Datawatch Expands Healthcare Practice; Hires Healthcare Industry Expert to Lead Growth

Dedicated Practice Focuses on Unique Business Intelligence Requirements of Healthcare Providers and Payors

Chelmsford, MA - September 14, 2010 - Datawatch Corporation (NASDAQ-CM: DWCH ), a leader in Business Intelligence (BI), today announced that it has bolstered the company's healthcare practice. To support this strategic initiative, Datawatch hired veteran healthcare industry expert, Tom Callahan, who brings nearly 15 years of expertise helping healthcare companies solve their business and IT challenges.

New government regulations, national healthcare reform and a shift toward reimbursement models based on quality and outcomes, are putting increased pressure on healthcare organizations. The need for better, faster, more cost-effective access to critical data is becoming increasingly important. Unlike traditional BI solutions, Datawatch BI solutions put the right information into the hands of the right people, when and how they want it. The company's technology makes it possible to improve the quality of medical care and reduce overall medical expenditures from inefficiencies, fraud and over — or under-utilization of medical services — all without additional programming or support from the IT department. More than 1,000 healthcare organizations already use Datawatch BI solutions to achieve immediate and actionable insight into their business operations.

"The lack of integrated IT systems in the healthcare industry requires a decentralized, departmental approach to data management in order to extract critical business data from existing financial and decision support applications," said David White, senior research analyst for Aberdeen Group. "If we consider quality of care for example, only 29% of the organizations monitoring quality of care can automatically integrate and aggregate the data required. The rest are using labor-intensive, error-prone, manual integration. Datawatch's unique approach to BI makes them a strong choice for helping budget-strapped healthcare organizations make better, more informed business decisions — without programming or changes to existing systems."

"The healthcare market is poised for exponential growth. Tom Callahan has the right background and experience to guide our healthcare IT strategy and deepen our penetration in this high growth vertical market," said John Kitchen, senior vice president and chief marketing officer for Datawatch. "The combination of the great synergy between Datawatch's industry reputation as a provider of unique BI solutions and Tom's deep expertise in the healthcare vertical will accelerate our healthcare business plan and reinforce our commitment to bring innovative BI solutions to the healthcare market."

In his new role, Callahan is responsible for generating and supporting new healthcare market opportunities, nurturing existing healthcare customer relationships, directing and managing new product development for healthcare solutions, and driving revenue growth within the healthcare vertical. Previously, Callahan was a principal consultant at Edgewater Technology, Inc. and Keane, Inc., respectively, and an implementation manager at The Codman Group, where he focused on client management, project management, and the delivery of strategic BI and data warehouse projects for payors and providers. Callahan will leverage his in-depth healthcare industry knowledge and expertise to help healthcare organizations make evidence-based clinical, financial and operational decisions that support overall business goals.

"I am very excited to join the team. Datawatch's approach to BI is unique in the industry and combines the right technology and proven product vision to drive measurable results for its customers," said Callahan. "Considering that over the next five years, healthcare organizations will be required to report 'meaningful use' metrics based on the implementation of EMR systems, track key clinical and quality indicators, and communicate the results in a standard format, the right BI solution will be pivotal to successfully meeting these challenges. That's where Datawatch comes in. Our BI solutions quickly and cost effectively unlock the value of financial, clinical or operational data and reports — without programming or assistance from an already overburdened IT department — giving healthcare organizations the information they need to improve patient care and make a positive impact on the bottom line."

ABOUT DATAWATCH CORPORATION

Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Business Intelligence (BI), helps companies make better decisions and solve business problems by simplifying access to and analysis of information. Unique among BI vendors, Datawatch transforms the massive amounts of data and documents generated inside or outside a company into actionable insight, without any changes needed to existing systems. Datawatch customers benefit from the right information, in the right context, at the right time. More than 40,000 organizations worldwide rely on Datawatch products including its market-leading Monarch report and data mining solutions. 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
investor@datawatch.com
(978) 441-2200 ext. 8323

Media contacts:

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

Jena Coletti
Greenough Communications
jcoletti@greenoughcom.com
Phone: (617) 275-6528

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