Datawatch Joins Microsoft Interop Vendor Alliance.

CHELMSFORD, Mass. -- Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management (EIM), today announced that it has joined Microsoft and other industry leaders in the Interop Vendor Alliance (IVA). Formed in 2006, the IVA is a community of software and hardware vendors working together to enhance interoperability with Microsoft systems. Datawatch's membership in the IVA underscores its commitment to supporting products that help companies make better decisions and solve business problems by simplifying access to information.

Datawatch was recently selected as a Microsoft High Potential Managed Independent Software Vendor (ISV) Partner and was also one of the first ISVs to support Ecma Office Open XML ("Open XML"), the new file format also supported by Microsoft Office 2007. Participation in the IVA is the next step in Datawatch's extensive history of delivering solutions deeply integrated with Microsoft products.

"Microsoft is pleased to welcome Datawatch to the Interop Vendor Alliance," said Sam Rosenbalm, Interop Vendor Alliance manager, Microsoft. "Having vendors like Datawatch in the alliance helps us to design and deliver robust solutions that significantly improve the end-user experience and drive productivity. We are very excited about collaborating with Datawatch to build a bridge between open source and commercial technologies to benefit the entire IT ecosystem."

One of the most valuable capabilities that Datawatch provides to customers is through its Monarch Report Mining technology, which extracts and transforms the data produced by customers' ERP, CRM and other operational systems into Microsoft formats such as Excel. This ability to transform and integrate information from almost any application or platform without programming or script writing is extremely beneficial and extends the value of both the Datawatch and Microsoft solutions for their mutual customers.

"Joining the Interop Vendor Alliance gives us the opportunity to work with leading independent software vendors to enhance our overall product with the advantages of integrated and complementary functionality," said John Kitchen, senior vice president and CMO for Datawatch. "Improving interoperability and developing best practices for our mutual customers is an important component of our collaborative partnership with Microsoft."

For more information about the collaboration between Datawatch and Microsoft, view the Microsoft Case Study about Datawatch Corporation at http://www.microsoft.com/casestudies/casestudy.aspx? casestudyid=4000000028; Brian Jones: Open XML Format at http://blogs.msdn.com/brian_jones/archive/2007/02/27/datawatch-builds- reports-using-spreadsheetml.aspx; or Doug Mahugh: Open XML at http://blogs.msdn.com/dmahugh/archive/2007/02/27/monarch-a-product- for-breaking-into-your-own-data.aspx. (Due to the length of this URL, it may be necessary to copy and paste it into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)

ABOUT THE INTEROP VENDOR ALLIANCE

The Interop Vendor Alliance is an industry-wide group working to identify and share opportunities to better connect people, data and diverse systems through better interoperability with Microsoft systems and to jointly market interoperability solutions of its members. The organization serves as a collaborative forum for developing and sharing common technology models, facilitates scenario-based testing of multivendor solutions and works to communicate additional best practices to users. Since its formation in 2006, alliance membership has more than doubled as the IVA has developed five interoperability labs for Systems Management, Centralized Directory, Federated Identity, Content Management, and Open XML. Additional information about the Interop Vendor Alliance can be found on its Web site at http://www.interopvendoralliance.org.

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.