US Dataworks, Inc. Announces Fourth Quarter and Year-End Financial Results

- Company Reports $7.1 Million in Revenue for the Fiscal Year -



HOUSTON, June 29  /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a leading developer of payment processing solutions, today announced financial results for its fiscal 2007 fourth quarter and year-end results ended March 31, 2007.

Revenues for the fourth quarter ended March 31, 2007 were $2,312,926 compared with revenues of $2,075,992 for the same period a year ago.  Loss from operations for the fourth quarter was $1,159,698 compared to an operating income of $232,130 for the fourth quarter ended March 31, 2006.  Net loss for the fourth quarter was $1,308,655 or $(0.04) per share, compared to a net loss of $47,694 or $(0.00) per share, for the corresponding period in the prior year.

Revenues for the year ended March 31, 2007 were $7,069,575 compared with the revenues of $6,975,177 for the same period a year ago.  Loss from operations for the year ended was $2,964,826 compared to an operating loss of $409,365 for the year ended March 31, 2006.  Net loss for the year ended was $3,306,009 or $(0.11) per share, compared to a net loss of $818,157 or $(0.03) per share, for the corresponding period in the prior year.

"Fiscal 2007 was one that has allowed the Company to evolve into other revenue generating businesses, which should yield dynamic results in fiscal 2008," said Charles E. Ramey, Chief Executive Officer of US Dataworks. "The source of our optimism is our new relationship with Hyundai Syscomm, which has already, in a short order, delivered initial revenues of $1.0 million. We are highly pleased with our resale agreement with Hyundai Syscomm and believe this new source of business could potentially magnify our revenues from Fiscal 2007. As our ATM /teller-less kiosk revenues expand, which are expected over the coming quarters, we anticipate approaching profitability."

"Another highlight during the fiscal year was the 64.7% improvement in our recurring, transactional-based revenues, which were $1.5 million for the year, due to new customers added during the year and a steady growth of transactions processed by our existing customers," noted Mr. Ramey.

Mr. Ramey concluded, "We believe that the demand for our software and professional services will continue to grow steadily with anticipated ramp up in production of our existing and new customers and the inevitable adoption of Back Office Conversion. In addition, we believe our alliance with Hyundai Syscomm will facilitate new channels of revenue generation utilizing our industry leading payment processing software, Clearingworks(TM). As a result, we are estimating fiscal 2008 revenues to be in the range of $12-$16 million, which is expected to produce profitability."

A conference call is scheduled for today, at 10:30 AM EDT.  Interested parties may participate in the call by dialing [phone]; international callers dial [phone] about 5-10 minutes prior to 10:30 AM EDT.  The conference call will also be available on replay starting at 1:30 pm EDT on June 29, 2007, and ending on July 6, 2007.  For the replay, please dial [phone] (replay account # 305, replay conference # 247099).  The access number for the replay for international callers is [phone] (replay account # 305, replay conference # 247099).

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 the Company's belief of the company's software's status in the marketplace, the anticipated revenue growth for fiscal year 2008, our anticipated expansion of revenues and approach toward profitability, the market demand for our products and services and the market's adoption of Back Office Conversion 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 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.
                     QUARTERLY INCOME STATEMENT DATA

                            Three Months Ended             Year-Ended
                                     as restated               as restated
                          3/31/07      3/31/06      3/31/07      3/31/06
  Revenues
    Software licensing
     revenues              80,267      841,449      689,425    2,681,478
    Software transactional
     revenues             357,029      258,589    1,495,617      908,040
    Software maintenance
     revenues             123,127      101,509      438,804      432,878
    Software service
     revenues             752,503      874,446    3,445,730    2,952,781
    ATM Equipment
     Revenues           1,000,000            -    1,000,000            -
                        2,312,926    2,075,992    7,069,575    6,975,177

  Cost of sales         1,299,209      451,820    2,859,063    1,555,776
    Gross profit        1,013,717    1,624,172    4,210,512    5,419,401

  Operating Expenses
    General and
     administrative     2,134,547    1,299,656    7,031,224    5,466,735
    Depreciation and
     amortization          38,868       92,386      144,114      362,031

  Total operating
   expenses             2,173,415    1,392,042    7,175,338    5,828,766

  (Loss) from
   operations          (1,159,698)     232,130   (2,964,826)    (409,365)

  Other income
   (expense)
    Financing costs       (46,200)          --      (46,200)    (160,001)
    Interest expense       (6,402)    (101,299)    (226,820)    (342,462)
    Interest expense -
     related parties      (10,938)          --      (21,875)          --
    Loss on extinguishment
     of debt                   --           --           --     (206,000)
      Gain/Loss on
       Derivatives        (85,418)      36,054     (279,378)     489,783
    Contingent
     liabilities loss           -     (222,600)     222,600     (222,600)
    Other income
     (expense)                  -        8,021       10,490       32,488

  Total other income
   (expense)             (148,957)    (279,824)    (341,183)    (408,791)

  Loss before provision
   for income taxes    (1,308,655)     (47,694)  (3,306,009)    (818,157)

  Provision for
   income taxes                --           --
  Net (loss)           (1,308,655)     (47,694)  (3,306,009)    (818,157)

  Basic and diluted
   loss per share          $(0.04)      $(0.00)      $(0.11)      $(0.03)

  Basic and diluted
   weighted -average
   (adjusted for
   reverse stock
   split 1:5)shares
   outstanding         31,444,647    30,046,992   30,717,707   29,684,597



                            US DATAWORKS, INC.
                          Balance Sheet Analysis
                     Fiscal year ended March 31, 2007

  ASSETS

  Current assets
   Cash and cash equivalents                                 140,276
   Accounts receivable, net allowance
    for doubtful accounts of $250,000                      2,180,029
   Prepaid expenses and other current
    assets                                                   131,913

     Total current assets                                  2,452,218

  Property and equipment, net                                480,483
  Goodwill, net                                           14,133,629
  Other assets                                                30,334

     Total assets                                         17,096,664

  LIABILITIES AND SHAREHOLDERS EQUITY
  Current liabilities
   Notes payable - related parties                           539,000
   Current portion of convertible
    promissory notes                                         256,066
   Derivative Liability - Warrants                            75,255
   Deferred revenue                                          643,895
   Accounts payable                                          920,110
   Accrued expenses                                          999,897
   Interest payable                                           13,932
   Interest payable - related parties                          4,926

     Total current liabilities                             3,453,081

     Total liabilities                                     3,453,081

  Shareholders' equity
   Convertible series B preferred
    stock, $0.0001 par                                            55
   Common Stock. $0.0001 par
                                3,740
   Additional paid in capital                             64,056,135
   Accumulated deficit                                   (50,416,347)

     Total shareholders' equity                           13,643,583
     Total liabilities and shareholders' equity           17,096,664


  CONTACTS:

  John Figone, SVP, Business Development
  US Dataworks, Inc.
  [phone] x250

  Donald C. Weinberger/Alisa Steinberg (media)
  Wolfe Axelrod Weinberger Assoc. LLC
  Tel. [phone]  Fax [phone]


DATASOURCE: US Dataworks, Inc.



CONTACT:  John Figone, SVP, Business Development of US Dataworks, Inc.,

[phone], x250; or Donald C. Weinberger, or Alisa Steinberg (media),

both of Wolfe Axelrod Weinberger Assoc. LLC, [phone], Fax,

[phone]



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

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