March 17, 2004

News Release: US Dataworks Supplies Solution to the Federal Reserve System For Banks Across the Country

US Dataworks (Amex: UDW) today announced that it will be providing its paper-check-to-electronic-transmission solution as part of the Federal Reserve's CTAC (Check To ACH) product. CTAC will enable banks across the country to electronically process their car loans, mortgage and other consumer product payments, in collaboration with the Federal Reserve System. CTAC will allow banks of all sizes to realize the potential of ARC payments and will position them to take advantage of additional efficiencies contemplated by Check-21, without significant capital expenditures. ARC permits the conversion of certain paper checks into electronic transactions that are processed through the Automated Clearing House. 'We're pleased that the pilot results have been successful and that the Federal Reserve System is rolling out CTAC as a product,'stated Terry Stepanik, President and COO of US Dataworks. 'CTAC will be offered in several configurations to accommodate banks'remittance processing requirements.'

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.

About Check 21

Federal Reserve Board has developed Check 21 to remove certain legitimate to check truncation (i.e. electronic information about the truncated checks is presented to paying banks instead of the original paper checks themselves). Check 21 is designed to facilitate check truncation, to foster innovation in the check collection system without mandating the receipt of checks in electronic form, and to improve the overall efficiency of the nation's payments system.

Check 21 may result in substantial payments system benefits, depending on the extent to which banks take advantage of provisions of Check 21 to expand the use of electronics in the collection and return of checks. Check 21 should result in faster collection and return of checks and lower costs in the long run; in addition, Check 21 would reduce banks'reliance on air and ground transportation for collection and return of checks. The more rapid check collection and return process could be accomplished in many ways, with benefits likely accruing to both banks and their customers. For additional information, go to the Federal Reserve Bank website (www.federalreserve.gov).

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to, the extent by which banks will process their loan payments through the CTAC product, the potential cost savings that may be realized by banks and the extent of the success of the CTAC pilot 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-USB/A for the period ended March 31, 2003 and its quarterly report on Form 10-USB/A for the period ended December 31, 2003. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements.

SOURCE US Dataworks, Inc.

John Figone of US Dataworks, Inc., +1-713-934-3855, ext. 250, or This email address is being protected from spambots. You need JavaScript enabled to view it.; or Investor Relations: Cormac Glynn of CEOcast, Inc., +1-212-732-4300, for US Dataworks, Inc.

http://usdataworks.com

WEBSITE This email address is being protected from spambots. You need JavaScript enabled to view it.