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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 (713) 934-3855 ext. 250 Terrie James - media contact (713) 412-2052 Ken Dennard - investor contact (713) 529-6600 DATASOURCE: US Dataworks, Inc. CONTACT: John Figone of US Dataworks, Inc., +1-713-934-3855, ext. 250; or media, Terrie James, +1-713-412-2052, or , for US Dataworks, Inc.; or investors, Ken Dennard, +1-713-529-6600, or , for US Dataworks, Inc. Web site: http://www.usdataworks.com/

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