During the quarter, Axcess successfully implemented its patented Micro-Wireless system into theMicrosoft BizTalk Server platform. BizTalk Server 2009 provides a solution that allowsorganizations to more easily connect disparate systems, and then process the composite ofinformation through pre-defined rules to automate new areas of business operations. Thecollaboration between Axcess and Microsoft Corp. will enable the collection of previouslyunavailable real-time business activity information throughAxcess’ “active” RFID system whichwirelessly enables assets, personnel and sensors. The strategic relationship results in an expandedset of tools that customers can use to drive productivity. BizTalk Server is used by ninety percentof the Global 100, including the majority of retailers, hotel chains and the largest U.S. companiesin pharmaceuticals, chemicals, railroads, telecommunications and aerospace and defense, openingadditional sales avenues to Axcess. The unique aspect of Axcess’ Micro-Wireless technology is thatthe powered wireless devices attached to assets and personnel autonomously collect their exactlocation ID and status that can be provided directly to Microsoft BizTalk Server without a centralprocessing element required by RFID and RTLS systems.Bringing to market the complete set of innovative functions of Micro-Wireless 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.**First Quarter 2009 Financial Results**Revenue was $1,082,682 for the three months ended March 31, 2009 compared to $176,486 for the samequarter in 2008. The majority of the increase relates to the Trinidad contract that was sold in2009.Gross margin was 31% or $336,708 in the first quarter 2009 as compared to 40% or $70,759, in thesame quarter in 2008. The 2009 margin percentage was adversely affected by the Trinidadtransaction. However, we continue to believe our margins will be stable in the 40%-50% range.Research & development (R&D) expenses for the first quarter totaled $309,359, compared to $871,590in the year-ago period. The decrease in R&D is due to the timing of the development of the nextgeneration RFID product that was launched in the fourth quarter of 2007.Selling, marketing, general & administrative (SMG&A) expenses for the first quarter totaled$719,012, as compared to $713,485 in the prior year period. We did have a significant increase inselling expenses in connection with the Trinidad transaction; however, we were able to offset themwith lower headcount in the selling and marketing area and lower marketing initiatives.Other expense for the first quarter of 2009 totaled $63,551, as compared to $116,423 for the sameperiod in 2008. The majority of the change was relating to an increase in the gain on vendorsettlements during 2009.Net loss for the first quarter of 2009 was $759,878, as compared to $1,635,031 in the prior year’sfirst quarter. The decrease in the net loss is a result of the decrease in research anddevelopment for the next generation RFID platform and the impact of the Trinidad contract.Recurring preferred stock dividend requirements for the first quarter of 2009 was $47,466, comparedto $76,955 for the same period in 2008. The majority of the decrease is due to the conversion ofseveral of the preferred shareholders converting their shares to common stock.Net loss applicable to common stock for the first quarter of 2009 was $807,344, or $0.03 per share,compared to a loss of $1,711,986, or $0.06 per share, for the first quarter of 2008. Thedifference in loss in the current year period from the prior year is primarily attributable to thedecrease in R&D and the impact of the Barbados Contract.**Conference Call**In conjunction with the earnings release, Axcess invites you to listen to its conference callThursday, May 14, 2009, at 12:00 A.M. (Eastern). To participate in the call, domestic callers candial (888) 680-0865 and international callers can dial (617) 213-4853 and enter the reservationcode “96426390.” 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 “68051096.” 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.**AxcessInternational Inc. (OTCBB: AXSI) provides wireless automatic identification and sensingsolutions for real-time business activity automation. When embedded into vehicle passes, propertytags, personnel badges and sensors, its revolutionary and patentedMicro-Wireless technologyenables automatic local-area wireless data collection and control applications. The systems improveproductivity, security and safety and enable personalized education and entertainment. Typicalapplications include: “hands-free” access control, automatic advanced workforce management,immersive entertainment, workflow management, asset monitoring and distributed sensing. Axcess is aportfolio company of Amphion Innovations plc (AIM: AMP). For more information on Axcess, visitwww.axcessinc.com.**Contacts**     Public Relations Axcess Contact Investor RelationsDriver Public Relations Axcess International James KautzKenni Driver Allan Frank, CFO 888.654.5318972.978.6455 972.407.6080 jkautz@epochfinancial.comkenni.driver@driverpr.com afrank@axcessinc.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.*###*
 
 

 
**AXCESS INTERNATIONAL INC.**