The contract was Axcess’ second in the region, following the 2007 award in Barbados. Based uponthat contract and its traditional channel partner sales, Axcess was profitable for the secondquarter 2009 and for the first half of 2009. Axcess is also forecasting record revenues for 2009.Axcess is actively working to grow its Caribbean Port Security Initiative through sales to otherisland nations.To leverage its success in Wireless Credential applications the Company introduced itsDotTM Wireless Credential product into the security distribution sales channel as abundled system so existing proximity access control systems in businesses can be easily expandedinto advanced workforce management solutions for improving security, safety, compliance reportingand efficiency. Wireless Credentials provide businesses visibility into the location and status oftheir labor and assets inside their operations.Wireless Credentials have proven to provide near immediate returns for customers as part of therapidly growing $9 billion worldwide market for access control systems. Significant efforts havebeen made this decade to introduce innovative security technologies such as biometrics intopersonnel badges for providing identity authentication at the building entrances. But once insidethe business, the manual credentials are useless without location, tracking and sensingcapabilities. Until recently, attempts to introduce wireless badges for long range automaticidentification and tracking have fallen short because they have been too costly, too big,unreliable, too short lived and incompatible with existing access systems. Axcess’ Dot WirelessCredential has solved all these problems and has been successfully implemented in 10 welldocumented applications across multiple industry verticals.The unique aspect of Axcess’ MicroWireless technology is that the powered wireless devices attachedto assets and personnel autonomously collect their exact location ID and status which is providedwithout a central processing element required by RFID and RTLS systems. Further, to makeinterconnectivity with an enterprise’s legacy systems easier, Axcess announced a partnership withMicrosoft Corporation whereby interconnection to the Axcess system is embedded into MicrosoftBizTalkTM Server 2009 product to enable businesses to develop innovative businessintelligence applications by providing connectivity into back office legacy applications such asERP systems.MicroWireless communications has been proven to represent the technological sweet spot whereautonomous wireless identification and data transfer are best enabled in very small, low costbattery-powered devices. Regardless of their hardware platform or form factor, devices or tagscommonly called DotsTM operate in their own wireless frequency and are designedspecifically for the unique need, independent from interference and unobtrusive to backbonenetworks. For these uses, MicroWireless eclipses other wireless technologies such as cell phones,EPC-RFID, Ultra-Wideband (UWB), Zig-Bee, Wi-Fi and Bluetooth which are not suited to the automatedmonitoring of personnel and assets in the enterprise because of unacceptable cost, size,reliability, infrastructure and power consumption constraints.Bringing to market the complete set of innovative functions of MicroWireless creates an openarchitecture for multiple sources of data to be acquired to deliver previously inaccessibleinformation 24/7 in real-time. These innovation and growth efforts continue to be supported by ourshareholders and by key financial advisor, Amphion Innovations plc.
 
 

 
**Second Quarter and First Half of 2009 Financial Results**Revenue was $3,156,836 for the three months ended June 30, 2009 compared to $487,345 for the threemonths ended June 30, 2008. Revenue for the six months of 2009 was $4,239,518 compared to $663,831for the same period in 2008. The increase in sales is a result of the Trinidad Contract awarded inJanuary 2009. Add-on sales that are considered by the Companyto represent a form of recurring revenue was 21% of total sales in the second quarter 2009 and 31%for the first half of 2009.Gross margin was 75% or $2,358,906 in the second quarter 2009 as compared to 47% or $228,477 in the2008 period, and 64% or $2,695,614 in the first half of 2009 as compared to 45% or $299,236 in thefirst half of 2008. The increase in gross margin was due to a change in product mix as a result ofthe Trinidad Contract awarded in January 2009.Research & Development (R&D) expenses for the second quarter totaled $239,240, compared to $536,098in the prior year period and $548,599 for the first half of 2009, compared to $1,407,687 for thefirst half of 2008. The decrease in R&D is due to the timing of the development of the nextgeneration RFID product which we continue to expense as it is incurred.Selling, Marketing, General and Administrative (S, M, G & A) expenses for the second quartertotaled $942,563, as compared to $676,065 in the prior year period and $1,661,574 for the firsthalf of 2009, as compared to $1,389,551 for the first half of 2008. The majority of the increaserelates to an increased selling expense relating to the Trinidad contract.Other expenses for the second quarter of 2009 totaled $56,266, as compared to $175,819 for theprior year period in 2008 and $119,818 for the first half of 2009 compared to $292,242 for thefirst half of 2008. The majority of the decrease relates to the decreased interest expense recordedin connection with the issuance of warrants to the convertible notes issued during 2008.Net income (loss) for the second quarter of 2009 was $1,115,779 as compared to ($1,162,175) in theprior year period and $355,901 for the first half of 2009 as compared to ($2,797,206) in the firsthalf of 2008. The increase in the net income is mainly related to the increased margin contributionof the Trinidad contract, lower research and development expenses and lower interest expense.Recurring preferred stock dividend requirements for the second quarter of 2009 was $47,797 and$71,592 for 2008 and $95,263 for the first half of 2009 and $148,547 for the first half of 2008.Axcess also recorded a one-time dividend of $558,686 for the preferred stock issued during thesecond quarter of 2008.Net income (loss) applicable to common stock for the 2009 second quarter was $1,067,982, or $0.03per share, compared to a loss of ($1,792,453) or $0.06 per share, for the second quarter of 2008and $260,638 or $0.01 per share, for the first half of 2009 compared to $3,504,439 or $0.12 pershare for the same period in 2008.**Conference Call**In conjunction with the earnings release, Axcess invites you to listen to its conference callFriday, August 14, 2008 at 12:00 p.m. (Eastern). To participate in the call, domestic callers candial (888) 680-0860 and international callers can dial (617) 213-4852 and enter the reservationcode “26807408.” Participants should dial into the call about 10 minutes prior 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 “39882595.” The replay will be available for one month beginning approximately two hoursafter the end of the call. There is no charge for participants to access the live event or replay.
 
 

 
The conference call and replay dial in information is also available at Axcess’ Website atwww.axcessinc.com.**About Axcess International Inc.**Axcess International Inc. (OTCBB: AXSI) provides wireless business activity monitoring solutionsincluding its intelligent *Wireless Credentials*for business encompassing local locationidentification, tracking and control capabilities. Using its patented MicroWirelessTMtechnology platform, the complete system solutions supersede existing manual personnel badges byautomating various workforce management tasks that increase productivity, security, safety andbusiness intelligence. Real-time data from labor activities also enable previously unattainablebusiness intelligence and analytics initiatives. MicroWireless — based on *active RFID*principles —is the economic and technological sweet spot for autonomously-powered low cost, miniature, remotecommunication devices. Axcess is a portfolio company of Amphion Innovations plc (AIM: AMP).Additional information on Axcess is available on the Company’s Web site at www.axcessinc.com.**Contacts**         Public Relations Axcess Contact Investor RelationsDriver Public Relations Axcess International EPOCH Financial GroupKenni Driver Allan Frank, CFO James Kautz972.978.6455 972.407.6080   888.654.5318  kenni.driver@driverpr.com afrank@axcessinc.com jkautz@epochfinancial.comThis 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.**