City of San Jose Selects Datastream 7i Asset Performance Management Solution to Manage Hundreds of Municipal Facilities And Parks.

Business Editors/High-Tech Writers

GREENVILLE, S.C.--(BUSINESS WIRE)--June 7, 2004

City's General Services Department Uses Datastream 7i to Standardize Facility Management and Park Maintenance Data, Reduce Operations Costs and Deliver Optimal Services to Customers and Residents

Datastream Systems, Inc. (NASDAQ: DSTM) today announced that the City of San Jose, the third largest city in California and the 10th largest in the United States, has deployed the Datastream 7i(TM) Asset Performance Management solution to manage all facilities and parks maintained by its general services department.

Datastream 7i enables the City of San Jose to consolidate its Facilities Management and Parks Maintenance divisions' data into a single Web-architected application and provides management with real-time visibility across all of its operations. With this visibility, managers can make better-informed operational decisions to drive down costs and improve efficiency.

The City of San Jose is home to nearly one million residents. Its general services department is responsible for managing and maintaining close to two million square feet of office space, parks and public facilities for residents city-wide, including government offices, community centers, arenas, athletic fields, public gardens, parks and more.

Datastream 7i provides the department with an Asset Performance Management system that is flexible and scalable enough to effectively manage an enormous array of assets, ranging from playground equipment and athletic turf to electrical infrastructure, HVAC systems, plumbing and fire equipment. Nearly 250 staff members are using Datastream 7i to automate all of the work processes involved with the maintenance of these assets, such as issuing and tracking work orders, capturing labor and equipment costs and managing the inventory required to support operations.

"Datastream 7i is a cutting-edge product with workflow tools that provide a tremendous amount of flexibility. This enables us to configure the software to support and automate all of our existing business processes," said Randal Turner, deputy director of the general services department. "Datastream is capable of supporting our organization as it grows, which is vital to our long-term success. Datastream 7i provides the infrastructure to support our growth far into the future. From sales to service and support, our experience with Datastream has been outstanding in every respect."

With Datastream 7i, the general services department says it will achieve greater levels of customer satisfaction through faster response times and more efficient resource allocation and utilization. If there is a problem with any of the facilities in the City of San Jose, residents know that the problem will be fixed quickly and properly, without wasting taxpayer dollars. The general services department is currently extending the functionality of its Datastream 7i deployment so that customer feedback data can be captured right in the system, enabling the department to measure and maintain customer satisfaction levels.

"Municipalities like the City of San Jose face a significant challenge. They must maintain a broad array of buildings and public facilities across an expansive geography, while at the same time reducing costs and maintaining service excellence," said Larry Blackwell, president and CEO of Datastream Systems, Inc. "Datastream 7i is an excellent solution for municipalities. Its Web architecture and broad functionality provide a centralized solution for managing assets with maximum efficiency."

About Datastream Systems, Inc.

Datastream Systems, Inc. (NASDAQ: DSTM) provides Asset Performance Management software and services to enterprises worldwide, including more than 65 percent of the Fortune 500. Datastream's solutions combine world-class asset management functionality with advanced analytics to deliver a powerful platform for optimizing enterprise asset performance.

By using Datastream's solutions, customers can maintain and manage capital assets - such as manufacturing equipment, vehicle fleets and buildings - and create analyses and forecasts so they can take action to improve future performance. Datastream's flagship product, Datastream 7i(TM), delivers a complete Asset Performance Management infrastructure by combining an Internet, web services architecture with broad enterprise asset management functionality, integrated procurement, advanced analytics and multi-site capability.

Datastream was founded in 1986 and has customers in more than 140 countries. For more information, visit www.datastream.net.

Datastream and Datastream 7i are marks of Datastream Systems, Inc. ("Datastream" or the "Company"). All other products or Company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: increasing competition in the markets in which the Company competes; the stability of certain of the Company's strategic relationships, including those with suppliers of maintenance, repair and operations parts; the ability of the Company to: sell larger and more complex software solutions, successfully transition to the development of further Internet-based products, successfully implement an application service provider business model, enhance its current products and develop new products that address technological and market developments; and other risk factors listed from time to time in Datastream's SEC reports, including, but not limited to the "Risk Factors" contained in the Datastream's Annual Report on Form 10-K for the fiscal year ended December 31, 2003. Datastream does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in the Company's expectations or any changes in events, conditions or circumstances on which any forward-looking statement is based.