the assetsoperating in and around the enterprise. Devices built on the DotTM platform will enable widespreadand reliable automatic identification, locating, tracking, protecting and monitoring of personnel,physical assets, and vehicles. DotTM facilitates the capture, processing and delivery ofpreviously unavailable real-time information for dramatic improvements in supply chain visibility,mobile asset management, physical asset security, access control, and industrial conditionmonitoring. The low cost and flexibility to use existing supply chain infrastructure results in avery low total cost of ownership, yielding short term ROIs for customers. In an OEM package, it issmall enough to be embedded into a variety of things such as computers, test equipment, medicalequipment, credential cards, pallets, and cartons.Bringing together the new functions of the DotTM and building on the current AXCESS wirelessinfrastructure for enterprise management creates an open architecture for multiple sources of datato be acquired to deliver previously inaccessible business intelligence. AXCESS sees this as anopportunity to use its time-to-market and technical advantages to serve an ever-expanding marketbased on its core technology which has been optimized for the exact needs of enterprise tagging.The DotTM technology will extend AXCESS’ existing time to market advantage. It furthereclipses competing architectures such as Wi-Fi based and battery-assisted passive RFID where size,cost, signal robustness and power management are problematic.The development of AXCESS’ intellectual property portfolio continues in support of the ongoingproduct development, market strategies, and to re-enforce competitive advantages. These innovationand growth efforts continue to be supported by our shareholder and key financial advisor AmphionInnovations plc**Third Quarter and Nine Months of 2006 Financial Results**Revenue was $369,621 for the three months ended September 30, 2006, an increase of 81% from thesame quarter in 2005. Revenue for the nine months of 2006 was $1,177,659, an increase of 80% fromthe same period in 2005. The increase in revenue in the quarter and the first nine months of theyear is due to the Company gaining traction in the active RFID market with new customers and add-onsales for
 

 
products and services relating to existing customers. Historically, AXCESS reported revenue fromits RFID and video businesses. Following the sale of the video patent portfolio in the firstquarter, the Company is generating and reporting revenues only from its RFID operations. Add-onsales that are considered by the Company to represent a form of recurring revenue was 25% of totalsales in the third quarter 2006 and 20% for the first nine months of 2006.Gross margin was 47% or $172,242, in the third quarter 2006 as compared to 46%, or $94,914, in the2005 period and 44% or $516,435, in the first nine months of 2006 as compared to 45% or $294,998 inthe nine months of 2005, reflecting an improved sales mix and benefits of manufacturing leverage.AXCESS outsources the manufacturing of all of its proprietary and patent-protected RFID systemcomponents.Research & development (R&D) expenses for the third quarter totaled $245,888, compared to $177,221in the year-ago period and $1,109,476 for the first nine months of 2006, compared to $569,141 forthe same period in 2005. The increase in R&D is due to the timing of the development of the nextgeneration RFID product which will continue to be expensed over the remainder of this year and intonext year.Selling, marketing, general & administrative (S, M, G &A) expenses for the third quarter totaled$735,848, as compared to $579,038 in the prior year period and $2,265,310 for the first nine monthsof 2006, as compared to $1,815,136 for the nine months of 2005. The majority of the increaserelates to non-cash costs associated with expensing of stock options from current and prior years,and certain public company expenses. Increased spending for sales and marketing initiativesprimarily reflect the expanding direct sales strategy implemented during the past several months,including higher advertising, personnel and travel costs.Other income (expense) for the third quarter of 2006 totaled ($59,651), as compared to ($118,641)for the same period in 2005 and $400,398 for the nine months of 2006 compared to ($356,562) for thenine months of 2005. The majority of the improvement relates to the gain on the sale of the videopatents and the lower interest expense resulting from lower debt balances and the completion of theamortization of the fees.Net loss for the third quarter of 2006 was $873,608 as compared to $785,720 in the prior yearquarter and $2,471,533 for the nine months of 2006 compared to $2,468,559 in the nine months of2005. The increase in the net loss is a result of the expenses of stock options that began in2006, the increase in research and development for the next generation RFID product and increasedselling and marketing activities offset by increased gross margins, the sale of video patents andlower interest expenses.Recurring preferred stock dividend requirements for the third quarter of both fiscal 2006 and 2005were $81,735 and $243,428 for the nine months of both years. AXCESS also recorded a one-timedividend of $645,020 for preferred stock issued in the second quarter 2006, $1,489,245 forpreferred stock issued in the first quarter of 2006 and $2,060,397 for warrants issued during thefirst quarter of 2005.Net loss applicable to common stock for the 2006 third quarter was $955,343, or $0.03 per share,compared to a loss of $867,455, or $0.03 per share, for the third quarter of 2005 and $4,849,226 or$0.17 per share for the nine months of 2006 compared to $4,772,384 or $0.18 per share for the sameperiod in 2005. The difference in loss in the current year period from the prior year is primarilyattributable to the preferred stock dividend requirements.**Financing**On November 9, 2006, AXCESS closed on a convertible loan for $140,000 of additional workingcapital. The loan is from the Company’s largest shareholder group, Amphion Innovations plc(AMP.L), a company which creates, operates, and finances technology companies. These investorshave been encouraged by AXCESS position in the RFID industry to capitalize on existing and moresubstantial emerging opportunities. The loan is anticipated to be converted into shares ofpreferred stock bearing no dividends and warrants to purchase the Company’s common stockexercisable for five years at $1.50 per share during the fourth quarter of 2006 as long as thecompany is able to close on a preferred equity offering of at least 700,000. The loan bearsinterest at 10% and is due on December 31, 2007.
 

 
**Conference Call**In conjunction with the third quarter earnings release, AXCESS invites you to listen to itsconference call today, November 15, 2006, at 4:30 p.m. (Eastern). To participate in the call,domestic callers can dial (866) 356-4441 and international callers can dial (617) 597-5396 andenter the reservation code “97030132.” Participants should dial into the call about 10 minutesprior to the start time.For those unable to attend the live conference call, a replay will be available by dialing (888)286-8010 for domestic callers and (617) 801-6888 for international callers and entering the replaycode “17971628.” The replay will be available from approximately one hour after the end of thecall until 11:59 (ET) on December 15, 2006. There is no charge for participants to access the liveevent or replay. The conference call and replay dial in information is also available on AXCESS’website at www.axcessinc.com.**About AXCESS International Inc.**AXCESS International Inc. (OTCBB:AXSI), headquartered in greater Dallas, TX, provides RadioFrequency Identification (RFID) solutions and Real Time Location Systems (RTLS) for assetmanagement, physical security and supply chain efficiencies. The battery-powered “active” and“semi-active” (on-demand) RFID tags locate, identify, track, monitor, count, and protect people,assets, inventory, and vehicles. AXCESS’ RFID solutions are supported by its integratednetwork-based, streaming digital video (or IPTV) technology. Both patented technologies enableapplications including: automatic “hands-free” personnel access control, automatic vehicle accesscontrol, automatic asset management, real time location determination, and sensor management.AXCESS is a portfolio company of Amphion Innovations plc.   Media Contact – AXCESS Investor Relations – Darrow AssociatesKelly Stark Jordan Darrow972-250-5981 631-367-1866kstark@AXCESSinc.com jdarrow@darrowir.com
This release contains forward-looking statements as defined in Section 21E of the SecuritiesExchange Act of 1934, including statements about future business operations, financial performanceand market conditions. Such forward-looking statements involve risks and uncertainties inherent inbusiness forecasts.(tables to follow)Source: AXCESS International, Inc.
 

 
**AXCESS INTERNATIONAL INC.**