UDW US Dataworks,

HOUSTON, March 27 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a leading developer of payment processing solutions, announced today it has repurchased a convertible promissory note issued to Crescent Fund in June 2005. The debenture was being repaid in monthly installments in shares of the Company's common stock. Charles E. Ramey, Chairman and CEO of US Dataworks said, "We are pleased with this transaction, which we believe has caused an overhang in our stock over the last few weeks. We feel this move will benefit shareholders in the long-term, especially as we are broadening several of our customer relationships, including the one with Hyundai Syscomm." 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 that the repurchase of the convertible debenture will benefit our shareholders in the long term 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-KSB for the period ended March 31, 2006 and its quarterly report on Form 10-QSB for the period ended December 31, 2006. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements. CONTACTS: John Figone, SVP, Business Development US Dataworks, Inc. Tel. (713) 934-3855 Fax (713) 934-8127 Donald C. Weinberger/Alisa Steinberg (media) Wolfe Axelrod Weinberger Assoc. LLC Tel. (212) 370-4500 Fax (212) 370-4505 DATASOURCE: US Dataworks, Inc. CONTACT: John Figone, SVP, Business Development of US Dataworks, Inc., +1-713-934-3855, or fax, +1-713-934-8127; or media, Donald C. Weinberger, or Alisa Steinberg, both of Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500, or fax, +1-212-370-4505, for US Dataworks, Inc. Web site: http://www.usdataworks.com/

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