UDW US Dataworks,

HOUSTON, Oct. 16 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), today announced that a major U.S. Federal Government entity is standardizing payment systems on the US Dataworks enterprise payments platform, Clearingworks 3.0, to process all of its paper and electronic checks. The entity, already a US Dataworks customer, is upgrading its existing Clearingworks platform and replacing other standalone payments systems. The entity will use Clearingworks 3.0 to process an estimated 300 million payments annually, with anticipated peak volumes of more than 10 million payments a day. Clearingworks is the industry's first deployed enterprise payments platform for the end-to-end processing of any paper-based payments, electronic payments or clearing channel. The platform will provide the entity with end-to-end payments processing -- from originations to returns. Using Clearingworks 3.0, the entity will consolidate all check and electronic check payments received by its agencies, process the payments through a single platform, prepare the payments for clearing and deposit, generate electronic check presentment files, and handle all paper or electronic payment returns. In addition, US Dataworks will provide the entity with a range of professional services, including project management, testing, coordination, reporting and tracking of progress, and customization. US Dataworks was awarded the contract after a rigorous selection process that included separate evaluations of the Company and its technology by two independent consulting firms. US Dataworks scored extremely well in both evaluations, with the product review identifying Clearingworks as the industry's only true enterprise payments platform capable of consolidating payments from multiple channels and integrating them into a single solution. The technology review recognized Clearingworks technology and scalability, stating that it positions the entity to support its future volume growth. "Using our end-to-end payments platform, this U.S. Federal Government entity is preparing to take its payments processing to the next level," said US Dataworks President and COO Mario Villarreal. "Today's challenging economy makes it imperative that financial institutions and billers alike find new ways to reduce costs and avoid upfront capital expense further validating the need for enterprise solutions like Clearingworks." "Clearingworks 3.0 raises the bar in the payments industry," said Yolanda Sanchez, product manager at US Dataworks. "With its enterprise platform to manage paper and electronic check payments, from origination through returns, Clearingworks is designed to enable users to react quickly to emerging processing demands, while achieving new levels of efficiency and economy." US Dataworks will showcase Clearingworks 3.0 in its expo hall booth (No. 104) at the Association for Financial Professionals Annual Conference in Los Angeles next week. 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 processing for accepting and clearing checks. Additional information about US Dataworks is available 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 statements regarding the anticipated payments processed by the entity, the services the Company will provide to the entity and the benefits of the Company's products and services to its customers. Any 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 failure to perform as anticipated under the agreement, less than anticipated volume of payments processed by the entity, the Company's position in the marketplace, its 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-KSB for the period ended March 31, 2008 and its quarterly report on Form 10-QSB for the period ended June 30, 2008. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements. CONTACTS: Mario Villarreal, President & COO Donald C. Weinberger US Dataworks, Inc. Wolfe Axelrod Weinberger Assoc. LLC Tel. (866) 337-5477 Tel. (212) 370-4500 Fax (212) 370-4505 DATASOURCE: US Dataworks, Inc. CONTACT: Mario Villarreal, President & COO of US Dataworks, Inc., 1-866-337-5477; or Donald C. Weinberger of Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500, fax, +1-212-370-4505, for US Dataworks, Inc. Web site: http://www.usdataworks.com/

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