EXHIBIT 99.1


            USDATA REPORTS FOURTH QUARTER AND FULL YEAR 2002 RESULTS


     RICHARDSON,  TX,  March 28, 2003  (NASDAQ:  USDC) - USDATA  Corporation,  a
global provider of industrial automation software and services,  today announced
operating results for the fourth quarter and year ended December 31, 2002.
     The company  reported  revenues of $3.0  million for the fourth  quarter of
2002, which are comparable to the fourth quarter of 2001.  Revenues for the year
ended  December 31, 2002 were $10.3  million  compared to $13.6  million for the
prior year, representing a decline of 24%.
     Loss from  operations  was $4.8  million  for the  fourth  quarter  of 2002
compared to income from  operations of $253,000 for the fourth  quarter of 2001.
Loss from  operations  was $7.1  million  for the year ended  December  31, 2002
compared to $1.9 million for the prior year.  Fourth  quarter and full year 2002
results  include a $3.3 million write down of capitalized  software  development
costs. The capitalized  software  development is considered impaired as a result
of the  company  redirecting  its  sales  and  development  efforts  to its core
software products:  FactoryLink(R)  and Xfactory(R).  Full year results for 2001
include a $1.1 million restructuring charge related to excess office lease space
and a $391,000 charge for impaired capitalized software development, as a result
of strategy changes of our suppliers. In addition, 2002 results include $730,000
in severance and other  restructuring  charges, of which $356,000 related to the
company's  amendment to its office lease  agreement in the first quarter of 2002
and $374,000  related to the resignation of our former chief  executive  officer
and from a 23%  reduction  in  workforce  implemented  in November of 2002.  The
amended  office lease  agreement  reduced the company's  corporate  headquarters
office  lease space,  which  resulted in a cash  savings of  approximately  $1.0
million in lease costs during 2002.
     Net loss applicable to common  stockholders was $5.4 million for the fourth
quarter  of 2002,  or a loss of $1.76 per  common  share,  compared  to net loss
applicable  to common  stockholders  of $422,000 in 2001, or a loss of $0.15 per
common share.  Full year net loss  applicable to common  stockholders  was $11.6
million, or a loss of $3.99 per common share, compared to net loss applicable to
common  stockholders  of $12.7  million  in 2001,  or a loss of $4.50 per common
share.
     Jim  Fleet,  interim  president  and  chief  executive  officer  of  USDATA
commented  on  today's  announcement,   "Market  conditions  in  the  industrial
automation  industry  remained  challenging  in the fourth  quarter as companies
continued  to limit  capital  expenditures.  This  coupled  with  the  continued
downward price pressure in the human machine  interface  (HMI) market has led to
the  significant  declines in revenues.  In Q4, the company  released its newest
version of its flagship



     Factorylink(R) software product, which has been well received by the market
place. A strong sales pipeline,  sales from upgrades,  and the impending release
of new products  continue to make us  optimistic  about future  revenue  growth.
However,  we will  continue  to work  diligently  to improve our bottom line and
achieve operational  efficiencies  wherever possible." Mr. Fleet added "with the
recent $1.5  million  funding  from our largest  investor and the renewal of our
$3.0 million working capital facility, we have already begun to execute our plan
of taking our  software  and  services  to market in a broader  way and  getting
closer to our customers."
     Now in its 28th year,  USDATA  Corporation,  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  has  emerged  from
manufacturing and process  automation  solutions and has grown to encompass vast
product  knowledge and control  solutions.  The company has a global  network of
distribution  and  support  partners.  For more  information,  visit  USDATA  at
www.usdata.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.

     Contact: Jennifer P. Dooley
              Chief Financial Officer
              972/680-9700, Ext. 359