Datawatch Successful in Extending Restraining Orders Against Palms Technology.

WILMINGTON, Mass.--(BUSINESS WIRE)--Nov. 17, 1988--Datawatch Corporation (Nasdaq:DWCH) today announced the successful outcome of a hearing held on November 16, 1998 before Superior Court Judge Herman Smith, in the Middlesex Superior Court, in Datawatch's lawsuit against Palms Technology and its Chairman and CEO, Jesse E. Torres, III. After the Palms and Datawatch lawsuits were consolidated, Judge Smith heard oral argument and ruled as follows:

-- The Temporary Restraining Orders issued last week in Datawatch's favor and against Palms were ordered to remain in effect until further hearings in February, 1999. These Restraining Orders require Palms to preserve certain corporate assets and software pending further order of the court.

-- Judge Smith ruled in Datawatch's favor by denying Palms' request for an order preventing the distribution of certain Datawatch products.

-- On a motion that was not opposed by Datawatch, Judge Smith ordered discovery to be completed on an expedited basis.

Bruce Gardner, President and CEO stated: "We are extremely pleased with the result of yesterday's hearing, and plan to continue to vigorously pursue claims against Palms. Contrary to the assertions of Palms' counsel, we are gratified that the Court ordered discovery to be completed expeditiously. Datawatch believes that it will prevail in this case, and can only benefit from its early resolution. It is obvious that Palms and its counsel have elected to litigate the case by issuing misleading and self-serving press releases. Datawatch believes Palms' claims to be without merit and intends to aggressively pursue its claims against Palms in court, where the matter should be litigated."

Datawatch Corporation, headquartered in Wilmington, Massachusetts, is a leading provider of Enterprise Reporting and Service Center solutions that help organizations increase productivity, reduce costs and gain competitive advantage. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide.

The company's Quetzal/Q-Support product is the top-selling help desk solution in Europe and is quickly gaining ground in North America. The company's Monarch product is the top-selling report mining solution worldwide. Datawatch also offers Redwing, an Adobe Acrobat plug-in that simplifies text and table extraction from PDF documents.

Datawatch works with VARs, integrators, consultants and independent software vendors who sell and support Datawatch products. In addition, Datawatch works with OEM customers who embed Datawatch components and technologies in their own solutions.

Monarch, Monarch Data Pump, Redwing, Q-Support and Quetzal are trademarks of Datawatch Corporation. All other company or product names are trademarks or registered trademarks of their respective owners.