US Dataworks Enters Into Strategic Alliance With Top Global Financial Services Company to Offer ARC Solution

US Dataworks Enters Into Strategic Alliance With Top Global
Financial Services Company to Offer ARC Solution 


HOUSTON, March 21  /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a
leading developer of payment processing software, announced today that it has
entered into a strategic marketing agreement with a leading global financial
services firm to jointly offer an Accounts Receivable Conversion (ARC)
processing solution to the market.

US Dataworks will work with the top 20 financial services firm to co- market a
comprehensive ARC solution that incorporates US Dataworks industry- leading
Clearingworks(TM) capabilities of MICR parsing, eligibility sorting and return
processing.  Fees for the ARC platform will be charged through an all inclusive
per transaction price, thus requiring virtually no up-front investment from the
end-user.

This new alliance is the second of its kind for US Dataworks.  Last fall the
company entered into a similar co-marketing agreement with JPMorgan Chase after
the bank launched an ARC processing solution, developed in part by US
Dataworks, that enables retailers and billers to covert paper checks into
electronic transactions.

"Having secured these two marquee alliances, US Dataworks is establishing a
niche for itself with financial services firms that are eager to offer their
clients a fully automated end-to-end ARC solution," said Charles Ramey,
chairman and CEO of US Dataworks.

Ramey added that there is a tremendous market for US Dataworks in ARC services,
especially since the firm offers a unique pricing solution that does not
require a significant capital investment to the end-user's payment operations.

"With little or no up-front cost, we are able to offer a premium ARC solution
to customers in a wider variety of industries, particularly the middle market
and public sectors, which have been slow to adopt ARC because of its perceived
cost of entry," said Ramey.

Recent changes in the National Automated Clearing House (NACHA) rules coupled
with the passage into law of Check-21 now make it possible for banks, retailers
and billers to electronically process paper checks and all other forms of
payments.  The transition to electronic processing is expected to create
greater efficiencies and immediate cost savings for the retail and remittance
industries.

About US Dataworks

US Dataworks is a developer of payment processing solutions, focused on the
financial services market, federal, state and local governments, billers and
retailers.  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.  For more information, visit the company's
website at http://www.usdataworks.com/ .

Except for the historical information contained herein, the matters set forth
in this press release, including, but not limited to the statements regarding
the growth and potential for the ARC market and the effect capital investment
may have of a company's adoption of an ARC solution 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,
2004 and its quarterly report on Form 10-QSB/A for the period ended June 30,
2004.  These forward-looking statements speak only as of the date hereof.  US
Dataworks disclaims any obligation to update these forward-looking statements.

   For more information, contact:
   John Figone - US Dataworks
   [phone] ext. 250
   Terrie James - media contact
   [phone]
   
   Ken Dennard - investor contact
   [phone]
   

DATASOURCE: US Dataworks, Inc.



CONTACT:  John Figone of US Dataworks, Inc., [phone], ext. 250;

or media, Terrie James, [phone], or  , for US

Dataworks, Inc.; or investors, Ken Dennard, [phone], or

 , for US Dataworks, Inc.



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

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