Datastream Hosting Operation Completes SAS 70 Audit, Validating Internal Processes and Helping Customers Meet Compliance Regulations.

GREENVILLE, S.C. -- SAS 70 Audit is Internationally Recognized Standard For Validating Internal Equipment, Controls and Security

Datastream Systems, Inc. (NASDAQ: DSTM) today announced that its hosting operation has completed the American Institute of Certified Public Accountants' Statement on Auditing Standards (SAS) no. 70 type II audit. SAS 70 is an internationally recognized audit for validating the internal controls of service providers and other businesses.

Customers including Canon Virginia, General Cable, Hi-Lex, Honeywell Sensor & Guidance Products, MasterBrand Cabinets Inc., and Maritz currently use Datastream's flagship Datastream 7i Asset Performance Management solution through the hosted deployment model. Customers frequently choose a hosted deployment model where Datastream hosts the application at its data center facilities. As a result, these customers can achieve a lower total cost of ownership by eliminating many personnel and hardware costs associated with deploying and maintaining an application in-house.

Federal regulations such as Sarbanes-Oxley, Gramm-Leach-Bliley and the Health Insurance Portability and Accountability Act require corporations to audit the internal controls of their suppliers, including those that provide hosting services. By undergoing the SAS 70 audit, Datastream can provide its customers with a comprehensive audit report that facilitates compliance with these and other regulations.

For this initiative, Datastream retained the services of SAS 70 Solutions, Inc., a national leader in SAS 70 auditing. During the audit, SAS 70 Solutions benchmarked key functional elements of Datastream's hosting operation against best practices defined by Control Objectives for Information and Related Technology (COBIT), the IT Governance Institute's generally accepted standard for good information-technology security and control practices. These elements include technology infrastructure, backup processes, system reliability, internal controls and security.

"Our hosting business is strategic to Datastream, and our recent success in passing this voluntary SAS 70 annual audit demonstrates the strength of this business unit and our commitment to the hosting strategy," said Datastream President and CEO Larry Blackwell." The success of this review will make it easier for our hosted customers to comply with various state and federal regulations as it ensures that Datastream maintains the highest standards for quality and consistency in hosted processes and data management."

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: the results of the investigation of the Company's Chinese operations and the results of the review by the Company of its transactions with resellers could vary from the financial results previously disclosed by the Company; if the Company cannot successfully appeal the notice of delisting before the Nasdaq Listing Qualifications Panel, the Company's common stock will be delisted from the Nasdaq Stock Market, which could adversely affect the liquidity of the trading market for our common stock, and, therefore, could adversely affect the trading price of our common stock; depending on the outcome of the current investigation, the scope of the investigation may be expanded; the Company's efforts in connection with the investigation into its Chinese operations have caused the Company to fall behind schedule with respect to its review of its internal controls, and as a result, the Company cannot be certain that it will be able to comply with the requirement of Section 404 of the Sarbanes-Oxley Act of 2002 by the December 31, 2004 deadline; increasing competition in the markets in which the Company competes; the stability of the Company's strategic relationships with third party suppliers and technologies; the ability of the Company to: sell larger and more complex software solutions, successfully transition to the development of further Internet-based products, successfully manage its international operations, enhance its current products and develop new products and services 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 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.