DSTME Datastream Systems (MM)

Datastream Finalizes Earnings Restatement GREENVILLE, S.C., March 23 /PRNewswire-FirstCall/ -- Datastream Systems, Inc. (NASDAQ:DSTME) today announced that the Company has finalized its earnings restatements for each of the fiscal years ended December 31, 2001 through December 31, 2003 and for each of the quarters ended March 31 and June 30, 2004. In connection with the restatements, the Company has filed today with the Securities and Exchange Commission an amendment to its Annual Report on Form 10-K for the fiscal year ended December 31, 2003 and amendments to its Forms 10-Q for the quarters ended March 31 and June 30, 2004. Please visit http://www.sec.gov/ for copies of the amended filings. 2001 2002 2003 1Q 2004 2Q 2004 Diluted EPS, as previously reported in original filings ($0.71) $0.09 $0.19 $0.06 $0.08 Diluted EPS, restated ($0.65) $0.09 $0.18 $0.06 $0.08 Change $0.06 $0.00 ($0.01) $0.00 $0.00 On October 27, 2004, the Company disclosed diluted earnings per share of $0.05 and $0.19 for the quarter ended and nine months ended September 30, 2004, respectively. As disclosed in the Form 10-Q for the quarter ended September 30, 2004 filed today, diluted earnings per share for such periods were $0.04 and $0.19, respectively. Please visit http://www.sec.gov/ for a copy of the third quarter 2004 Form 10-Q. "We are pleased to find a net increase in earnings over the period under review. This restatement process is now behind us, and we are ready to move forward," said Larry Blackwell, Datastream's Chief Executive Officer. 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: we did not file our Form 10-Q for the quarter ended September 30, 2004, our Form 10-K for the year ended December 31, 2004, our amended Form 10-K for the year ended December 31, 2003 or our amended Forms 10-Q for the quarters ended March 31 and June 30, 2004 by the deadlines required by the Nasdaq Hearings Panel and the Nasdaq Hearings Panel has not granted us the requested extensions; even if an extension is granted for filing our Form 10-K for the year ended December 31, 2004, we may not be able to file such document before the deadline; we may not be able to comply with the other conditions for continued listing issued by the Nasdaq Hearings Panel; if the Nasdaq Hearings Panel does not grant our requested filing extensions or if we cannot comply with the conditions for continued listing, our common stock may no longer be approved for trading on 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; with respect to our review of its internal controls, we cannot be certain that we will be able to assess our internal controls were working effectively at December 31, 2004; 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, as amended, and in Datastream's Quarterly Report on Form 10-Q for the quarter ended September 30, 2004. 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. Investor Relations and Media Inquiries Andy Murphy SparkSource, Inc. 1-781-274-6061 DATASOURCE: Datastream Systems, Inc. CONTACT: Andy Murphy of SparkSource, Inc., +1-781-274-6061,

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