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DATATRAK International, Inc. Announces 2007 Third Quarter and Nine Month Operating Results
Date:11/8/2007

tely $1,395,000 in future years.

The gross profit margin for the third quarter was 50% compared to 70% the same period a year ago. The decline in gross profit margin continues to be mostly the result of a significant decrease in revenue offset to some degree by a 20% reduction in direct costs.

DATATRAK's backlog at September 30, 2007 was $10.7 million and backlog currently stands at approximately $11.6 million. This compares to a backlog of $12.2 million at December 31, 2006. Backlog is defined as the remaining value of signed contracts or authorization letters to commence services. The Company does not include in its backlog potential contracts or authorization letters that have passed the verbal stage, but have not been signed. All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company's future quarterly or annual revenue. Historically, backlog has been a poor predictor of the Company's short-term revenue.

"During the third quarter, we have made significant progress in the reorganization of our global marketing and sales efforts by adding key individuals in the United States and Europe with extensive experience in the clinical trials market," stated Dr. Jeffrey A. Green, President and Chief Executive Officer of DATATRAK International, Inc. "We are starting to see early positive signs of these efforts through new projects and new client relationships, though several of these new projects are not yet reflected in backlog because of signature timing. We are also seeing increasing demand for our consulting efforts as a growing number of clients on a global scale will be requiring training for Enterprise Transfer so that they can learn how to implement clinical trials independently with our eClinical Platform."

Green continued, "We are continuing to evaluate and modify our cost structure to be consistent with our
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SOURCE DATATRAK International, Inc.
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