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US Dataworks Wins Contract to Deliver ARC Processing Solution HOUSTON, May 3 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a leading developer of payment processing software, announced today that it has signed a contract with Verizon Corporate Services Group Inc., an indirect subsidiary of Verizon Communications Inc. to provide its Clearingworks(TM) Accounts Receivable Conversion (ARC) processing platform. US Dataworks' Clearingworks will allow Verizon to convert paper checks into electronic transactions at five of the company's sites of operation. US Dataworks will begin installing its Clearingworks ARC platform at Verizon's sites and anticipates completion in 2006. When Clearingworks software is installed at all five Verizon sites, Verizon will be able to convert transactions from two different remittance platforms to ARC transactions that in turn will be submitted to two separate financial institutions for processing and payment. US Dataworks's ARC solution incorporates Clearingworks' industry-leading capabilities of MICR parsing, eligibility sorting and return processing. Fees for the US Datawork's ARC platform are charged through a simple, all inclusive per transaction price. After responding to a Request for Proposal (RFP), US Dataworks was selected by Verizon over other bidders. "US Dataworks is very pleased to have been selected by Verizon to deliver its ARC processing solution," said Charles Ramey, chairman and CEO of US Dataworks. "We believe that our Clearingworks ARC platform, with its technical capabilities and pricing structure, offers companies in the remittance industry an edge over other ARC processing software and we are gratified to see that companies are recognizing its advantages." 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 of payments, via ARC or Check 21, is expected to create greater efficiencies and cost savings. 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 perceived leading status of our software solution and the extent by which Verizon may be able to convert their paper transactions 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 December 31, 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 CONTACT: John Figone of US Dataworks, +1-713-934-3855, ext. 250; or media, Terrie James, +1-713-412-2052, or ; or investors, Ken Dennard, +1-713-529-6600, or , both for US Dataworks Web site: http://www.usdataworks.com/

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