DATATRAK International, Inc. Announces First Quarter Results for 2009

Restructuring Plan Yields Positive Results

CLEVELAND, May 13 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. , a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the first quarter of 2009.

Revenue for the first quarter of 2009 remained relatively constant at $2,086,000 compared to $2,088,000 in the same period of 2008. Gross profit margin improved to 77% for the three months ended March 31, 2009 compared to 55% for the first three months of 2008. The improvement in the Company's gross margin reflects a 49% reduction in direct costs.

For the three months ended March 31, 2009, DATATRAK's loss from operations was $(787,000) compared to $(2,225,000) in the first quarter of the prior year. The current year first quarter loss of $(787,000) includes $634,000 of severance charges related primarily to the separation of two executive officers of the Company. Selling, general and administrative expenses decreased approximately $1.2 million in the first quarter of 2009 compared to the first quarter of 2008. Excluding severance charges from both comparable periods, DATATRAK's loss from operations would be $(153,000) in the current year first quarter compared to $(2,199,000) in the same period last year. Net loss for the first quarter of 2009 was $(788,000), or $(0.06) per share on both a basic and diluted basis compared to $(2,233,000) in the first quarter of 2008, or $(0.16) per share on both a basic and diluted basis.

"We are very pleased with our first quarter results, which we believe reflect our continuing efforts to optimize our operating structure," commented Laurence P. Birch, Chairman of the Board and interim-Chief Executive Officer of the Company. "Excluding severance charges, our operating loss for the quarter was only $(153,000) compared to an operating loss of $(2,199,000) in last year's first quarter. This marks our second consecutive quarter of reaching nearly break-even results, and we believe this is an important milestone that we look forward to sharing at the DIA show in San Diego next month. Our cash balance has remained relatively constant, decreasing by only $294,000 this quarter compared to a cash decrease of $2.6 million in the first quarter of 2008. The $294,000 decrease includes the payout of approximately $150,000 for severance commitments. While our current severance commitments are significant, we believe building a strong, experienced management team is imperative to positioning the Company for success, and in turn, driving long-term shareholder value."

About DATATRAK International, Inc.

DATATRAK International, Inc. is a worldwide technology company focused on the provision of multi-component eClinical solutions and related services for the clinical trials industry. The Company delivers a complete portfolio of software products that were created in order to accelerate clinical research data from investigative sites to clinical trial sponsors and ultimately the FDA, faster and more efficiently than manual methods or loosely integrated technologies. The DATATRAK eClinical(TM) software suite can be deployed worldwide through an ASP offering or in a licensed Enterprise Transfer model that fully empowers its clients. The DATATRAK software suite and its earlier versions have successfully supported hundreds of international clinical trials involving thousands of clinical research sites and encompassing tens of thousands of patients in 59 countries. DATATRAK International, Inc.'s product suite has been utilized in some aspect of the clinical development of 16 drugs and one medical device that have received regulatory approval from either the United States Food and Drug Administration or counterpart European bodies. DATATRAK International, Inc. has offices located in Cleveland, Ohio, and Bryan, Texas. Its common stock is listed on the NASDAQ Stock Market under the ticker symbol "DATA". Visit the DATATRAK International, Inc. web site at www.datatrak.net.

Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. Factors that may cause actual results to differ materially from those in the forward-looking statements include the limited operating history on which the Company's performance can be evaluated; the ability of the Company to continue to enhance its software products to meet customer and market needs; fluctuations in the Company's quarterly results; the viability of the Company's business strategy and its early stage of development; the timing of clinical trial sponsor decisions to conduct new clinical trials or cancel or delay ongoing trials; the Company's dependence on major customers; government regulation associated with clinical trials and the approval of new drugs; the ability of the Company to compete in the emerging EDC market; losses that potentially could be incurred from breaches of contracts or loss of customer data; the inability to protect intellectual property rights or the infringement upon other's intellectual property rights; the Company's success in integrating its acquisition's operations into its own operations and the costs associated with maintaining and/or developing two product suites; delisting of the Company's common shares from the NASDAQ Capital Market; and general economic conditions such as the rate of employment, inflation, interest rates and the condition of capital markets. This list of factors is not all-inclusive. In addition, the Company's success depends on the outcome of various strategic initiatives it has undertaken, all of which are based on assumptions made by the Company concerning trends in the clinical research market and the health care industry. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.

CONTACT: Raymond J. Merk, Chief Financial Officer and Chief Operating
Officer, DATATRAK International, Inc., +1-440-443-0082 x181

Web site: http://www.datatrak.net/

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