Tolleson Lumber Deploys Datastream 7i Across Manufacturing Facilities to Optimize Inventory and Asset Management.

GREENVILLE, S.C. -- Tolleson Lumber is the Latest Process Manufacturer Implementing Datastream 7i to Realize Greater Efficiencies in Purchasing, Inventory and Asset Management

Datastream Systems, Inc. (NASDAQ: DSTM) today announced that Tolleson Lumber Company, a private lumber company based in central Georgia, has deployed the Datastream 7i(TM) Asset Performance Management solution across its lumber manufacturing facilities. Tolleson Lumber is using Datastream 7i to realize greater efficiencies in inventory management and parts purchasing, as well as to optimize the performance of its assets.

Like all process manufacturers, equipment availability is critical to Tolleson Lumber. Any breakdown slows the production process, which directly impacts the bottom line. Tolleson Lumber has nearly 800 assets at its two locations in Georgia. They are involved in all aspects of the lumbering process, which includes cutting down trees, debarking them and turning them into lumber. These assets, which include machinery such as computer-controlled gangsaws, edgers and debarkers, are subject to extreme wear and tear so they must be well maintained in order for the company to maximize equipment uptime, leading to added revenue.

Prior to implementing Datastream 7i, Tolleson Lumber relied completely on paper-based processes to track maintenance history, manage inventory and purchase parts. This led to many problems. One example is that Tolleson Lumber did not have an easy way to schedule preventive maintenance nor did it have accurate asset histories on file. In order to view the history of maintenance on an asset, workers had to locate the appropriate file, and in the best-case scenario, the maintenance history would be noted there. In the worst-case scenario, the history existed only in workers' memories. In addition, Tolleson Lumber did not have visibility into its spare parts inventory across its locations, and as a result, often had redundant inventory and frequent stock-outs requiring expensive one-off purchases.

Tolleson Lumber selected Datastream 7i to help automate these processes. With Datastream 7i, Tolleson Lumber is able to automatically issue nearly 1,000 work orders per month and can log maintenance activity on assets as it occurs. The company can then use this information to schedule preventive maintenance on assets and prevent costly repairs. Tolleson Lumber currently issues about 200 preventive maintenance work orders every month.

Through the Web architecture of Datastream 7i, Tolleson Lumber is able to manage both of its warehouses under one deployment creating a single virtual pool of inventory. Because of this, the company is able to keep its inventory at an optimum level because it has a more accurate view of its spare parts. As a result of this increased visibility, the company is planning to move away from purchasing parts one at a time and purchase in bulk, resulting in cost efficiencies.

"Datastream 7i provides us with a whole new way to manage our assets and spare parts," said Bradford Price, operations engineer manager of Tolleson Lumber. "Like many process manufacturers, prior to Datastream 7i, our processes were very manual and labor-intensive. The ability to schedule preventive maintenance through Datastream 7i has made the biggest difference in our organization by allowing us to tune up our assets to prevent expensive repairs that take our assets out of commission."

Tolleson Lumber is also taking advantage of key performance indicators (KPIs) in Datastream 7i. Through the KPI feature, Tolleson Lumber is able to see a snapshot of how its assets are performing compared to pre-defined benchmarks and make more informed decisions based on this information. Tolleson Lumber selected Datastream Now!, a service designed to get customers on the fast track to implementation by offering a Datastream 7i configuration of work processes, screens, menus and reports based on the industry's best practices.

"Tolleson Lumber is the latest in a long line of process manufacturers - such as Holly Corporation, Florida Rock, Fresh Advantage, and more - to implement Datastream 7i. These companies depend on uptime of assets for revenue and thus find great value in Datastream 7i because it allows them to automate their processes and realize greater efficiencies in areas of maintenance, inventory and purchasing," said Larry Blackwell, president and CEO of Datastream Systems.

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.