**Exhibit 99.1**

 
|  

NEWS RELEASE:

 

*For  immediate release:*

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|------------------------------------------------------------------|--------|--|

 

**AXCESS INTERNATIONAL REPORTS SECOND QUARTER 2010 RESULTS**

 

**DALLAS,TX**—**August 13, 2010**— AxcessInternational Inc., (OTCBB: AXSI) a leader in local area Wireless ID solutions,today reported results for the quarter ending June 30, 2010.

 

**Highlightsfor the Second Quarter ending June 30, 2010**

 

·                  Revenue for the quarter was $317,444

·                  Introduced new integrated Wireless ID-AccessControl product feature for industrial security and safety markets

·                  Gross margin was $171,678 or 54%

·                  Net Loss $603,336 represents $0.01 per shareof common stock

·                  Patented MicroWirelessTM technology continues to demonstratecompetitive advantages and opportunities for future innovations

 

“Wecontinue to build on the introduction of the new DotTM Wireless IDproduct introduced earlier this year by further developing our sales channelswith our integrator partners,” said Allan Griebenow, president and CEO ofAxcess. Mr. Griebenow further stated, “We continue to strengthen ourrelationship with HID Global, the dominant access control products supplier inthe world under our Advantage HID ConnectTM Partnerprogram agreement. Helped by solid application references in virtually allindustries for improved security, safety and productivity, we remain veryexcited about its potential. ”

 

**Corporateand Industry Developments**

 

Axcess’ systems for businessand government use its patented MicroWirelessTM technology towirelessly enable business ID badges, access control cards, property tags,parking passes and other manual IDs to provide automatic local area real-timebusiness activity monitoring and control solutions. Manual ID systems such asaccess control cards and bar code property labels are easily upgraded to Axcess’solutions inside the enterprise. Applications include high speed accesscontrol, internal security monitoring and intrusion detection, emergencyevacuation workforce accounting, automatic asset protection and visitortracking for security and compliance reporting. Systems are also used forcontractor time 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 newDotTM Wireless ID product at the InternationalSecurity Conference (ISC-West) trade show in Las Vegas in March. Various AxcessDotTM solutions were demonstrated in kiosks locatedin the HID Global and Tyco-ADT corporate trade show booths highlighting the newproduct and introducing it to sales personnel, independent security systemdealers, system integrators, distributors and end users.  The product is being positioned as a naturalevolutionary step for access cards and business IDs to provide added value inthe enterprise. It is expected that Axcess’ reference accounts in oil/gas,petrochemical, construction, utilities, transportation, DoD, and governmentwill provide support for new sales.

 

During the quarter, theCompany fulfilled a number of follow-on orders for existing accounts inconstruction safety, enterprise asset protection, oil/gas worker monitoring,casino key tracking, high throughput vehicle gate control and miner safetymonitoring. In order to better manage working capital, the Company instituted aseries of temporary salary cuts.

 

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Axcess augmented the safetyfeatures on Dot Wireless IDs through the addition of a “man-down” monitoringcapability.  Implemented on an oilplatform for worker safety, it can detect certain conditions that indicate aserious injury may have occurred using real time analyses of shocks, vibrationsand inclinations the wireless ID detects. The detections are automatically analyzed against the norm and ifoutside programmed parameters, transmits a wireless alert to responders.

 

Axcess’ core technology areaof MicroWirelessTM communications has now been proven torepresent the technological sweet spot where autonomous wireless identificationand data transfer are best enabled in very small, low cost battery-powereddevices. Regardless of their hardware platform or form factor, 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 technologycontinues to be supported by a strong intellectual property foundation ofpatents and filings.  The Companybelieves this portfolio will continue to open opportunities for IP monetizationand strategic partnerships in the near term and long into the future. Duringthe quarter, the Company filed a product patent infringement lawsuit against acompetitor.

 

Bringingto market the complete set of innovative functions of MicroWireless creates anopen architecture for multiple sources of data to be acquired to deliverpreviously inaccessible information 24/7 in real-time. These innovation andgrowth efforts continue to be supported by our shareholders and by keyfinancial advisor, Amphion Innovations plc.

 

**ThreeMonths Ended June 30, 2010 Financial Results**

 

Revenuefor the three months ended June 30, 2010 was $317,444 and for the threemonths ended June 30, 2009 was $3,156,836. Cost of sales for the three months ended June 30, 2010 was $145,766and for the three months ended June 30, 2009 was $797,930.  The gross profit for the three months ended June 30,2010 was $171,678 and $2,358,906 for the three months ended June 30, 2009.The majority of the decrease in sales is a result of the Caribbean PortSecurity Contract awarded in January 2009 that was not repeated during2010.  The gross margin percent for thethree months ended June 30, 2010 was 54% compared to 75% for the sameperiod in 2009.  The lower gross marginpercent was a result of the increased services provided in the Port SecurityContract and as a result of the timing of the project.  We continue to expect the margin willcontinue to be stable in the 40% to 50% range.

 

Researchand development expenses were $217,389 for the three months ended June 30,2010 and $239,240 for the three months ended June 30, 2009.  The majority of the decrease is the result ofa pay cut we implemented during the quarter. All salaries were cut from 20% - 40%. However, some of that savings was offset by an increase in developmentof the next generation RFID product.  Weare continuing to expense the development as incurred.

 

Corporategeneral and administrative expenses were $287,907 for the three months ended June 30,2010 and $410,470 for the three months ended June 30, 2009.  The majority of the decrease is the result ofa pay cut we implemented during the quarter. All salaries were cut from 20% - 40%. In addition we had a reduction of bad debt expense.

 

Sellingand marketing expenses were $139,706 for the three months ended June 30,2010 and $532,093 for the three months ended June 30, 2009.  The majority of the decrease is the result ofexpenses paid relating to the Caribbean Port Security Contract during2009.  In addition we implemented a paycut during the quarter.  All salarieswere cut from 20% - 40%.

 

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Depreciationand amortization expenses were $5,128 for the three months ended June 30,2010 and $5,058 for the three months ended June 30, 2009.  Depreciation is basically flat over theperiod.

 

Otherexpenses, net, were $124,884 for the three months ended June 30, 2010 and$56,266 for the three months ended June 30, 2009. Interest expense was$43,920 higher during the three months ended June 30, 2010, compared tothe three months ended June 30, 2009, reflecting higher expense associatedwith warrants that were issued with the convertible notes.   The loss on vendor settlements was alsoincreased by $24,698.

 

Netloss was $603,336 for the three months ended June 30, 2010, compared toincome of $1,115,779 for the three months ended June 30, 2009.  The increase in the loss is mainly related toa decrease gross margin mainly relating to the Port Contract.  Offset by lower salary expense as a result ofthe pay cuts implemented during 2010.

 

PreferredStock dividend requirements were $0 for three months ended June 30, 2010and $47,797 for three months ended June 30, 2009.  The decrease is a result of all holders ofthe dividend barring preferred shareholders converting their preferred sharesto common.

 

**Six Months Ended June 30, 2010 Financial Results**

 

Revenuefor the six months ended June 30, 2010 was $462,733 and for the six monthsended June 30, 2009 was $4,239,518. Cost of sales for the six months ended June 30, 2010 was $231,814and for the six months ended June 30, 2009 was $1,543,904.  The gross profit for the six months ended June 30,2010 was $230,919 and $2,695,614 for the six months ended June 30, 2009.The majority of the decrease in sales is a result of the Caribbean PortSecurity Contract awarded in January 2009 that was not repeated during2010.  The gross margin percent for thesix months ended June 30, 2010 was 50% compared to 64% for the same periodin 2009.  The lower gross margin percentwas a result of the Port Security contract. We continue to expect our overall margin will continue to be stable inthe 40% to 50% range.

 

Researchand development expenses were $561,067 for the six months ended June 30,2010 and $548,599 for the six months ended June 30, 2009.  The expenses are basically flat for the twoperiods.   However, there was an increasein the stock compensation expense (non-cash) and a reduction in salaryexpenses.  We implemented a 20% - 40% payreduction during the second quarter of 2010.

 

Corporategeneral and administrative expenses were $772,942 for the six months ended June 30,2010 and $734,923 for the six months ended June 30, 2009.  The expenses are basically flat for the twoperiods.   However, there was an increasein the stock compensation expense (non-cash) and a reduction in salaryexpenses.  We implemented a 20% - 40% payreduction during the second quarter of 2010.

 

Sellingand marketing expenses were $387,292 for the six months ended June 30,2010 and $926,651 for the six months ended June 30, 2009. The majority ofthe decrease relates to reduced selling expense relating to the port contractsigned and implemented during 2009 that was not repeated in 2010.

 

Depreciationand amortization expenses were $10,385 for the six months ended June 30,2010 and $9,722 for the six months ended June 30, 2009.  Depreciation is basically flat over theperiod.

 

Otherexpenses, net, were $221,302 for the six months ended June 30, 2010 and$119,818 for the six months ended June 30, 2009. Interest expense was$32,977 higher during the six months ended June 30, 2010, compared to thesix months ended June 30, 2009, reflecting the expense associated with thewarrants that were issued with the convertible notes.   The gain on vendor settlements decreased by$68,507.

 

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Netloss was $1,722,069 for the six months ended June 30, 2010, compared toincome of $355,901 for the six months ended June 30, 2009.  The increase is mainly related to a decreasein gross margin mainly relating to the Port Security Contract.

 

PreferredStock dividend requirements were $0 for six months ended June 30, 2010 and$95,263 for six months ended June 30, 2009.

 

**EarningsCall Information**

 

Inconjunction with the earnings release, Axcess invites you to listen to itsearnings call playback beginning Friday, August 13, 2010, after 1PMCDT.  Requests for the playback linkshould be sent to Allan Griebenow at allang@axsi.com.  The playback link will also be posted forplayback off of the website shortly thereafter. The Company’s website is www.axcessinc.com.

 

**About Axcess International Inc.**

 

AxcessInternational Inc. (OTCBB: AXSI) provides intelligent Wireless IDs for businessencompassing local location identification, sensing and control capabilitiesusing its patented MicroWirelessTM technologyplatform. The complete system solutions supersede existing manual personnelbadges by automating various workforce management tasks that increaseproductivity, security, safety and business intelligence. MicroWireless — basedon active RFID principles — is the economic and technological sweet spot forautonomously-powered low cost, miniature, remote communication devices aroundthe local enterprise. Axcess is a portfolio company of Amphion Innovations plc(AIM: AMP). For more information on Axcess, visit www.axcessinc.com.

 

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

 

·                  Emergency Evacuation Workforce Accounting

·                  MicroWireless Process 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-lookingstatements involve risks and uncertainties inherent in business forecasts.

 

(tables to follow)

 

Source:Axcess International, Inc.

 

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** AXCESS INTERNATIONAL INC. CONSOLIDATED BALANCE SHEETS (Unaudited)**

** **
| ** **                                                                                                                                                                                                            | ** ** | **June 30,  2010** | ** ** | **December 31,  2009** | ** ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------------|------------|-----------------------------|------------|
| ASSETS                                                                                                                                                                                                                | ** ** | ** **              | ** ** | ** **                  | ** ** |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Current assets:                                                                                                                                                                                                       |       |                    |       |                        |       |
| Cash and cash equivalents                                                                                                                                                                                             |       | $                       | 21,402     |                        | $          | 65,534 |   |
| Accounts receivable - trade, net of allowance for  doubtful accounts of $16,766 and $24,715 for 2010 and 2009, respectively.                                                                                          |       | 45,621                  |       | 142,213                     |       |
| Inventory, net                                                                                                                                                                                                        |       | 53,861                  |       | 83,387                      |       |
| Prepaid expenses and other                                                                                                                                                                                            |       | 19,925                  |       | 46,631                      |       |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Total current assets                                                                                                                                                                                                  |       | 140,809                 |       | 337,765                     |       |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Property, plant and equipment, net                                                                                                                                                                                    |       | 12,146                  |       | 16,727                      |       |
| Deferred debt issuance costs                                                                                                                                                                                          |       | 11,146                  |       | 12,500                      |       |
| Other assets                                                                                                                                                                                                          |       | 35,035                  |       | 40,213                      |       |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Total assets                                                                                                                                                                                                          |       | $                       | 199,136    |                        | $          | 407,205 |   |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                            | ** ** | ** **              | ** ** | ** **                  | ** ** |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Current liabilities:                                                                                                                                                                                                  |       |                    |       |                        |       |
| Accounts payable (includes $5,092 and $15,253 with  related party in 2010 and 2009, respectively)                                                                                                                     |       | $                       | 839,375    |                        | $          | 831,484 |   |
| Accrued liabilities                                                                                                                                                                                                   |       | 283,841                 |       | 331,899                     |       |
| Accrued interest                                                                                                                                                                                                      |       | 1,373,244               |       | 1,246,812                   |       |
| Deferred revenue                                                                                                                                                                                                      |       | 3,059                   |       | 9,342                       |       |
| Notes payable                                                                                                                                                                                                         |       | 117,000                 |       | 162,000                     |       |
| Dividends payable                                                                                                                                                                                                     |       | —                  |       | 31,514                      |       |
| Total current liabilities                                                                                                                                                                                             |       | 2,616,519               |       | 2,613,051                   |       |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Notes payable to stockholders (includes $2,361,213  and $1,791,213 with a related party in 2010 and 2009, respectively)                                                                                               |       | 5,068,772               |       | 4,248,772                   |       |
| Debt discount                                                                                                                                                                                                         |       | (874,372                | )          | (682,478                    | )          |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Total liabilities                                                                                                                                                                                                     |       | 6,810,919               |       | 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.                                                |       | 338,255                 |       | 336,426                     |       |
| Additional paid-in capital                                                                                                                                                                                            |       | 168,266,410             |       | 167,385,813                 |       |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Accumulated deficit                                                                                                                                                                                                   |       | (175,261,950            | )          | (173,539,881                | )          |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Total stockholders’ deficit                                                                                                                                                                                      |       | (6,611,783              | )          | (5,772,140                  | )          |
|                                                                                                                                                                                                                  |       |                    |       |                        |       |
| Total liabilities and stockholders’ deficit                                                                                                                                                                      |       | $                       | 199,136    |                        | $          | 407,205 |   |

 

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**AXCESS INTERNATIONAL INC.**

**CONSOLIDATED STATEMENTS OFOPERATION**

**(Unaudited)**

 
| ** **                                           | ** ** | **Three Months Ended  June 30,** | ** ** | **Six Months Ended  June 30,** | ** ** |
|------------------------------------------------------|------------|---------------------------------------|------------|-------------------------------------|------------|
| ** **                                           | ** ** | **2010**                              | ** ** | **2009**                            | ** ** | **2010** | ** ** | **2009** | ** ** |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Sales                                                |       | $                                     | 317,444    |                                | $          | 3,156,836 |   | $ | 462,733 |   | $ | 4,239,518 |   |
| Cost of sales                                        |       | 145,766                               |       | 797,930                             |       | 231,814 |   | 1,543,904 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Gross profit                                         |       | 171,678                               |       | 2,358,906                           |       | 230,919 |   | 2,695,614 |   |
| Expenses:                                            |       |                                  |       |                                |       |   |   |   |   |
| Research and development                             |       | 217,389                               |       | 239,240                             |       | 561,067 |   | 548,599 |   |
| General and administrative                           |       | 287,907                               |       | 410,470                             |       | 772,942 |   | 734,923 |   |
| Selling and marketing                                |       | 139,706                               |       | 532,093                             |       | 387,292 |   | 926,651 |   |
| Depreciation and amortization                        |       | 5,128                                 |       | 5,058                               |       | 10,385 |   | 9,722 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Operating expenses                                   |       | 650,130                               |       | 1,186,861                           |       | 1,731,686 |   | 2,219,895 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Profit (loss) from operations                        |       | (478,452                              | )          | 1,172,045                           |       | (1,500,767 | ) | 475,719 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Other income (expense):                              |       |                                  |       |                                |       |   |   |   |   |
| Interest expense                                     |       | (115,054                              | )          | (71,134                             | )          | (211,472 | ) | (178,495 | ) |
| Gain on vendor settlements                           |       | (9,830                                | )          | 14,868                              |       | (9,830 | ) | 58,677 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Other expense, net                                   |       | (124,884                              | )          | (56,266                             | )          | (221,302 | ) | (119,818 | ) |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Net income (loss)                                    |       | (603,336                              | )          | 1,115,779                           |       | (1,722,069 | ) | 355,901 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Preferred  stock dividend requirements:              |       |                                  |       |                                |       |   |   |   |   |
| Recurring                                            |       | —                                |       | (47,797                             | )          | — |   | (95,263 | ) |
| Preferred stock dividend requirements                |       | —                                |       | (47,797                             | )          | — |   | (95,263 | ) |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Net income (loss) applicable to common stock         |       | $                                     | (603,336   | )                                   | $          | 1,067,982 |   | $ | (1,722,069 | ) | $ | 260,638 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Net income (loss) per share                          |       |                                  |       |                                |       |   |   |   |   |
| Basic                                                |       | $                                     | (0.01      | )                                   | $          | 0.03 |   | $ | (0.05 | ) | $ | 0.01 |   |
| Diluted                                              |       | $                                     | (0.01      | )                                   | $          | 0.03 |   | $ | (0.05 | ) | $ | 0.01 |   |
|                                                 |       |                                  |       |                                |       |   |   |   |   |
| Weighted average shares of common stock  outstanding |       |                                  |       |                                |       |   |   |   |   |
| Basic                                                |       | 33,825,528                            |       | 31,776,731                          |       | 33,777,473 |   | 31,495,431 |   |
| Diluted                                              |       | 33,825,528                            |       | 43,338,048                          |       | 33,777,473 |   | 42,908,467 |   |

 

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