Hampton Roads Sanitation District Selects Datastream 7i to Manage
Wastewater System

HRSD Selects Datastream 7i Based on its Comprehensive Asset Performance Management
Functionality and Configurability 

GREENVILLE, S.C., Dec. 21, 2005 — Datastream Systems, Inc. today announced that the Hampton Roads Sanitation District (HRSD) has selected the Datastream 7i Asset Performance Management solution to manage assets across 13 wastewater treatment plants spanning 17 cities and counties in Virginia.

After an extensive evaluation of leading asset management solutions, HRSD selected Datastream 7i because it best met its requirements for broad asset management functionality and configurability. Datastream 7i also provides extensive support for service-oriented architecture and Web services, which delivers additional advanced capabilities including:

• Geographic Information System (GIS) integration. Datastream 7i comes integrated with best-of breed applications from ESRI, the world leader in GIS. This enables end-users to use GIS as a de facto product feature of Datastream 7i, rather than as a separate application.
• Native Support for Mobile Deployment.  With comprehensive support for Web services, Datastream 7i natively supports mobile deployment, which eliminates the need to include third-party mobile vendors in the deployment.

“GIS and mobile are two of the most important capabilities for organizations like HRSD, which must maintain geographically distributed assets,” said Datastream CEO Larry Blackwell. “The fact that Datastream 7i provides a fully integrated solution that includes these capabilities radically reduces complexity and total cost of ownership.”

By providing fully integrated GIS and mobile functionality, Datastream 7i reduces licensing requirements and enables customers to work with one vendor and one consolidated solution. This compares favorably to solutions that rely on a “partnering” strategy to deliver GIS and mobile, which requires customers to work with multiple vendors, each with their own licensing, implementation and support schemes.

Datastream expects to begin to record revenue from this agreement in the fourth quarter of its 2005 fiscal year.

About HRSD
HRSD, a political subdivision of the Commonwealth of Virginia, was created by public referendum in 1940 and currently serves 1.6 million people in 17 cities and counties. Its mission is to prevent pollution, protect public health and support community development by providing wastewater collection, treatment and related services.

About Datastream Systems, Inc.
Datastream Systems, Inc. provides Asset Performance Management software and services to enterprises worldwide, including more than 60 percent of the Fortune 500. Datastream's solutions combine world-class asset management functionality with advanced analytics to deliver a powerful platform for optimizing enterprise asset performance.

By using Datastream's solutions, customers can maintain and manage capital assets -- such as manufacturing equipment, vehicle fleets and buildings -- and create analyses and forecasts so they can take action to improve future performance. Datastream's flagship product, Datastream 7i, delivers a complete Asset Performance Management infrastructure by combining an Internet, Web services architecture with broad enterprise asset management functionality, integrated procurement, advanced analytics and multi-site capability.

Datastream was founded in 1986 and has customers in more than 140 countries. For more information, visit http://www.datastream.net/. 

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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, including statements regarding our financial performance for the remainder of 2005 and in 2006. Factors that could cause actual results to differ materially include, but are not limited to: 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, 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.

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