FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * Watson Robert Eugene   2. Issuer Name and Ticker or Trading Symbol STREAMLINE HEALTH SOLUTIONS INC. [STRM] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) President & CEO (Last) (First) (Middle) C/O STREAMLINE HEALTH, 10200 ALLIANCE ROAD, SUITE 200 3. Date of Earliest Transaction (Month/Day/Year) 01/31/2011 (Street) CINCINNATI, OH 45242 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock $.01 Par Value (1) 01/31/2011   M   50,000 A $ 0.01 50,000 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Right to Purchase (2)

$ 0.01

01/31/2011

A

50,000

01/31/2011(3)

01/31/2013

Common Stock $.01 Par Value

50,000

$ 0.01

50,000

D

Stock Option (2)

$ 2

01/31/2011

A

250,000

02/28/2011(4)

01/31/2021

Common Stock $.01 Par Value

250,000

$ 2

250,000

D

Stock Option (2)

$ 3

01/31/2011

A

150,000

01/31/2012(5)

01/31/2021

Common Stock $.01 Par Value

150,000

$ 3

150,000

D

Right to Purchase

$ 0.01

01/31/2011

M

50,000

01/31/2011

01/31/2011

Common Stock $.01 Par Value

50,000

$ 0.01

0

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Watson Robert Eugene C/O STREAMLINE HEALTH 10200 ALLIANCE ROAD, SUITE 200 CINCINNATI, OH 45242	X		President & CEO

Signatures

Matthew D. Rolfes by power of Atty.		02/02/2011
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	These 50,000 shares were issued pursuant to the right to purchase transaction on January 31, 2011.
(2)	This award was not granted pursuant to any pre-existing Company equity plan. This award was made as an inducement grant pursuant to an exception found in NASDAQ marketplace rule 5635(c)(4).
(3)	All shares under this right to purchase are eligible for immediate exercise on January 31, 2011.
(4)	The options shall vest and become exercisable in thirty-six substantially equal monthly installments, commencing with the date that is one month from January 31, 2011, during the first three years of employment by the Company.
(5)	The options shall vest and become exercisable in five equal annual installments on each of the first, second, third, fourth and fifth anniversaries of January 31, 2011.

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