Datawatch Introduces Monarch™ Version 10

World's Leading Report Mining and Analysis Solution Offers Unprecedented Microsoft Excel® Integration, Breakthrough Analytic Power, Enhanced Data Acquisition and Easier Model Building

Chelmsford, MA - October 20, 2008 - Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management (EIM), today introduced Monarch V10, the latest upgrade to its flagship report mining and analysis solution. With Monarch V10, every major aspect of Monarch has been dramatically improved. This latest version provides new analytic and styling capabilities, enhanced Excel integration, access to new data sources, as well as easier model building.

An affordable, programming-free Business Intelligence (BI) solution, Monarch V10 allows users to unlock critical data buried in reports and other business documents without programming, as well as import and combine information from additional data sources, such as PDFs, databases or spreadsheets. Monarch V10 is designed to help users work smarter and faster by giving them the information they need, in the format they want, to make better business decisions.

"Titan Tool has been a dedicated Monarch user for eight years. With Monarch V10, Datawatch continues to deliver superior BI capabilities, providing exciting new features that give us greater analytic power. The new version will help us extract more benefit from Excel than ever before," said Eric Estes, director of IS at Titan Tool, a New Jersey-based manufacturer of paint spray equipment. "Approximately 95 percent of our Monarch users also use Excel for analysis. With Monarch V10, we are particularly excited about the ability to burst summary data as separate spreadsheets or workbooks, enabling us to distribute our Monarch summary data by specific department or location. With the click of a mouse, our end users are able to eliminate the need to work with unnecessary data and to focus solely on their area of expertise; something that wouldn't be possible with traditional BI solutions."

Key Monarch V10 Features:

• Enhanced Excel Integration: Monarch V10 delivers the fastest, easiest Excel-based BI on the market, allowing users to export Monarch table data as Pivot Tables directly in Excel with no additional work required. Users also have the ability to export summary data into separate spreadsheets or workbooks based on simple key value changes. This enables users to save significant time by focusing solely on the data that is relevant to their individual functions, locations or departments.
• Analytics at your Fingertips: New filtering and summary capabilities give users more control and customization capabilities. An entirely new variety of Monarch summary analysis is now also possible, complete with optimized formatting when exported to Excel. Monarch V10 Professional Edition (Monarch V10 Pro) also features a new Table Verify function, which performs data quality checks and alerts users to data errors.
• Publishing and Exporting with Style: Monarch V10 delivers powerful new report styling capabilities to improve data presentation. Descriptive titles can now be included within the exported Excel and PDF summary analysis. Users can choose from standard colors or select from a custom color palette with up to 64,000 choices for summary coloring, create custom display formats for the new time intervals introduced in Monarch V10 and more.
• Easier Model Building: Monarch V10 will now help define traps for users, making the process of building model templates more intuitive than ever. All users have to do is check off sample lines from a report, and Monarch V10 will generate a trap. Monarch V10 also features color-coded templates to help expedite model building and offers enhancements specifically designed to more effectively handle missing report data.
• New & Improved Data Sources (PRO ONLY): Monarch V10 Pro enables users to print from any Windows application using the open, Microsoft-developed XPS technology and import the data directly into Monarch. PDF import has been dramatically improved, opening PDFs twice as fast as was previously possible. Monarch V10 Pro also offers brand new data sources-such as Excel 2007 xlsm and Access 2007 accdb files.

"With the global economy in upheaval, it is more critical than ever before that users have the ability to extract maximum value from the assets that already exist within their organization, and that they be able to put the right information in the hands of the right people when they need it," said John Kitchen, Datawatch senior vice president and CMO. "With Monarch V10, we are delivering an effortless, programming-free BI solution that will help companies gain insight into operations and customers, better manage costs, spot opportunities for growth and empower users with more Excel-based capabilities than ever-all without the cost, exhaustive training and programming associated with traditional BI solutions."

REQUIREMENTS AND COMPATIBILITY

Monarch V10 Standard and Monarch V10 Pro Editions are compatible with Windows XP Home/Professional SP2, Windows 2003 Server SP1, Windows Vista and Windows 2008 Server. Microsoft .NET Framework 3.0 or higher is required. Monarch V10 installs in minutes and can read model files and portable report files created with earlier versions of Monarch.

PRICING AND AVAILABILITY

Monarch V10 Standard and Monarch V10 Pro Editions are available immediately. Monarch V10 Standard Edition is $699 MSRP for a single user and $2,649 for a network of four users. Monarch V10 Pro Edition is $849 MSRP for a single user and $3,399 for a network of four users. A single user upgrade from Monarch V9 Standard Edition to Monarch V10 Standard Edition is $209. A single user upgrade from Monarch V9 Standard Edition to Monarch V10 Pro Edition is $329. A single user upgrade from Monarch V9 Pro Edition to Monarch V10 Pro Edition is $239. Monarch is available through leading resellers, by calling Datawatch directly at (800) 445-3311 or at www.datawatch.com.

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ABOUT DATAWATCH CORPORATION

Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Business Intelligence (BI) and Enterprise Information Management (EIM), helps companies make better decisions and solve business problems by simplifying access to and analysis of information. Unique among BI 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 35,000 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.

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Investor Contact:

Datawatch Investor Relations
(978) 441-2200 ext. 8323
investor@datawatch.com

Media contacts:

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Greenough Communications
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Phone: (617) 275-6528

Lisa G. Kilpatrick
Manager, Marketing Communications and Public Relations
lisa_kilpatrick@datawatch.com
Phone: (978) 441-2200, ext. 8240
Fax: (978) 453-4443

Datawatch and the Datawatch logo 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.