-------------------- FORM 4 -------------------- |_|Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b) UNITED STATES SECURITIES AND EXCHANGE COMMISSION OMB APPROVAL Washington, D.C. 20549 OMB Number: 3235-0287 Expires: December 31, 2001 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Estimated average burden Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 ------------------------------ OMB APPROVAL OMB Number: 3235-0287 Expires: December 31, 2001 Estimated average burden hours per response.........0.5 ------------------------------ (Print or Type Responses) -------------------------------------------------------------------------------- 1. Name and Address of Reporting Person* Russell Jr. Robert M. -------------------------------------------------------------------------------- (Last) (First) (Middle) 257 Great Valley Parkway -------------------------------------------------------------------------------- (Street) Malvern PA 19355 -------------------------------------------------------------------------------- (City) (State) (Zip) 2. Issuer Name and Ticker or Trading Symbol Axeda Systems Inc. ("XEDA") -------------------------------------------------------------------------------- 3. IRS or Identification Number of Reporting Person, if an entity (Voluntary) -------------------------------------------------------------------------------- 4. Statement for Month/Year 08/2002 -------------------------------------------------------------------------------- 5. If Amendment, Date of Original (Month/Year) -------------------------------------------------------------------------------- 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) X Director 10% Owner ----- ----- X Officer (give title Other (specify below) ----- below) ----- Chief Executive Officer and Chairman of the Board -------------------------------------------------------------------------------- 1 7. Individual or Joint/Group Filing (check applicable line) X Form filed by One Reporting Person |_| Form filed by More than One Reporting Person Table I-- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. *If this from is filed by more than one reporting person, see Instruction 4(b)(v). Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. (Over) SEC 1474 (3-99) 2 FORM 4 (continued) Table II-- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

Explanation of Responses: /s/ Robert M. Russell Jr. 8-29-2002 -------------------------------------------- ----------------------- **Signature of Reporting Person Date ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure. Potential persons who are to respond to the collection of information contained in this form are not required Page 2 to respond unless the form displays a currently valid OMB control number. SEC 1474 (3-99) Page 2 SEC 1474 (3-99) 3

RUSSELL ROBERT M 4