Jackson Hewitt Regains Compliance With NYSE Minimum Share Price Requirement

PARSIPPANY, N.J., Jan. 3, 2011 /PRNewswire/ -- Jackson Hewitt Tax Service Inc. ("Jackson Hewitt") (NYSE: JTX) announced today that it has received notice from New York Stock Exchange Regulation, Inc. that Jackson Hewitt's 30-day average share price has now met the requirements to restore compliance with the $1.00 minimum share price requirement for the New York Stock Exchange, Inc.'s ("NYSE") continued listing standards.  On December 31, 2010, Jackson Hewitt's common stock closed at $2.17 per share, and the average closing stock price over the 30 consecutive trading-day period was $1.29 per share.  Jackson Hewitt had previously received a letter of non-compliance from New York Stock Exchange Regulation, Inc. on August 31, 2010 regarding the minimum share price listing standard.  

In addition, the NYSE requires an average equity market capitalization of not less than $50 million over a 30 consecutive trading-day period, or a stockholders' equity of not less than $50 million.  As previously announced, Jackson Hewitt is out of compliance with this requirement and continues to follow all NYSE requirements to regain compliance with the minimum equity market capitalization listing standard under a previously accepted plan.  Compliance can be restored either at the conclusion of an 18-month cure period, or based on two consecutive quarterly monitoring periods in compliance.

About Jackson Hewitt Tax Service Inc.

Based in Parsippany, N.J., Jackson Hewitt Tax Service Inc. (NYSE: JTX) is an industry leading provider of full service individual federal and state income tax preparation, with franchised and company-owned office locations throughout the United States.  Jackson Hewitt Tax Service^® also offers an online tax preparation product at www.jacksonhewittonline.com.  For more information, or to locate the Jackson Hewitt^® office nearest to you, visit www.jacksonhewitt.com or call 1-800-234-1040.  Jackson Hewitt can also be found on Facebook and Twitter.

Forward-Looking Statements

This press release contains statements, including, without limitation, the statements related to the status of Jackson Hewitt's compliance with New York Stock Exchange continued listing standards, which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Because these forward-looking statements involve risks and uncertainties, actual results may differ materially from those expressed or implied in the forward-looking statements due to a number of factors, including but not limited to: Jackson Hewitt's ability to execute on its strategic plan and reverse its declining profitability; ability to improve Jackson Hewitt's distribution system; government legislation and regulation of the tax return preparation industry and related financial products, including refund anticipation loans, and the failure by us, or the financial institutions which provide financial products to Jackson Hewitt's customers, to comply with such legal and regulatory requirements; the success of Jackson Hewitt's franchised offices; Jackson Hewitt's customers' ability to obtain financial products through Jackson Hewitt's tax return preparation offices; changes in Jackson Hewitt's relationship with Wal-Mart or other large retailers and shopping malls that could affect Jackson Hewitt's growth and profitability; Jackson Hewitt's compliance with credit facility covenants; compliance with the NYSE's continued listing standards; Jackson Hewitt's ability to continue to operate as a going concern; Jackson Hewitt's ability to reduce its cost structure; Jackson Hewitt's ability to successfully attract and retain key personnel; government initiatives that simplify tax return preparation or reduce the need for a third party tax return preparer, improve the timing and efficiency of processing tax returns or decrease the number of tax returns filed; delays in the passage of tax laws and their implementation; Jackson Hewitt's ability to exercise control over the operations of its franchisees; Jackson Hewitt's responsibility to third parties, regulators or courts  for the acts of, or failures to act by, Jackson Hewitt's franchisees or their employees; the effectiveness of Jackson Hewitt's tax return preparation compliance program; increased regulation of tax return preparers; Jackson Hewitt's exposure to litigation; the failure of Jackson Hewitt's insurance to cover all the risks associated with its business; Jackson Hewitt's ability to protect its customers' personal and financial information; the effectiveness of Jackson Hewitt's marketing and advertising programs and franchisee support of these programs; the seasonality of Jackson Hewitt's business; competition from tax return preparation service providers, volunteer organizations and the government; Jackson Hewitt's reliance on technology systems and electronic communications to perform the core functions of its business; Jackson Hewitt's ability to protect its intellectual property rights or defend against any third party allegations of infringement by us; Jackson Hewitt's reliance on cash flow from subsidiaries; Jackson Hewitt's exposure to increases in prevailing market interest rates; Jackson Hewitt's quarterly results not being indicative of its performance as a result of tax season being relatively short and straddling two quarters; certain provisions that may hinder, delay or prevent third party takeovers; Jackson Hewitt's ability to maintain an effective system of internal controls; impairment charges related to goodwill; the credit market crisis; and the effect of market conditions, general conditions in the tax return preparation industry or general economic conditions.

Additional information concerning these and other risks that could impact Jackson Hewitt's business can be found in Jackson Hewitt's Annual Report on Form 10-K/A for the fiscal year ended April 30, 2010, and other public filings with the Securities and Exchange Commission ("SEC").  Copies are available from the SEC or Jackson Hewitt's website.  Jackson Hewitt assumes no obligation, and Jackson Hewitt expressly disclaims any obligation, to update or alter any forward-looking statements.

SOURCE Jackson Hewitt Tax Service Inc.