GREENVILLE, S.C. - February 4, 2003 — Datastream Systems, Inc. (Nasdaq: DSTM) a leading provider of enterprise asset management (EAM) solutions, today announced results for the Company's fourth quarter and fiscal year ended December 31, 2002.

Total revenues for the fourth quarter of 2002 were $23.6 million compared with $21.8 million for the fourth quarter of the prior year, representing an 8% increase. Total software license revenues for the fourth quarter of 2002 were $7.4 million compared to $6.8 million for the fourth quarter of the prior year, representing a 9% increase. Net income for the fourth quarter 2002 was $1.2 million compared with $246,823 for the same period last year, an increase of more than 350%. Earnings per share were $0.06 per share compared with $0.01 per share for the same period last year.

Sequentially, fourth quarter 2002 total revenues increased 7% from third quarter 2002 revenues of $22.0 million. Fourth quarter 2002 software license revenues increased 23% from third quarter 2002 total software license revenues of $6.0 million. Net income for the fourth quarter 2002 increased more than 225% from net income of $340,733, or $0.02 per share, in the third quarter of 2002.

Total revenues were $90.0 million for the fiscal year ended December 31, 2002, compared with $89.5 million for the fiscal year ended December 31, 2001. Software license revenue for the fiscal year ended December 31, 2002 was $26.0 million compared with $25.8 for the same period last year. Net income was $1.8 million, or $0.09 per share for the fiscal year ended December 31, 2002 compared to a net loss of $(14.5) million, or $(0.71) per share for the year ended December 31, 2001.

Larry Blackwell, Datastream's chief executive officer, commented, "The fourth quarter was the capstone for 2002, with revenue and license growth led by Datastream's flagship product, Datastream 7i™. This success drove improved profitability and operating cash flow, and we expect the upcoming March release of Datastream 7i to continue to deliver increased returns to both customers and shareholders."

The Company's cash and cash equivalents totaled $34.7 million at December 31, 2002, an increase of 7% from $32.4 million at September 30, 2002 and a 37% increase from $25.4 million at December 31, 2001. Days sales outstanding, or DSOs, were at 69 days for the fourth quarter 2002, the best result since the second quarter of 1996, and represents an improvement of two days over the third quarter 2002 and three days over the fourth quarter in 2001. Net cash provided by operating activities for the fourth quarter 2002 was approximately $3.6 million, representing the ninth consecutive quarter of positive operating cash flow.

Datastream 7i license sales grew to $4.1 million in the fourth quarter 2002, representing a 37% increase from the third quarter 2002 and a 28% increase in license revenue from the same quarter 2001. For the fourth quarter 2002, Datastream 7i license revenue represented 56% of the Company's license revenue mix, up from 47% of the license revenue mix for the same quarter of 2001.

Conference Call
Datastream will host a conference call today at 4:45 p.m., EST with any and all interested persons to review its performance and discuss its financial expectations and strategic direction. Please dial 1-800-360-9865 and ask for the Datastream teleconference. For international callers, the dial-in number is 1-973-694-6836. The replay will be available from 6:00 p.m., EST on February 4, 2003 until 11:59 p.m., EST on February 6, 2003. The dial-in number for the replay is 1-800-428-6051 and the pass code is 247107. For international callers, the dial-in for the replay is 1-973-709-2089. Datastream's conference call will be accessible today via live audio Webcast at 4:45 p.m., EST at www.datastream.net/investor.

About Datastream Systems, Inc.
Datastream Systems, Inc. (NASDAQ: DSTM) provides enterprise asset management (EAM) software, automated procurement and supporting services to organizations worldwide, including more than 60 percent of the Fortune 500. Customers rely on Datastream's products and services to drive down operating costs and improve productivity through better management of capital assets.

Datastream's flagship product, Datastream 7i , was the first product in its class to combine an Internet architecture with broad EAM functionality. Datastream 7i integrates with the company's iProcure industrial procurement network to provide customers with a complete EAM solution that maximizes return on investment in capital assets, while minimizing the total cost of application ownership. Datastream was founded in 1986 and has customers in more than 140 countries. For more information, please visit www.datastream.net.

Consolidated Statement of Operations (unaudited)
	Three Months Ended December 31,		Twelve Months Ended December 31,
	2002	2001	2002	2001
Software Product	$ 7,355,652	$ 6,835,466	$ 26,026,478	$ 25,782,578
Services and support	16,260,642	14,966,824	63,975,770	63,742,715
Total Revenues	$ 23,616,294	21,802,290	$ 90,002,248	89,525,293
Cost of Software Product	385,898	224,708	1,246,353	1,383,492
Cost of Services and Support	7,639,846	7,906,143	31,510,472	33,881,038
Cost of Sales	8,025,744	8,130,851	32,756,825	35,264,530
Gross Profit	15,590,550	13,671,439	57,245,423	54,260,763
Operating Expenses:
Sales & Marketing	8,188,060	8,751,308	33,381,381	36,228,614
Research & Development	2,733,792	2,569,779	10,682,960	12,383,942
General & Administration	3,154,844	2,263,118	10,886,174	9,816,331
Goodwill Amortization	-	-	-	2,266,247
Goodwill Impairment	-	-	-	9,785,330
Operating Expenses	14,076,696	13,584,205	54,950,515	70,480,464
Operating Income (loss)	1,513,854	87,234	2,294,908	(16,219,701)
Other Income, Net	275,078	158,038	543,121	622,429
Income (loss) Before Provision for Income Taxes	1,788,932	245,272	2,838,029	(15,597,272)
Provision for Income Taxes	632,169	(1,551)	997,538	(1,078,023)
Net Income (loss)	$ 1,156,763	$ 246,823	$ 1,840,491	$ (14,519,249)
Basic net income (loss) per share	$ .06	$ .01	$ .09	$ (.71)
Diluted net income (loss) per share	$ .06	$ .01	$ .09	$ (.71)
Basic weighted average common shares outstanding	20,095,222	20,141,668	20,138,137	20,403,166
Diluted weighted average common shares outstanding	20,438,647	20,327,749	20,557,985	20,403,166

Assets
	December 31, 2002	December 31, 2001
Cash and Cash Equivalents	$ 34,721,471	$ 25,396,939
Accounts Receivable, Net	18,116,426	17,483,350
Unbilled Revenue	2,003,107	2,675,670
Income Tax Receivable	594,647	981,488
Other Current Assets	3,404,752	4,115,547
Total Current Assets	58,840,403	50,652,994
Investments	2,000,000	2,000,000
Net Property and Equipment	10,696,968	12,031,550
Deferred income taxes	5,287,633	6,664,009
Other long-term assets	83,758	68,750
Total Assets	$ 76,908,762	$ 71,417,303

Liabilities And Stockholders Equity
	December 31, 2002	December 31, 2001
Deferred Revenue	$ 15,105,756	$ 12,330,840
Other Current Liabilities	12,261,724	10,462,939
Total Stockholders' Equity	49,541,282	48,623,524
Total Liabilities and Stockholders' Equity	$ 76,908,762	$ 71,417,303

Summary Consolidated Statement of Cash Flows (unaudited)
	Twelve Months Ended December 31
	2002	2001
Cash Flows from operating activities:
Net Income (loss)	$ 1,840,491	$ (14,519,249)
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation	3,962,947	4,440,513
Goodwill Amortization	-	2,266,247
Goodwill Impairment	-	9,785,330
Other operating activity adjustments	7,318,838	12,679,937
Net cash provided by operating activities	13,122,276	14,652,778
Net cash used in investment activities	(2,628,365)	(2,516,414)
Net cash used in financing activities	(595,295)	(1,382,489)
Foreign currency translation adjustment	(574,084)	(844,451)
Net increase in cash and cash equivalents	9,324,532	9,909,424
Cash and cash equivalents at beginning of period	25,396,939	15,487,515
Cash and cash equivalents at end of period	$ 34,721,471	$ 25,396,939