DATATRAK International's first-quarter 2010 revenue decreased to $1,678,000

DATATRAK International, Inc. (OTCQX: DATA), 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 2010: $1.7 million revenue, $10.7 million backlog and 82% gross profit margin; all resulting in profitability.

"We are thrilled with our first quarter results, which we believe reflect our deliberate efforts to optimize our operating structure while improving the quality of product delivery and customer service. Our unified approach embodied in DATATRAK ONE™ is receiving a warm reception in the industry, and we look forward to expanding the product portion of this offering in the coming months with the addition of a safety case manager, an enhanced local lab management system and other product enhancements," stated Laurence P. Birch, DATATRAK's Chairman of the Board. "We've stayed the course with a more efficient business model and a focus on customer service and long-term stability. Our financial results are beginning to reflect the tremendous efforts put forth by our team to strengthen the company as evidenced by our first quarter profit."

Business Highlights:

• First quarterly profit in almost five years – a direct result of restructuring efforts begun in 2008
• Continued increase in backlog
  • Backlog increased from $9.5 million at December 31, 2009 to $10.7 million at March 31, 2010
  • Represented the third quarter-over-quarter increase in backlog
• Sales pipeline expansion
  • 2010 first quarter new sales of $2.375 million represented a 225% increase over new sales of $730,000 in the same period of 2009
  • Addition of Indian CRO, Kreara Solutions Pvt Ltd. to CRO Connect Program
  • Continued addition of new clients to base
• No debt, with the exception of trade payables
• Continued marketing efforts
  • Presented at OneMedForum in San Francisco
  • Participated in 13th Annual DIA Workshop in Japan with Japanese partner, NTT DATA
  • Co-sponsored a seminar in Israel focusing on eClinical solutions for the clinical trials industry
  • Exhibited at the DIA's 22nd Annual EuroMeeting at the Grimaldi Forum in Monaco
• Chris Wilke named Chief Technology Officer
• Continued product expansion
  • Extension of existing pdf archive functionality
  • Optimization of Randomization Manager
  • Expanded trial designer utility functionality
  • Data import enhancements
  • Provision of an extendable and customizable export formatter hierarchy
  • Scripting language enhancements
  • Randomization enhancements to include minimization algorithms

Financial Highlights:

Revenue for the first quarter of 2010 decreased to $1,678,000 compared to $2,086,000 in the same period of 2009. Gross profit margin improved to 82% for the three months ended March 31, 2010 compared to 77% for the first three months of 2009. The improvement in the Company's gross margin reflects a 36% reduction in direct costs.

For the three months ended March 31, 2010, DATATRAK's income from operations was $11,000 compared to $(787,000) in the first quarter of the prior year. The current year first quarter income includes a reversal of $182,000 of severance charges related primarily to the amended separation of the former CEO of the Company. Selling, general and administrative expenses decreased approximately $152,000 in the first quarter of 2010 compared to the first quarter of 2009. Net income for the first quarter of 2010 was $9,000, or $0.00 per share on both a basic and diluted basis compared to $(788,000) in the first quarter of 2009, or $(0.06) per share on both a basic and diluted basis.