"Intuit is committed to providing 'right for my business' solutions to small business owners," said Steve Bennett, Intuit's president and chief executive officer. "Providing the full range of payroll services - from do-it-yourself products to a complete outsourced solution -- is critical to meeting the different needs of our customers. The acquisition of CBS Payroll enables us to build on our offerings to provide a more robust full-service solution, expand our customer base and leverage an established direct sales force to promote our payroll and other employer services." Bennett noted that in the future customers will have the option of tightly integrating CBS Payroll's payroll service with QuickBooks.

CBS Payroll was founded in 1966 as an accounting and income tax service for small businesses and began providing payroll services in the 1980s. Today, CBS Payroll provides comprehensive desktop and Internet-based payroll solutions for more than 12,000 customers nationwide, including payroll processing and record-keeping, payroll tax processing and management reporting. CBS Payroll's sales force is based throughout the U.S. "Payroll represents a significant opportunity for additional growth for Intuit. CBS Payroll, with its experienced management, talented sales team and great technology, will be a great addition to our team," said Bennett.

"CBS Payroll has been providing the right solutions for small businesses for more than 35 years, and teaming with Intuit will enable us to accelerate our vision," said Micheal Sykes, CBS Payroll's chief executive officer. "As part of Intuit, we now will be able to bring a broader range of solutions to help our customers be even more successful."

Intuit plans to combine CBS Payroll's payroll services with its existing outsourced payroll services business, with Sykes running the combined business. Intuit's payroll processing center in Reno and CBS Payroll's payroll processing center in San Bernardino will be the largest centers for the combined business. The combination of the two companies' payroll businesses may result in the elimination of some redundant jobs, but it's too soon to know if any employees will be affected. Intuit will attempt to place employees whose positions are eliminated in other jobs at the company.

Under the terms of the agreement, Intuit will acquire the outstanding shares of CBS Payroll for approximately $78 million. Approximately $74.5 million will be paid in cash and the remainder will be paid in Intuit stock. Intuit expects CBS Payroll to contribute in excess of $30 million in revenue in fiscal year 2003, which begins Aug. 1, 2002, and expects no material impact on pro forma EPS in fiscal 2003. The acquisition is expected to close in the fourth quarter of Intuit's fiscal 2002 (May 1, 2002 - July 31, 2002), so the company does not expect the acquisition to have a material impact on fiscal 2002 results.

The company's policy is to not confirm, update or otherwise comment on its financial projections except in compliance with Regulation FD. The projections in the guidance provided above are forward-looking statements and are subject to a number of risks and uncertainties as described in "Cautions about Forward-Looking Statements" below.

About Intuit Inc.
Intuit Inc. (NASDAQ: INTU) is the leading provider of financial software and Web-based services for consumers, small businesses and accounting professionals. Its flagship products and services, including Quicken®, QuickBooks®, Quicken TurboTax® and Quicken Loans® simplify personal finance, small business management and payroll processing, tax preparation and filing and home loans.

Founded in 1983, Intuit has annual revenue of more than $1 billion and reaches 25 million customers with nearly 6,000 employees in 13 states and four countries. More information can be found at www.Intuit.com.