US Dataworks, Inc. Announces Fiscal 2008 Financial Results

- Company Restructuring Near Completion -



HOUSTON, June 30  /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a leading developer of payment processing solutions, today announced financial results for its fiscal 2008 fourth quarter and year-end results ended March 31, 2008.

Revenues for the fourth quarter ended March 31, 2008 were $1,591,209 compared with revenues of $2,312,926 for the same period a year ago.  Loss from operations for the fourth quarter was $4,617,982 compared to a loss of $1,159,698 for the fourth quarter ended March 31, 2007.  Net loss for the fourth quarter was $4,408,665 or $(0.14) per share, compared to a net loss of $1,308,655 or $(0.04) per share, for the corresponding period in the prior year.

Revenues for the year ended March 31, 2008 were $5,717,593 compared with the revenues of $7,069,575 for the same period a year ago.  Loss from operations for the year ended was $12,685,632 which included a non-cash charge for goodwill impairment of $10,112,931, compared to an operating loss of $2,964,826 for the year ended March 31, 2007.  Net loss for the year ended was $11,674,891 or $(0.37) per share, compared to a net loss of $3,306,009 or $(0.11) per share, for the corresponding period in the prior year.

"Fiscal 2008 was a challenging year for our Company," said Charles E. Ramey, Chief Executive Officer of US Dataworks. "That being said, we are close to completing a major restructuring, which included a streamlining of the staff. We enter fiscal 2009 a leaner operation with new opportunities, including a new version of our proprietary software: Clearingworks 3.0. We believe the new structure will put us on the pathway toward profitability."

Mr. Ramey concluded, "I continue to believe that the demand for our software will continue to grow steadily with anticipated ramp up in production of our existing and new customers."

A conference call is scheduled for today, at 11:00 AM EDT.  Interested parties may participate in the call by dialing [phone]; international callers dial [phone] about 5-10 minutes prior to 11:00 AM EDT.  The conference call will also be available on replay starting at 2:00 pm EDT on June 30, 2008, and ending on July 7, 2007.  For the replay, please dial [phone] (replay account #269, replay conference #289978).  The access number for the replay for international callers is [phone] (replay account #269, replay conference #289978).

About US Dataworks, Inc.

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.

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to statements regarding the anticipated benefits of the Company's restructuring, the Company's profitability and the anticipated demand of the Company's products, the market demand for   our products 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, our ability to complete the restructuring, the impact of alternative technological advances and competitive products, market fluctuations and other risks detailed from time to time in the SEC reports of US Dataworks, including its annual report on Form 10-K for the period ended March 31, 2007 and its quarterly report on Form 10-Q for the period ended December 31, 2007.  These forward-looking statements speak only as of the date hereof.  US Dataworks disclaims any obligation to update these forward-looking statements.

                           - Tables to Follow -



                            US DATAWORKS, INC.
                          INCOME STATEMENT DATA

                                  Three Months Ended         Year-Ended
                                 3/31/08     3/31/07     3/31/08     3/31/07
  Revenues
   Software licensing revenues   (7,778)      80,267     282,045    689,425
   Software transactional
    revenues                    623,087      357,029   1,848,130  1,495,617
   Software maintenance
    revenues                    238,340      123,127     896,358    438,803
   Software service revenues    866,842      752,503   2,820,332  3,445,730
   ATM Equipment Revenues            --    1,000,000          --  1,000,000
                              1,720,481    2,312,926   5,846,865  7,069,575

  Discount on Sales            (129,272)          --    (129,272)        --
  Net Revenue                 1,591,209    2,312,926   5,717,593  7,069,575

  Cost of sales                 495,243    1,299,209   1,964,555  2,859,063
   Gross profit               1,095,966    1,013,717   3,753,038  4,210,512

  Operating Expenses
   General and administrative 1,484,949    2,134,547   6,144,484  7,031,224
   Depreciation and
    amortization                 48,252       38,868     181,255    144,114
   Goodwill Impairment        4,180,747           --  10,112,931         --

  Total operating expenses    5,713,948    2,713,415  16,438,670  7,175,338

  (Loss) from operations     (4,617,982)  (1,159,698)(12,685,632)(2,964,826)

  Other income (expense)
   Financing costs              (40,000)     (46,200)   (152,680)   (46,200)
   Interest expense            (288,151)      (6,402    (458,675)  (226,820)
   Interest expense -
    related parties             (10,668)     (10,938)    (47,256)   (21,875)
   Loss on disposition of
    assets                           --           --     (44,231)        --
   Litigation settlements            --           --          --    222,600
   Other income (expense)        11,585           --      19,346     10,490
   Gain on Derivative
    liabilities                (536,571)     (85,418)  1,694,237   (279,378)

  Total other income (expense)  209,317     (148,958)  1,010,741   (341,183)

  Loss before provision for
   income taxes              (4,408,665)  (1,308,656)(11,674,891)(3,306,009)

  Provision for income taxes         --           --
  Net (loss)                 (4,408,665)  (1,308,656)(11,674,891)(3,306,009)

  Basic and diluted loss
   per share                     $(0.14)      $(0.04)     $(0.37)    $(0.11)

  Basic and diluted weighted
   - average shares
   outstanding               32,062,962   31,444,647  31,744,212 30,717,707



                            US DATAWORKS, INC.

                              BALANCE SHEET

                              March 31, 2008

  ASSETS

  Current assets:
  Cash and cash equivalents                             $903,393
  Accounts receivable, trade                             856,261
  Prepaid expenses and other current assets              145,915

  Total current assets                                 1,905,569

  Property and equipment, net                            478,687

  Goodwill, net                                        4,020,698

  Other assets                                           357,124

  Total assets                                        $6,762,078

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
  Notes payable                                          $35,279
  Deferred revenue                                       200,833
  Accounts payable                                       271,677
  Accrued expenses                                       366,538
    Interest payable - related parties                    18,188
    Derivative - Compounded Embedded                     353,749
    Derivative - Warrants                                267,532

  Total current liabilities                            1,513,796

    Long term Note Payable                                52,918
    Long term Note Payable - Related Party               500,000
    Long term convertible promissory note,
     net unamortized discount of $1,995,636            2,004,364

      Total long term liabilities                      2,557,282

  Total liabilities                                   $4,071,078


    Stockholders' Equity:

  Convertible Series B preferred stock, $0.0001
   par value; 700,000 shares authorized; 109,933
   shares issued and outstanding; $3.75 liquidation
   preference, dividends of $293,596 in arrears               55

  Common stock, $0.0001 par value; 90,000,000
   shares authorized; 32,062,962 shares issued and
   outstanding                                             3,206
    Additional paid-in capital                        64,778,977
    Accumulated deficit                              (62,091,238)

    Total stockholders' equity                         2,691,000

    Total liabilities and stockholders' equity        $6,762,078



   CONTACTS:

   Charles Ramey, CEO       Donald C. Weinberger/Alisa Steinberg (media)
   US Dataworks, Inc.       Wolfe Axelrod Weinberger Assoc. LLC
   [phone]           Tel. [phone]  Fax [phone]


DATASOURCE: US Dataworks, Inc.



CONTACT:  Charles Ramey, CEO of US Dataworks, Inc., [phone]; or

media, Donald C. Weinberger or Alisa Steinberg, both of Wolfe Axelrod

Weinberger Assoc. LLC, [phone], fax, [phone], for US

Dataworks, Inc.



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

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