Datawatch Corporation Announces Datawatch/BDS V7.1 for Secure, Centralized Enterprise Document Storage.

New security features allow conformance with Payment Card Industry (PCI) Data Security Standards (DSS)

CHELMSFORD, Mass. -- Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management (EIM), today announces general availability of Datawatch|BDS (Business Document Server) V7.1, the latest version of the company's enterprise document archive, management, access and distribution software system. New security features allow organizations the ability to quickly and easily conform to PCI Data Security Standards (DSS). Designed to augment the already robust capabilities of the company's current offering, Datawatch|BDS V7.1 offers an impressive feature set to help enterprises securely manage business documents and drive more efficient operations.

The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is intended to help organizations proactively protect customer account data.

Datawatch|BDS is the standard for high-volume enterprise document capture, imaging, archiving and retrieval, capable of managing billions of documents from the point of initiation through delivery. Datawatch|BDS addresses the need for centralized and comprehensive management of document images, reports, customer correspondence, statements and e-mail and acts as the archive and repository for these disparate document types, providing a single source from which static report-based data can be automatically transformed into actionable and timely information for the right users across the enterprise. By adding other specialized Datawatch modules, organizations can leverage the versatility of Datawatch|BDS for purposes such as document imaging; managing business process and workflow; and e-mail notification, distribution and management.

Datawatch|BDS V7.1 adds several important new security features designed to allow organizations to conform to the credit card industry's data security standards. Although quite complex, these standards, as they relate to application software, can be summarized by three major criteria:

* Encryption of Data at Rest--Document-based information stored in document repositories must be stored in an encrypted format that prevents unauthorized users from reading, viewing or converting the data into an unencrypted, readable format. Encryption keys must be fully protected, preventing unauthorized use.

* Encryption of Data in Transit--Sensitive information must be encrypted during transmission over networks to prevent interception, modification and diversion of data while in transit.

* Protection of Cardholder Account Number--Generally interpreted to mean masking of the Primary Account Number (PAN), Datawatch|BDS version 7.1 allows system administrators to designate a configurable mask for the PAN appearing in all documents, thereby preventing its display and the ability to print or download it.

"Datawatch|BDS is an important tool in our EIM solutions set because it allows users to perform secure high-volume capture, management, storage and delivery of documents, reports and other unstructured data which comprises the 85 percent of information in an organization that is not tucked away in a database," said Harvey Gross, vice president, enterprise product management and development for Datawatch. "For many of our customers, Datawatch|BDS is the cornerstone upon which their document management capabilities are built. The powerful new functionality in Datawatch|BDS V7.1 demonstrates our commitment to our customers and provides the secure platform that industry regulations require--all in a highly flexible and easy-to-use centralized document management solution."

ABOUT DATAWATCH CORPORATION

Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management, helps companies make better decisions and solve business problems by simplifying access to information. Unique among EIM 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 20,000 organizations worldwide rely on Datawatch products including its market-leading Monarch report and data mining solutions. Founded in 1985, Datawatch is based in Chelmsford, Mass., with offices in London, Sydney and Manila. For more information, visit www.datawatch.com.

Datawatch, the Datawatch logo, Monarch and Datawatch|BDS are trademarks or registered trademarks of Datawatch Corporation in the United States and/or other countries. All other names are trademarks or registered trademarks of their respective companies.