Datawatch Corporation Director Amends SEC Rule 10b5-1 Trading Plan.

CHELMSFORD, Mass. -- Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management (EIM), today announced that Director and former President and Chief Executive Officer Robert W. Hagger has amended his existing stock trading plan in accordance with Rule 10b5-1 of the securities Act of 1934.

Rule 10b5-1 allows for officers and directors to adopt written, pre-arranged stock trading at a time when they are not in possession of material non-public information. Using these plans, insiders can diversify their investment portfolios and reduce market impact by spreading stock trades out over a period of time, while avoiding concern about whether they were in possession of material non-public information when the stock was sold.

In connection with the plan, Robert Hagger commented, "Now that I have stepped down as CEO, I expect to continue to diversify my investment portfolio and to maintain a 10b5-1 trading plan as part of my estate planning."

Mr. Hagger's amended trading plan, which became effective December 6, 2007, now provides for the sale of up to 296,901 shares of stock to be sold from the plan effective date through February 25, 2008, and sales will be subject to certain price restrictions and other contingencies that extend to December 5, 2008. The original trading plan provided for the sale of up to 126,945 shares. As of January 18, 2008, approximately 170,788 shares in the aggregate have been sold under the trading plan.

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 and Monarch 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any such statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. The factors that could cause actual future results to differ materially from current expectations include the following: risks in stock price fluctuations, if any, related to sales of shares by any Datawatch officers or directors, risks associated with the uncertainty of the current economic climate; risks associated with fluctuations in quarterly operating results; Datawatch's dependence on its principal products; risks associated with international sales; risks associated with distributor sales; risks associated with acquisitions; an unfavorable result in any litigation; market acceptance of new products; dependence on the introduction of new products and possible delays in those introductions. Further information on factors that could cause actual results to differ from those anticipated is detailed in various publicly-available documents, which include, but are not limited to, filings made by Datawatch from time to time with the Securities and Exchange Commission, including but not limited to, those appearing in the Company's Form 10-K for the year ended September 30, 2007. Any forward-looking statements should be considered in light of those factors.