EXHIBIT 99.1


FOR IMMEDIATE RELEASE                                   PRESS CONTACT
                                                        Jennifer Dooley
                                                        Chief Financial Officer
                                                                   972-497-0359
                                                             jdooley@usdata.com


                         USDATA ANNOUNCES ACQUISITION OF
                           WIZARD INFORMATION SYSTEMS

         o        Acquisition more than doubles USDATA's capabilities in sales,
                  support, and delivery in Western Europe

         o        USDATA gains a total solutions capability by leveraging
                  industry-leading FactoryLink and Xfactory product lines

         o        Larger portfolio of software assets will extend USDATA's
                  presence into other functional areas of industrial operations

         o        New offerings include solutions for customers looking to meet
                  their operations and business demands for less than they are
                  paying to support installed proprietary and antiquated systems

RICHARDSON, TEXAS, October 1, 2002 -- USDATA Corporation, a leading supplier of
industrial automation software solutions, today announced its acquisition of all
of the issued and outstanding stock of Wizard Information Systems, Ltd., a
privately held company located in the United Kingdom and a major distributor of
USDATA. In addition to expanding USDATA's portfolio of software assets, the
acquisition provides direct access to new customers and markets by more than
doubling USDATA's capabilities in sales, support, and delivery in Western
Europe.

"We believe this acquisition substantially increases our participation in the
European market and provides a software and services platform to propel our
future growth," said Bob Merry, President and CEO of USDATA. "USDATA will now
have direct access to many new customers and projects in Europe's largest
industrial automation markets and the Wizard acquisition enables us to deliver a
portfolio of products and services that comprise a total solution designed to
meet the industrial automation needs of our customers."

As a result of the acquisition, Wizard will now be a wholly owned subsidiary of
USDATA, managed by a separate board of directors. Adrian Wise and Dave Moody,
formerly principal shareholders of Wizard, will serve as board members of the
new subsidiary and retain day-







to-day management control, ensuring uninterrupted service for Wizard's existing
customers as the unified company moves forward.

"USDATA and Wizard customers will benefit tremendously from this transaction,"
said Wise. "We have invested heavily in building solutions for customers using
USDATA's products in conjunction with our software, services, and know-how.
Moody added, "USDATA now offers a more compelling solution for customers looking
to meet their operations and business demands for less than they are currently
paying to support closed, proprietary, and antiquated systems. Customers and
partners throughout Western Europe will be able to draw upon our expertise in
replacing these systems."

Wizard currently provides software and services for quality management,
forecasting and planning, and scheduling applications in addition to USDATA's
FactoryLink and Xfactory products. Wizard has offices in the United Kingdom,
France, and the Netherlands.

USDATA acquired Wizard for $140,000 in cash; 220,752 shares of its common stock
and 16,800 shares of its Series B Preferred Stock. In addition, the selling
principals may receive up to 515,088 shares of USDATA common stock and 39,200
shares of USDATA Series B Preferred Stock based upon continued employment over 3
years and the future performance of Wizard.

USDATA today also announced that third quarter revenues are expected to fall
significantly below second quarter levels largely due to a general economic
slowdown in the industrial sectors. "Although we are disappointed with our third
quarter performance, we think that the Wizard acquisition will help us develop a
more robust sales pipeline and recover faster in this economy," said Bob Merry.


ABOUT USDATA
Now in its 28th year, USDATA Corporation (NASDAQ: USDC), headquartered in
Richardson, Texas is a leading global provider of software and services that
give enterprises the knowledge and control needed to perfect the products they
produce and the processes they manage. Based upon a tradition of flexible
service, innovation, and integration, USDATA's software currently operates in
more than 60 countries around the globe, including seventeen of the top
twenty-five manufacturers. USDATA's software heritage is born out of
manufacturing and process automation solutions and has grown to encompass the
industry's deepest product knowledge and control solutions. With an eye toward
the future of e-business, USDATA continues to innovate solutions that will
support the integration of enterprise production and automation information into
the supply chain. The company has six offices worldwide and a global network of
distribution and support







partners. For more information, visit USDATA on the Web at www.usdata.com or
Wizard Information Systems at www.wizinfosys.com.

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 regarding revenues,
margins, operating expenses, earnings, growth rates and certain business trends
that are subject to risks and uncertainties that could cause actual results to
differ materially from the results described herein. Specifically, the ability
to grow product and service revenues may not continue and the company may not be
successful in developing new products, product enhancements, or services on a
timely basis or in a manner that satisfies customers needs or achieves market
acceptance. Other factors that could cause actual results to differ materially
are: competitive pricing and supply, market acceptance and success for service
offerings, short-term interest rate fluctuations, general economic conditions,
employee turnover, possible future litigation, and related uncertainties on
future revenue and earnings as well as the risks and uncertainties set forth
from time to time in the company's other public reports and filings and public
statements. Recipients of this document are cautioned to consider these risks
and uncertainties and to not place undue reliance on these forward-looking
statements. All subsequent written and oral forward-looking statements
attributable to the company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements.


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October 1, 2002
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