DATATRAK International Prices Private Placement

DATATRAK International Prices Private Placement

CLEVELAND, Dec. 24 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. (NASDAQ:DATA), the leading and most experienced Application Service Provider ("ASP") in the Electronic Data Capture ("EDC") industry, today announced that it has agreed to the terms of a private placement financing with a group of institutional investors in the aggregate principal amount of approximately $4.6 million.

The financing will consist of the sale of 486,313 Common Shares at a price of $9.50 per share and will include the issuance to the investors of warrants to purchase a total of 72,948 Common Shares at an exercise price of $14.40 and with an expiration date of December 23, 2007. Warrants to purchase an additional 21,316 Common Shares will be granted to a placement agent who assisted the Company in the private placement. Net proceeds to the Company are anticipated to be approximately $4.4 million. In connection with the agreement executed by the parties, the Company will grant registration rights for purchased Common Shares and the Common Shares issuable upon exercise of the warrants. Closing of this private placement is dependent upon the satisfaction of customary terms and conditions.

The securities offered in the private placement have not been registered under the Securities Act of 1933 or any state securities laws, and unless so registered may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Common Shares or Warrants in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About DATATRAK International

DATATRAK International, Inc. is a worldwide ASP for the EDC industry. The Company provides a suite of software products supporting the use of DATATRAK EDC(R) and related services to the pharmaceutical, biotechnology, and medical device industries. DATATRAK EDC(R) was developed in order to deliver clinical research data from investigative sites to clinical trial sponsors faster and more efficiently than conventional, manual methods. DATATRAK EDC(R) can be deployed worldwide in either a distributed platform using laptop computers or in a centralized environment using the Internet. DATATRAK EDC(R) software and its earlier versions have successfully supported many international clinical studies involving thousands of clinical research sites and encompassing tens of thousands of patients in over 46 countries. DATATRAK International, Inc.'s product suite has been utilized in some aspect of the clinical development of 14 separate drugs 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 Bonn, Germany. Its common stock is listed on the Nasdaq Stock Market under the symbol "DATA." Visit the DATATRAK International, Inc. web site at http://www.datatrak.net/ or http://www.datatraknet.de/ .

Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. Factors that may cause actual results to differ materially from those in the forward- looking statements include the ability of the Company to absorb corporate overhead and other fixed costs in order to successfully market the DATATRAK EDC(R) software; the development and fluctuations in the market for EDC technology; continued unreliability of the Internet infrastructure; the degree of the Company's success in obtaining new contracts; the timing of payments from customers and the timing of clinical trial sponsor decisions to conduct new clinical trials or cancel or delay ongoing trials; dependence on key personnel; governmental regulation; the early stage of the Company's EDC business and operations; and general economic conditions. 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.


Source: DATATRAK International, Inc.

CONTACT: Jeffrey A. Green, Pharm.D., FCP, President and Chief Executive
Officer, +1-440-443-0082 x112, or Terry C. Black, Chief Financial Officer,
+1-440-443-0082 x110, both of DATATRAK International, Inc.; or Neal Feagans,
Investor Relations of Feagans Consulting, Inc., +1-303-449-1184

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


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