**Exhibit 99.1**

 

**AXCESS INTERNATIONAL REPORTS FIRST QUARTER 2010RESULTS**

 

**DALLAS, TX**—**May 13, 2010**—Axcess International Inc., (OTCBB: AXSI) a leader in local area Wireless IDsolutions, today reported results for the quarter ending March 31, 2010.

 

**Highlights for the First Quarterending March 31, 2010**

 

·                  Revenue for the quarter was $145,289

·                  Introduced new integrated WirelessID-Access Control product at ISC Security Trade Show

·                  Introduced new security industry marketchannels with global corporate partners

·                  Gross margin was $59,240 or 41%

·                  Net Loss $1,118,732 represents $0.03 pershare of common stock

·                  Patented MicroWirelessTM technologycontinues to demonstrate competitive advantages and opportunities for futureinnovations

 

“The introduction of thenew DotTM Wireless ID product at the InternationalSecurity Conference trade show launched a new era for the Company,” said AllanGriebenow, president and CEO of Axcess. Mr. Griebenow further stated, “Theproduct offers an exciting growth platform for wireless-based features tailoredto specific industry segments. Supported by our agreement with HID Global, thedominant access control products supplier in the world, and under the AdvantageHID ConnectTM Partner program we are also the first Companyto field a local area wireless ID integrated with proximity accesscontrol.  Now a single badge can provideaccess to the facility and open up the multitude of security, safety andproductivity solutions inside the enterprise. Growing traditional security market channels with HID and others whichprovide a global sales coverage has set the stage for the product’sintroduction and revenue contribution while reducing the Company’s dependenceon large projects.”

 

**Corporate and IndustryDevelopments**

 

Axcess’ systems for business and government use itspatented MicroWirelessTM technology to wirelessly enable business IDbadges, access control cards and other credentials to provide automatic localarea real-time business activity monitoring and control solutions. Manualaccess control and business ID systems, which are constrained in their value tothe front door, are easily upgraded to Axcess’ solutions inside the enterprise.These include high speed access control, internal security monitoring andintrusion detection, emergencyevacuation workforce accounting, automatic asset protection andvisitor tracking for security and compliance reporting. Systems are also used for contractortime and attendance data collection, safety monitoring and compliancereporting, and workforce time and motion data collection for business processimprovement and business intelligence initiatives.

 

The Company introduced a new DotTM Wireless ID product at the InternationalSecurity Conference (ISC-West) trade show in Las Vegas in March. Various AxcessDotTM solutions weredemonstrated in kiosks located in the HID Global and Tyco-ADT corporate tradeshow booths highlighting the new product and introducing it to sales personnel,independent security system dealers, system integrators and distributors aswell as end users.  The product is beingpositioned as a natural evolutionary step for access cards and business IDs toprovide added value in the enterprise. It is expected that Axcess’ reference accounts in oil/gas, petrochem,construction, utilities, transportation, DoD, and government will providesupport for new sales.

 

During the quarter, Axcess finalized a contract valuedat approximately $100,000 to provide a worker safety monitoring solution on anoil platform, the Company’s second order on that type of facility.  Axcess has numerous proven-in installationsin the oil and gas industry.  Follow-onsales for systems already installed occurred in the areas of mining personnelsafety, IT asset tracking and loss prevention, and government weapons automatedinventory and loss prevention.

 

The Company believes the recent oil refinery, oilplatform, and mining disasters will bring a new awareness to the Company’sworkforce safety solutions.  The DotTM Wireless IDwith an embedded motion sensor now provides personnel telemetry data which isconstantly monitored to sense a workplace

 

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injury situation. Additional features in support of safety and security are being readiedto further the Company’s competitive advantage in these areas.

 

Axcess’ core technology area of MicroWirelessTM communicationshas now been proven to represent the technological sweet spot where autonomouswireless identification and data transfer are best enabled in very small, lowcost battery-powered devices. Regardless of their hardware platform or formfactor, DotTM IDs operate in their own wireless frequencyand are designed specifically for the unique need, independent frominterference and unobtrusive to backbone networks. 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 notsuited to the automated monitoring of personnel and assets in the enterprisebecause of unacceptable cost, size, reliability, infrastructure and powerconsumption constraints.

 

The core technology continues to be supported by astrong intellectual property foundation of patents and filings.  The Company believes this portfolio willcontinue to open opportunities for IP monetization and strategic partnershipsin the near term and long into the future.

 

Bringing to market thecomplete set of innovative functions of MicroWireless, creates an openarchitecture for multiple sources of data to be acquired to deliver previouslyinaccessible information 24/7 in real-time. These innovation and growth effortscontinue to be supported by our shareholders and by key financial advisor,Amphion Innovations plc.

 

**Three Months Ended March 31,2010 Financial Results**

 

Revenue for the threemonths of 2010 was $145,289 compared to $1,082,682 for the same period in 2009.The decrease in revenue is a result of the Caribbean Port Security Initiativein the first half of 2009 that has not been repeated in 2010.  Add-on sales that are considered by theCompany to represent a form of recurring revenue were 55% of total sales(excluding the Caribbean Port Security Initiative) in 2010 and 45% for 2009.

 

Gross margin was 41% or$59,240 for 2010 compared to 31% or $336,708 for 2009, reflecting an improvedsales mix and timing of the increased scope of the system installation for theCaribbean Port Security Initiative.

 

Research anddevelopment expenses were $343,677 for the three months ended March 31,2010 and $309,359 for the three months ended March 31, 2009.  The majority of the increase relates to thenon-cash stock compensation expense from option grant that was completed at theend of the 2009 offset by a reduction in prototype development.

 

Selling, marketing,general & administrative (S, M, G & A) expenses were $732,620for the three months ended March 31, 2010, as compared to $719,012 in2009.  The majority of the increaserelates to the non-cash stock compensation expense from option grant that wascompleted at the end of the 2009 and a slight increase in legal, investorrelations and advertising expenses.

 

Other expense for the three months ended March 31,201 totaled $96,418, as compared to $63,551 for 2009.  Interest expense was $10,943 lower during thethree months ended March 31, 2010, compared to the three months ended March 31,2009, reflecting lower expense associated with warrants that were issued withthe convertible notes.   The gain onvendor settlements was also decreased by $43,810.

 

Net loss was $1,118,732for the three months ended March 31, 2010, compared to $759,878 for thethree months ended March 31, 2009. The increase is mainly related to a decrease in gross margincontribution and non-cash stock compensation expense from option grant that wascompleted at the end of the 2009.

 

Recurring preferred stock dividend requirements were$0 for three months ended March 31, 2010 and $47,466 for three monthsended March 31, 2009.  The decreaseis a result of 2003B Series preferred stock being converted to commonshares leaving no dividend paying preferred shares outstanding as of December 31,2009

 

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Net loss applicable to common stock for the threemonths ended March 31, 2010 was $1,118,732, or $0.03 per share, comparedto a loss of $807,344, or $0.03 per share for same period in 2009.  The majority of the increase in loss in thecurrent year period from the prior year is primarily attributable to theincrease in non-cash stock compensation expense from option grant that wascompleted at the end of the 2009 and decreased gross profit contribution fromthe Caribbean Port Security Initiative.

 

**Conference Call**

 

In conjunction with theearnings release, Axcess invites you to listen to its conference call Friday, May 14,2010, at 12:00 p.m. (Eastern).  Toparticipate in the call, domestic callers can dial (888) 713-4214 and international callers can dial (617) 213-4866 and enter the reservation code “18058804.”  Participants should dial into the callabout 10 minutes prior to the start time.

 

For those unable toattend 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 replay code “63704292.”  The replay will be available for one monthbeginning approximately two hours after the end of the call.  There is no charge for participants toaccess the live event or replay.

 

The conference call andreplay dial in information is also available at Axcess’ Website atwww.axcessinc.com.

 

**AboutAxcess International Inc.**

 

Axcess International Inc.(OTCBB: AXSI) provides intelligent Wireless Credentials for business encompassinglocal location identification, sensing and control capabilities using itspatented MicroWirelessTM technology platform. The complete systemsolutions supersede existing manual personnel badges by automating variousworkforce management tasks that increase productivity, security, safety andbusiness intelligence. MicroWireless — based on active RFID principles — is theeconomic and technological sweet spot for autonomously-powered low cost,miniature, remote communication devices around the local enterprise. Axcess isa portfolio company of Amphion Innovations plc (AIM: AMP). For more informationon Axcess, visit www.axcessinc.com.

 

Axcess’ on-demand webinars are viewable by linking to them from Axcess’Home page or clicking on the following links:

 

·                  EmergencyEvacuation Workforce Accounting

·                  MicroWirelessProcess Automation

 

**Contacts**

 
| Public  Relations         | Axcess  Contact       |
|---------------------------|-----------------------|
| Driver  Public Relations  | Axcess  International |
| Kenni Driver              | Allan Frank, CFO      |
| 972.978.6455              | 972.407.6080          |
| kenni.driver@driverpr.com | afrank@axcessinc.com  |

 

Thisrelease contains forward-looking statements as defined in Section 21E ofthe Securities Exchange Act of 1934, including statements about future businessoperations, financial performance and market conditions.  Such forward-looking statements involve risksand uncertainties inherent in business forecasts.

 

(tables to follow)

 

Source:Axcess International, Inc.

 

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**AXCESS INTERNATIONAL INC.**

**CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

 
| ** **                                                                                                                                                                                                            | ** ** | **March 31,  2010** | ** ** | **December 31,  2009** | ** ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------|------------|-----------------------------|------------|
| ASSETS                                                                                                                                                                                                                | ** ** | ** **               | ** ** | ** **                  | ** ** |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Current assets:                                                                                                                                                                                                       |       |                     |       |                        |       |
| Cash and cash equivalents                                                                                                                                                                                             |       | $                        | 129,941    |                        | $          | 65,534 |   |
| Accounts receivable - trade, net of allowance for  doubtful accounts of $24,715 for 2010 and 2009, respectively.                                                                                                      |       | 20,119                   |       | 142,213                     |       |
| Inventory, net                                                                                                                                                                                                        |       | 84,362                   |       | 83,387                      |       |
| Prepaid expenses and other                                                                                                                                                                                            |       | 41,300                   |       | 46,631                      |       |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Total current assets                                                                                                                                                                                                  |       | 275,722                  |       | 337,765                     |       |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Property, plant and equipment, net                                                                                                                                                                                    |       | 14,059                   |       | 16,727                      |       |
| Deferred debt issuance costs                                                                                                                                                                                          |       | 10,938                   |       | 12,500                      |       |
| Other assets                                                                                                                                                                                                          |       | 37,624                   |       | 40,213                      |       |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Total assets                                                                                                                                                                                                          |       | $                        | 338,343    |                        | $          | 407,205 |   |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                            | ** ** | ** **               | ** ** | ** **                  | ** ** |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Current liabilities:                                                                                                                                                                                                  |       |                     |       |                        |       |
| Accounts  payable (includes $25,059 and $15,253 with related party in 2010 and 2009,  respectively)                                                                                                                   |       | $                        | 870,818    |                        | $          | 831,484 |   |
| Accrued liabilities                                                                                                                                                                                                   |       | 486,144                  |       | 331,899                     |       |
| Accrued interest                                                                                                                                                                                                      |       | 1,306,150                |       | 1,246,812                   |       |
| Deferred revenue                                                                                                                                                                                                      |       | 8,507                    |       | 9,342                       |       |
| Notes payable                                                                                                                                                                                                         |       | 162,000                  |       | 162,000                     |       |
| Dividends payable                                                                                                                                                                                                     |       | —                   |       | 31,514                      |       |
| Total current liabilities                                                                                                                                                                                             |       | 2,833,619                |       | 2,613,051                   |       |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Notes payable to stockholders (includes $2,141,213  and $1,791,213 with a related party in 2010 and 2009, respectively)                                                                                               |       | 4,598,772                |       | 4,248,772                   |       |
| Debt discount                                                                                                                                                                                                         |       | (742,085                 | )          | (682,478                    | )          |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Total liabilities                                                                                                                                                                                                     |       | 6,690,306                |       | 6,179,345                   |       |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Commitments and contingencies                                                                                                                                                                                         |       |                     |       |                        |       |
| Stockholders’ deficit:                                                                                                                                                                                           |       |                     |       |                        |       |
| Convertible preferred stock, 10,000,000 shares  authorized in 2010 and 2009. Without liquidation preferences; $0.01 par  value, 4,550,201 and 4,550,211 shares issued and outstanding in 2010 and  2009, respectively |       | 45,502                   |       | 45,502                      |       |
| Common stock, $.01 par value, 70,000,000 shares  authorized in 2010 and 2009; 33,742,593 and 33,642,593 shares issued and  outstanding in 2010 and 2009, respectively.                                                |       | 337,426                  |       | 336,426                     |       |
| Additional paid-in capital                                                                                                                                                                                            |       | 167,922,894              |       | 167,385,813                 |       |
| Shares of common to be issued                                                                                                                                                                                         |       | 829                      |       | —                      |       |
| Accumulated deficit                                                                                                                                                                                                   |       | (174,658,614             | )          | (173,539,881                | )          |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Total stockholders’ deficit                                                                                                                                                                                      |       | (6,351,963               | )          | (5,772,140                  | )          |
|                                                                                                                                                                                                                  |       |                     |       |                        |       |
| Total liabilities and stockholders’ deficit                                                                                                                                                                      |       | $                        | 338,343    |                        | $          | 407,205 |   |

 

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**AXCESS INTERNATIONAL INC.**

**CONSOLIDATED STATEMENTS OFOPERATION**

**(Unaudited)**

 
| ** **                                           | ** ** | **Three Months Ended  March 31,** | ** ** |
|------------------------------------------------------|------------|----------------------------------------|------------|
| ** **                                           | ** ** | **2010**                               | ** ** | **2009** | ** ** |
|                                                 |       |                                   |       |   |   |
| Sales                                                |       | $                                      | 145,289    |   | $ | 1,082,682 |   |
| Cost of sales                                        |       | 86,049                                 |       | 745,974 |   |
|                                                 |       |                                   |       |   |   |
| Gross profit                                         |       | 59,240                                 |       | 336,708 |   |
| Expenses:                                            |       |                                   |       |   |   |
| Research and development                             |       | 343,677                                |       | 309,359 |   |
| General and administrative                           |       | 485,034                                |       | 324,453 |   |
| Selling and marketing                                |       | 247,586                                |       | 394,559 |   |
| Depreciation and amortization                        |       | 5,257                                  |       | 4,664 |   |
|                                                 |       |                                   |       |   |   |
| Operating expenses                                   |       | 1,081,554                              |       | 1,033,035 |   |
|                                                 |       |                                   |       |   |   |
| Loss from operations                                 |       | (1,022,314                             | )          | (696,327 | ) |
|                                                 |       |                                   |       |   |   |
| Other income (expense):                              |       |                                   |       |   |   |
| Interest expense                                     |       | (96,418                                | )          | (107,361 | ) |
| Gain on vendor settlements                           |       | —                                 |       | 43,810 |   |
|                                                 |       |                                   |       |   |   |
| Other income (expense), net                          |       | (96,418                                | )          | (63,551 | ) |
|                                                 |       |                                   |       |   |   |
| Net loss                                             |       | (1,118,732                             | )          | (759,878 | ) |
|                                                 |       |                                   |       |   |   |
| Preferred  stock dividend requirements:              |       | —                                 |       | (47,466 | ) |
|                                                 |       |                                   |       |   |   |
| Net loss applicable to common stock                  |       | $                                      | (1,118,732 | ) | $ | (807,344 | ) |
|                                                 |       |                                   |       |   |   |
| Basic and diluted net loss per share                 |       | $                                      | (0.03      | ) | $ | (0.03 | ) |
|                                                 |       |                                   |       |   |   |
| Weighted average shares of common stock  outstanding |       | 33,689,260                             |       | 31,211,006 |   |

 

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