US Dataworks and Hyundai Syscomm Terminate Joint Venture
December 19 2007 - 9:00AM
PR Newswire (US)
6.1 Million Outstanding Shares of UDW Stock to be Retired HOUSTON,
Dec. 19 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a
leading developer of payment processing solutions, today announced
the mutual and amicable termination of the Software Integration and
Resale Agreement ("Resale Agreement") and Stock Purchase Agreement
("Purchase Agreement") previously entered into with Hyundai Syscomm
Corp. ("Hyundai") on December 29, 2006, as amended. Timing
differences in connection with the roll-out and market conditions
led both companies to conclude that a termination of the Resale and
Purchase Agreements would best serve both companies and their
respective shareholders. "While we had high expectations for our
partnership with Hyundai, we concluded that it could not be fully
implemented on a timetable acceptable to both parties," said
Chairman and CEO Charles E. Ramey. Hyundai will return the 6.1
million shares of the Company's common stock, which has been held
in escrow, and will no longer be entitled to receive any warrants
to purchase shares of the Company's common stock. The Company plans
to retire the returned shares, which shall have an accretive effect
on the remaining shares outstanding. The Company will no longer be
entitled to receive the contemplated purchase price of $1.5
million. Further, as a condition of the nullification, each party
will no longer have any duties or obligations ascribed to the
Resale and Purchase Agreements. Because the Company maintained the
counterbalancing reserve entries, it will not need to restate its
previously filed financial statements. 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. Additional information about US Dataworks is
available at http://www.usdataworks.com/. Forward-Looking
Statements Except for the historical information contained herein,
the matters set forth in this press release, including, but not
limited to statements regarding the Company's financial statements
and need for a restatement, and the treatment of the returned
shares of common stock, 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
review and audit of its financial statements and other risks
detailed from time to time in the SEC reports of US Dataworks,
including its annual report on its quarterly report on Form 10-QSB
for the period ended September 30, 2007. 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 Donald C.
Weinberger US Dataworks, Inc. Wolfe Axelrod Weinberger Assoc. LLC
Tel. (281) 635-7932 Tel. (212) 370-4500 Fax (212) 370-4505
DATASOURCE: US Dataworks, Inc. CONTACT: John Figone of US
Dataworks, Inc., SVP, Business Development, +1-281-635-7932; 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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