H&R Block Reports Interim Tax Season Data Through March 31

Tax Season Results Remain Strong



Apr 12, 2001, 01:00 ET from H&R Block Inc.

    KANSAS CITY, Mo., April 12 /PRNewswire/ -- H&R Block Inc. (NYSE:   HRB)
 reported today that revenues received from tax preparation and related
 services increased 10.5 percent to $1.5 billion for company-owned and
 franchised offices from Jan. 1 through March 31, compared to the same period
 last year.  The average fee for tax preparation and related services rose
 10.2 percent to $108.80, while total clients served increased 2.8 percent.
     "Results through the end of March reflect a continued increase in
 the number of complex returns prepared by H&R Block this year," said
 Mark A. Ernst, president and chief executive officer.  "This is consistent
 with our marketing strategy and is contributing to an increase in our average
 fee.
     "Current filing trends suggest H&R Block is on track to meet or possibly
 exceed our previously announced revenue and earnings goals for the full year,"
 added Ernst.  "Clearly, the remaining days of the tax season are important to
 our ultimate full year results."
     Through March 31, company-owned and franchised offices prepared
 13.2 million returns, an increase of 1.8 percent.  The number of clients
 served increased 2.8 percent to 14.6 million.  During this period, H&R Block
 filed 12.4 million federal returns electronically, representing an
 8 percent increase over the prior year.  Through the period, 85.2 percent
 of the returns processed by the company were filed electronically.
     Except for historical information contained herein, the matters set forth
 in this press release are forward-looking statements based upon current
 information and expectations. Such statements speak only as of the date on
 which they are made, are not guarantees of future performance, and involve
 certain risks, uncertainties and assumptions that could cause actual results
 to differ materially from what is expressed, implied or forecast in such
 forward-looking statements.  Such differences could be caused by a number of
 factors, including, but not limited to, the uncertainties that the company
 will achieve or exceed its revenue, earnings, client and pricing growth goals
 for fiscal year 2001, that current filing and complexity trends will continue
 during the remainder of the tax season, that average fees will continue at
 current levels or increase during the remainder of fiscal year 2001, of the
 success of the company's marketing efforts, changes in economic, political
 or regulatory environments, and risks described from time to time in reports
 and registration statements filed by H&R Block Inc and its subsidiaries with
 the Securities and Exchange Commission.  Readers should take these factors
 into account in evaluating such forward-looking statements.
 
     About H&R Block
     H&R Block Inc. is a diversified company with subsidiaries providing a wide
 range of financial products and services.  In 2000, H&R Block served
 19.2 million taxpayers -- more than any tax or accounting firm -- through its
 more than 10,000 offices located in the United States, Canada, Australia and
 the United Kingdom.  H&R Block served another 1.8 million tax clients through
 its award-winning software program, Kiplinger TaxCut(R), and through its new
 online tax preparation services. Investment services and securities products
 are offered through H&R Block Financial Advisors Inc., member NYSE, SIPC.  H&R
 Block Inc. is not a registered broker-dealer.  H&R Block Mortgage Corporation
 and Option One Mortgage Corporation offer a full range of home mortgage
 products.  RSM McGladrey Inc. is a national accounting, tax and consulting
 firm with 100 offices nationwide, as well as an affiliation with 550 offices
 in 75 countries as the U.S. member of RSM International. Quarterly results and
 other information are available on the company's Web site at
 www.hrblock.com .
 
     H&R Block, Inc.
     Preliminary U.S. Tax Operating Data
     Period January 1 through March 31
     Amounts in thousands, except average charge and number of offices
 
                                                    For the period ended
                                            03/31/2001   03/31/2000  % change
 
     Tax preparation & related fees
        Company owned offices                  $958,112     $858,809   11.6%
        Franchised offices                      518,900      477,673    8.6%
                                             $1,477,012   $1,336,482   10.5%
 
     Tax returns prepared
        Company owned offices                     8,187        8,094    1.1%
        Franchised offices                        4,975        4,831    3.0%
                                                 13,162       12,925    1.8%
 
     Total clients served
        Company owned offices                     8,325        8,327    0.0%
        Franchised offices                        5,250        5,213    0.7%
        E-commerce *                                992          624   59.0%
                                                 14,567       14,164    2.8%
 
     Tax returns filed electronically**
        Company owned offices                     7,295        7,044    3.6%
        Franchised offices                        4,150        3,823    8.6%
        E-commerce *                                963          621   55.1%
                                                 12,408       11,488    8.0%
 
     Percent filed electronically
        Company owned offices                     87.6%        84.6%
        Franchised offices                        79.0%        73.3%
        E-commerce *                              97.1%        99.5%
                                                  85.2%        81.1%
 
     Average fee per client served
        Company owned offices                   $115.09      $103.14   11.6%
        Franchised offices                        98.84        91.63    7.9%
                                                $108.80       $98.71   10.2%
 
     Refund anticipation loans
        Company owned offices                     2,715        2,919   -7.0%
        Franchised offices                        1,625        1,671   -2.8%
        E-commerce *                                 38           26   46.2%
                                                  4,378        4,616   -5.2%
 
     Offices
        Company owned offices                     5,060        5,162   -2.0%
        Franchised offices                        4,012        4,048   -0.9%
                                                  9,072        9,210   -1.5%
 
     *  Includes on-line completed and paid returns and e-filings for
        software clients.
 
     ** Includes Federal only.  State returns also electronically filed are
        not included in this total.
 
 

SOURCE H&R Block Inc.
    KANSAS CITY, Mo., April 12 /PRNewswire/ -- H&R Block Inc. (NYSE:   HRB)
 reported today that revenues received from tax preparation and related
 services increased 10.5 percent to $1.5 billion for company-owned and
 franchised offices from Jan. 1 through March 31, compared to the same period
 last year.  The average fee for tax preparation and related services rose
 10.2 percent to $108.80, while total clients served increased 2.8 percent.
     "Results through the end of March reflect a continued increase in
 the number of complex returns prepared by H&R Block this year," said
 Mark A. Ernst, president and chief executive officer.  "This is consistent
 with our marketing strategy and is contributing to an increase in our average
 fee.
     "Current filing trends suggest H&R Block is on track to meet or possibly
 exceed our previously announced revenue and earnings goals for the full year,"
 added Ernst.  "Clearly, the remaining days of the tax season are important to
 our ultimate full year results."
     Through March 31, company-owned and franchised offices prepared
 13.2 million returns, an increase of 1.8 percent.  The number of clients
 served increased 2.8 percent to 14.6 million.  During this period, H&R Block
 filed 12.4 million federal returns electronically, representing an
 8 percent increase over the prior year.  Through the period, 85.2 percent
 of the returns processed by the company were filed electronically.
     Except for historical information contained herein, the matters set forth
 in this press release are forward-looking statements based upon current
 information and expectations. Such statements speak only as of the date on
 which they are made, are not guarantees of future performance, and involve
 certain risks, uncertainties and assumptions that could cause actual results
 to differ materially from what is expressed, implied or forecast in such
 forward-looking statements.  Such differences could be caused by a number of
 factors, including, but not limited to, the uncertainties that the company
 will achieve or exceed its revenue, earnings, client and pricing growth goals
 for fiscal year 2001, that current filing and complexity trends will continue
 during the remainder of the tax season, that average fees will continue at
 current levels or increase during the remainder of fiscal year 2001, of the
 success of the company's marketing efforts, changes in economic, political
 or regulatory environments, and risks described from time to time in reports
 and registration statements filed by H&R Block Inc and its subsidiaries with
 the Securities and Exchange Commission.  Readers should take these factors
 into account in evaluating such forward-looking statements.
 
     About H&R Block
     H&R Block Inc. is a diversified company with subsidiaries providing a wide
 range of financial products and services.  In 2000, H&R Block served
 19.2 million taxpayers -- more than any tax or accounting firm -- through its
 more than 10,000 offices located in the United States, Canada, Australia and
 the United Kingdom.  H&R Block served another 1.8 million tax clients through
 its award-winning software program, Kiplinger TaxCut(R), and through its new
 online tax preparation services. Investment services and securities products
 are offered through H&R Block Financial Advisors Inc., member NYSE, SIPC.  H&R
 Block Inc. is not a registered broker-dealer.  H&R Block Mortgage Corporation
 and Option One Mortgage Corporation offer a full range of home mortgage
 products.  RSM McGladrey Inc. is a national accounting, tax and consulting
 firm with 100 offices nationwide, as well as an affiliation with 550 offices
 in 75 countries as the U.S. member of RSM International. Quarterly results and
 other information are available on the company's Web site at
 www.hrblock.com .
 
     H&R Block, Inc.
     Preliminary U.S. Tax Operating Data
     Period January 1 through March 31
     Amounts in thousands, except average charge and number of offices
 
                                                    For the period ended
                                            03/31/2001   03/31/2000  % change
 
     Tax preparation & related fees
        Company owned offices                  $958,112     $858,809   11.6%
        Franchised offices                      518,900      477,673    8.6%
                                             $1,477,012   $1,336,482   10.5%
 
     Tax returns prepared
        Company owned offices                     8,187        8,094    1.1%
        Franchised offices                        4,975        4,831    3.0%
                                                 13,162       12,925    1.8%
 
     Total clients served
        Company owned offices                     8,325        8,327    0.0%
        Franchised offices                        5,250        5,213    0.7%
        E-commerce *                                992          624   59.0%
                                                 14,567       14,164    2.8%
 
     Tax returns filed electronically**
        Company owned offices                     7,295        7,044    3.6%
        Franchised offices                        4,150        3,823    8.6%
        E-commerce *                                963          621   55.1%
                                                 12,408       11,488    8.0%
 
     Percent filed electronically
        Company owned offices                     87.6%        84.6%
        Franchised offices                        79.0%        73.3%
        E-commerce *                              97.1%        99.5%
                                                  85.2%        81.1%
 
     Average fee per client served
        Company owned offices                   $115.09      $103.14   11.6%
        Franchised offices                        98.84        91.63    7.9%
                                                $108.80       $98.71   10.2%
 
     Refund anticipation loans
        Company owned offices                     2,715        2,919   -7.0%
        Franchised offices                        1,625        1,671   -2.8%
        E-commerce *                                 38           26   46.2%
                                                  4,378        4,616   -5.2%
 
     Offices
        Company owned offices                     5,060        5,162   -2.0%
        Franchised offices                        4,012        4,048   -0.9%
                                                  9,072        9,210   -1.5%
 
     *  Includes on-line completed and paid returns and e-filings for
        software clients.
 
     ** Includes Federal only.  State returns also electronically filed are
        not included in this total.
 
 SOURCE  H&R Block Inc.