US Dataworks Crosses Over One Billion Transactions Threshold

US Dataworks Crosses Over One Billion Transactions Threshold



HOUSTON, July 25  /PRNewswire-FirstCall/ -- US Dataworks (AMEX:UDW), a leading
developer of payment processing solutions, is proud to announce that it has
exceeded the one billion (1,000,000,000) transaction threshold using its
Clearingworks(TM) payment platform.  Clearingworks processes Accounts
Receivable Conversion (ARC) transactions, image exchange/substitute checks
(Check 21), as well as telephone-initiated and Internet-initiated transactions
for some of the largest credit card companies and financial institutions as
well as the federal government.

"To have already processed one billion transactions within an industry that is
only just now beginning to understand the power of converting paper payments
into electronic transactions is a testament to Clearingworks' outright
acceptance in the market," says CEO Charles E. Ramey.

According to numbers published by the National Automated Clearing House
Association (NACHA), a total of 1.25 billion ARC transactions were processed in
all of 2004; increasing by more than one billion transactions over the total of
ARC transactions processed in 2003.

Adds Ramey, "As the industry continues to embrace the conversion of paper
payments to electronic ones, we intend to leverage our dominance in electronic
check processing into a wider variety of payment related solutions, offering a
fully automated, end-to-end solution for every payment processing need."

ABOUT US DATAWORKS

US Dataworks is a developer of payment processing solutions, focused on
merchants, billers, Federal, State and local governments, and the Financial
Services market.  Software developed by US Dataworks is designed to enable
organizations to transition from traditional paper-based payment and billing
processes to electronic solutions that automate end-to-end processes for
accepting and clearing checks.

Except for the historical information contained herein, the matters set forth
in this press release, including, but not limited the extent to which the
Company's balance sheet has been strengthened, leadership in the ARC market has
been captured and efforts toward profitability have been continued and the
increasing of our efforts toward capturing further market share in ARC,
Check-21 and other electronic payment processing solutions are forward- looking
statements within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially, including, but not limited to, the Company's position in the
marketplace, our ability to develop and timely introduce products that address
market demand, the impact of alternative technological advances and competitive
products, market fluctuations, our ability to obtain future financing and other
risks detailed from time to time in the SEC reports of US Dataworks, Inc.,
including its annual report on Form 10-KSB/A for the period ended March 31,
2005.  These forward-looking statements speak only as of the date hereof.  US
Dataworks disclaims any obligation to update these forward-looking statements.

   Contacts:
   John Reiland, CFO
   John Figone, VP-Business Development
   US Dataworks, Inc.
   [phone]
   http://www.usdataworks.com/

   Ken Dennard, Managing Partner
   Karen Roan, Sr. Vice President
   DRG&E   [phone]


DATASOURCE: US Dataworks, Inc.



CONTACT:  John Reiland, CFO, or John Figone, VP-Business Development,

both of US Dataworks, Inc., [phone]; or Ken Dennard, Managing Partner,

or Karen Roan, Sr. Vice President, both of DRG&E, [phone], for US

Dataworks, Inc.



Web site:  http://www.usdataworks.com/ 

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