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DATATRAK International Reports Fourth Quarter and Full Year Results for 2007
Date:2/26/2008

The gross profit margin for the fourth quarter was 48% compared to 66% the same period a year ago. The decline in gross profit margin continues to be the result of the significant decrease in revenue partially offset by a 28% reduction in direct costs.

DATATRAK's backlog at December 31, 2007 was $13.0 million and backlog currently stands at approximately $12.6 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.

"The year of 2007 proved to be a challenging one for DATATRAK, as the clinical trials market was not as responsive or timely to our offerings as we had anticipated, despite the fact that the completeness and functionality of our technology platform has been recognized by groups such as Forrester, Gartner, NTT DATA and multiple experienced clients," stated Dr. Jeffrey A. Green, President and Chief Executive Officer of DATATRAK International, Inc. "Despite the delays with the traction of our platform in the marketplace, signs abound that this industry will eventually gravitate to a broad 'eClinical' set of offerings and will even move beyond that with linkages to patient health information systems and the establishment of longitudinal registry information capabilities. DATATRAK possesses the most seamless capabilities available in this market, and when coupled with our broad set of applications, we remain confident that we will be able to capitalize on
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SOURCE DATATRAK International, Inc.
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