Acquisition Allows Digital Asset Management (DAM) Leader to Increase Focus on Its Core Business WESTBOROUGH, Mass., March 14 /PRNewswire-FirstCall/ -- ClearStory Systems, Inc. (OTC:CSYS) (BULLETIN BOARD: CSYS) , an established provider of digital asset management (DAM) solutions, today announced a definitive agreement with Datawatch Corporation (NASDAQ:DWCH). Under the terms of an asset purchase agreement, Datawatch Corporation will acquire intellectual property and a portfolio of assets associated with ClearStory's Radiant Document Solutions including its Radiant Business Document Server Suite and Radiant MailManager. Radiant Business Document Server (BDS) is a proven and industry-recognized system for high-volume document capture, archiving, and online presentment within financial services, insurance, and healthcare markets. Radiant MailManager is a highly scalable e-mail active archiving solution that provides complete lifecycle, compliance, and storage management for the corporate e-mail knowledge base. The boards of directors for the respective companies have approved the definitive asset purchase agreement. The purchase price under the asset purchase agreement is $4.3 million in cash at close, with an earn-out, calculated by multiplying the net revenues derived from the product sales by 30% for the next 18 months. The closing of this transaction will allow ClearStory Systems to focus on its core digital media businesses, while enabling Datawatch to immediately increase its presence and customer base in the document solutions market, including its email management and archiving solution, which is in line with Datawatch's business expansion strategy. The transaction is contingent upon certain customary closing conditions and regulatory approvals, and is expected to occur on April 14, 2006. "This acquisition provides ClearStory with the focus and funding to move forward with our vision for a leadership position in the growing digital media market," commented Henry F. Nelson, ClearStory president and chief executive officer, "Over the past two years, we have made significant investments in our digital media platform, and this transaction allows us to concentrate our development and marketing energy on leveraging that investment, which has also been the recommendation of several industry analysts." About ClearStory Systems ClearStory Systems is the leader in high-performance, content management solutions for digital media communications. ClearStory software manages the enterprise digital media supply chain -- from creation and collaboration, to lifecycle management and delivery -- to give companies a competitive advantage, marketing agility, cost avoidance, and maximum efficiency. Backed by premier customer support and service, ClearStory award-winning products are easy to use and readily align with our customers' business objectives for both a rapid return-on-investment and low total cost of ownership. Visit us at http://www.clearstorysystems.com/. About Datawatch Corporation Datawatch Corporation is a leader in the rapidly growing Information Services market space. By providing solutions that build on a Service Oriented Architecture (SOA) framework and Monarch report mining technologies, Datawatch allows organizations to access, enhance, analyze and deliver information from wherever it resides inside or outside the enterprise to solve business problems. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide. The corporate address for Datawatch is 271 Mill Road, Quorum Office Park, Chelmsford, MA 01824; telephone (978) 441-2200. More information on Datawatch and its solutions can be found at http://www.datawatch.com/ There are statements in this news release that contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including for example our ability to increase our presence and customer base in the document solutions business, our expectation that the transaction with Datawatch will close and the expected benefits to be derived from ClearStory's products and services. These forward-looking statements include all statements that are not statements of historical fact and relate to the intent, belief, plans or expectations of ClearStory Systems, their management, and their customers. Words like "plans," "intends," "believes," "signifies," "estimates," "anticipate," "will," "expect," and words of similar meaning are intended to identify forward-looking statements. Actual results may vary significantly from the forward-looking statements. For a detailed discussion of cautionary statements that may affect ClearStory's future results of operations and financial results, please refer to ClearStory's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year-ended March 31, 2005, and its Quarterly Reports on Form 10-QSB. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward- looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. CONTACTS: ClearStory Systems Ripple Effect Communications Susan Worthy Valerie Harding (Media) (508) 870-4225 (617) 536-8887 DATASOURCE: ClearStory Systems, Inc. CONTACT: Susan Worthy of ClearStory Systems, +1-508-870-4225, ; or Media, Valerie Harding of Ripple Effect Communications, +1-617-536-8887, Web site: http://www.clearstorysystems.com/ http://www.datawatch.com/

Copyright