Divestiture of Radiant Document Solutions Group Marks Strategic Step for Digital Asset Management Leader to Focus on Its Core Business WESTBOROUGH, Mass., May 8 /PRNewswire-FirstCall/ -- ClearStory Systems, Inc. (OTC:CSYS) (BULLETIN BOARD: CSYS) , an established provider of digital asset management (DAM) solutions, today announced the closing of its previously announced definitive agreement with Datawatch Corporation (NASDAQ:DWCH). Datawatch has acquired the Radiant Document Solutions portfolio of assets and intellectual property that include Radiant Business Document Server Suite and Radiant MailManager. This divestiture will provide ClearStory with the focus and additional funding to aggressively pursue its core solutions for digital media -- photos, graphics, marketing materials, multi-media, presentations, video -- the fastest growing content across a wide range of industries. According to Robert Markham, Principle Analyst at Forrester Research, "Widespread use of rich media has spurred the growth of the Digital Asset Management (DAM) market not only because today's lean businesses can't afford to recreate digital assets for every business purpose, but also due to the extended and varied uses of rich media across multiple channels including, web, handheld device, wireless phone, and point-of-sale kiosk." ClearStory has proven its DAM leadership with the launch in early 2005 of its next-generation Enterprise Media Server (EMS), a pure J2EE developer platform for the creation of digital media applications. Later that year, ClearStory announced a new version of the product with extended database and application server support, including support for IBM environments (WebSphere Application Server, DB2 Universal Database, and integration with DB2 Content Manager). EMS was so well received by the market that ClearStory developed its next generation DAM application, ActiveMedia on the EMS platform. In late 2005, ClearStory released ActiveMedia 7, a richly functional, enterprise-class software application for managing the digital media communications supply chain -- from creation to delivery. ActiveMedia is arguably the only digital asset management solution on the market today that truly supports a multi-tenant hosted environment. This is an attractive solution for advertising agencies, marketing services and video production companies seeking a digital business strategy that can extend to clients. "Branding is a burning issue that is driving the need to access digital assets across the enterprise and is compelling marketing and communications departments to adopt marketing asset management strategies," added Markham, "This is by far one of the highest growth segments within the DAM market. Companies focusing on this area have a real opportunity." ActiveMedia Essentials, a new ClearStory business unit that provides DAM as a shared hosted service, leverages the multi-tenant capability of its underlying technology. Launched in May, ActiveMedia Essentials offers an affordable, pay-as-you-go solution for the management and delivery of advertising and marketing content for marketing departments, ad agencies or smaller companies. With nothing more than a web-browser, companies are able to quickly organize and manage digital media with secure anywhere, anytime availability for sales teams, distributors, partners, agencies, or other external users. "With the funding made available and the acquisition finalized, ClearStory is ideally positioned within the growing DAM market to achieve and sustain strong revenue growth," said Henry F. Nelson, president and CEO of ClearStory Systems. ClearStory is enjoying a growing customer base, with such new customer acquisitions over the last six months as The Jackson Laboratory, T.A.C. Worldwide, Grace and Wild, Mannington, Raytheon Missile Systems, and a major win at one of the world's preeminent media companies. Additionally ClearStory customers such as National Geographic Channels and Leiden University are adopting ClearStory's next-generation enterprise DAM application, ActiveMedia 7. 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. 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 intent to achieve and sustain strong revenue growth in the DAM market, our plan to aggressively pursue core solutions, 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, Inc. Ripple Effect Communications Susan Worthy Valerie Harding (Media) (508) 870-4225 (617) 536-8887 DATASOURCE: ClearStory Systems, Inc. CONTACT: Susan Worthy of ClearStory Systems, Inc., +1-508-870-4225, ; or Media, Valerie Harding of Ripple Effect Communications, +1-617-536-8887, Web site: http://www.datawatch.com/ Web site: http://www.clearstorysystems.com/

Copyright