Item 2.05 Costs Associated with Exit or Disposal Activities

On April 2, 2009, Datawatch Corporation ("Datawatch") responding to the current business climate, initiated actions to reduce its workforce by notifying approximately 12 employees that their employment is being terminated by Datawatch. The terminations are expected to be completed by the end of the third fiscal quarter of 2009, and will result in total cash severance charges of approximately $96,000. These charges will be incurred for non-recurring employee-related termination benefits, including severance payments and continuation of medical insurance benefits.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements contained in this press release, including those regarding the work force reductions and total estimated severance charges which are "forward-looking statements" that do not describe historical facts constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any such statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. The factors that could cause actual future results to differ materially from current expectations include the following: risks associated with the uncertainty of the current economic climate; risks associated with fluctuations in quarterly operating results; Datawatch's dependence on its principal products; risks associated with international sales; risks associated with distributor sales; risks associated with acquisitions; an unfavorable result in any litigation; market acceptance of new products; dependence on the introduction of new products and possible delays in those introductions. Further information on factors that could cause actual results to differ from those anticipated is detailed in various publicly-available documents, which include, but are not limited to, filings made by Datawatch from time to time with the Securities and Exchange Commission, including but not limited to, those appearing in the Company's Annual Report on Form 10-K for the year ended September 30, 2008 or its Quarterly Report on Form 10-Q for the quarter ended December 31, 2008. Any forward-looking statements should be considered in light of those factors.

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