Datawatch Announces Strategic Repositioning of EMEA Operations

Company Re-signs, Expands Key Distribution Partner Relationship and Boosts Internal Team to Take Advantage of Opportunities in Emerging EIM and BI Markets

Chelmsford, MA - September 30, 2008 - Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management (EIM), today announced that it has significantly strengthened its channel sales capabilities in the Europe, Middle East and Africa (EMEA) markets by expanding the role of long-standing distribution partner Avanquest Software SA. Datawatch also hired industry veteran Sue Thexton as a consultant to help manage and grow the Datawatch EMEA business. These strategic moves are designed to address the growing demand for EIM products in the EMEA region, particularly in the Business Intelligence (BI) market.

Market demand for EIM applications continues to grow, fueled by the continued pattern of market consolidation, convergence of the BI and Enterprise Content Management (ECM) markets and the increasing needs of companies to manage, quickly access and analyze growing volumes of information and data to make effective operational decisions. According to Gartner, the EMEA enterprise software market is expected to reach 66 billion euros by 2012, with a five-year compound annual growth rate of 6.5 percent*.

"These trends make it the ideal time for Datawatch to bolster its position in the growing EMEA market," said Ken Bero, Datawatch president and CEO. "Businesses are seeking ways to unlock their company information and data for decision-making without spending significant resources or changing their business processes. Datawatch solves this problem with our family of EIM solutions. This announcement illustrates our commitment to the EMEA market and is yet another step in building our worldwide EIM strategy."

Avanquest has been a long-standing distribution partner for Monarch, Datawatch's flagship report mining desktop product. Under Datawatch's new EMEA sales strategy, Avanquest will assume a larger role in marketing and sales of Datawatch's complete family of Monarch BI solutions, including enterprise products.

"We have partnered with Datawatch for over 15 years, helping to build the company's European Monarch business," said Chris Thompson, managing director, Avanquest Solutions UK. "We are excited to expand our partnership with Datawatch, as it will strengthen our focus and make even better use of our highly skilled resources as we bring Datawatch's family of proven BI solutions to organizations throughout EMEA."

In addition to expanding the role of Avanquest, Datawatch is seeking to grow its partner network of corporate and value-added reseller partners to build its EMEA presence.

Datawatch has also hired industry veteran Sue Thexton, CEO of ThextonWorlock Ltd, to augment the Datawatch management team. Prior to ThextonWorlock Ltd, Thexton served as vice president EMEA for Macromedia Europe, as well as managing director Northern Europe for Adobe with over 15 years of software industry experience.

"We are very pleased to have Sue join the Datawatch team," added Bero. "She brings sales and marketing expertise as well as an outstanding track record of successfully building EMEA software businesses."

*11 April 2008, Market Trends: Enterprise Software, EMEA, 2007-2012
Fabrizio Biscotti, Chris Pang, Ruggero Contu, Teresa Jones, Dan Sommer, Bianca Francesca Granetto, Rene Millman

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ABOUT DATAWATCH CORPORATION

Datawatch Corporation (NASDAQ-CM: DWCH), the leader in report activation, helps companies make better decisions and solve business problems by getting more value from their current reports. Only Datawatch empowers end users to unlock the static information contained in existing reports from any internal or external source into dynamic data formats or applications, including Excel, without IT intervention or changes to existing reporting processes or infrastructure. Companies worldwide rely on Datawatch products including its market-leading Monarch desktop report activation software. Founded in 1985, Datawatch is based in Chelmsford, Mass., with offices in London, Sydney and Manila. For more information, visit www.datawatch.com.

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Investor Contact:

Datawatch Investor Relations
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(978) 441-2200 ext. 8323

Media contacts:

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Lisa G. Kilpatrick
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lisa_kilpatrick@datawatch.com
Phone: (978) 441-2200, ext. 8240
Fax: (978) 453-4443

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