Bill Harris, President and CEO, remarked, "Intuit had a successful fiscal 1999, capped by a strong fourth quarter performance. We saw our Internet efforts take off over the past year at the same time we saw continued strength in our traditional desktop software businesses. In addition, we have once again improved operating profitability while building competitive advantages as we move from the desktop to the server."

Fiscal 1999 Results
For its fiscal year ended July 31, 1999, Intuit reported revenue of $847.6 million, an increase of 43% from revenue of $592.7 million reported for the prior fiscal year. Revenue from acquired companies including Lacerte, the professional tax software company that Intuit acquired in June 1998, was included in these results but not in the fiscal 1998 results. Excluding this revenue, Intuit posted a 28% increase compared to the prior fiscal year.

On a GAAP basis, the Company reported annual net income of $376.5 million, or $5.91 per share on a diluted basis, which included pre-tax gains and losses on marketable securities totaling $579.2 million, or $5.45 per share after tax. The results for the prior fiscal year showed a loss of $12.2 million, or $0.24 per share. (See Table A)

On a pro forma basis, the Company reported a 90% increase in net income for the year. Pro forma net income was $88.9 million, or $1.39 per share on a diluted basis. Net income associated with professional tax software sales by Lacerte, which was acquired in June 1998, was included in fiscal 1999 results but not in the fiscal 1998 results. Pro forma net income for the prior fiscal year was $46.7 million, or $0.90 per share. (See Table B)

The GAAP financial results are prepared in accordance with generally accepted accounting principles and are shown in Table A. Pro forma financial information shown in Table B excludes gain on disposal of business, non-recurring marketing charges, acquisition-related charges, and gains related to the sale of marketable securities.

Fourth Quarter Results
Intuit's financial results reflect the highly seasonal nature of its businesses, particularly its tax return preparation products. Historically, revenue and profitability are highest in Intuit's January and April quarters which reflect the intensity and the short season for its tax product sales. The Company experiences significantly lower revenue in the July and October quarters, while operating expenses to develop new products and services continue at relatively consistent levels during these periods. As a result, Intuit has losses or small profits in these quarters. In addition, Intuit's quarterly revenue pattern is inconsistent from year to year based in part on the variable timing of product launches. For example, versions of QuickBooks launched in the second quarter of the current fiscal year and in the fourth quarter of the previous year, benefiting those quarters.

For the fourth fiscal quarter ended July 31, 1999, Intuit reported revenue of $149.9 million, an increase of 28% compared to the same quarter a year ago. Strong market demand for QuickBooks, continued growth in Internet-based revenue, as well as sales from the launches of new versions of Quicken and QuickBooks in Europe were largely responsible for this growth.

On a GAAP basis, the Company reported net income for the quarter of $263.3 million, or $4.04 per share on a diluted basis, which included pre tax gains and losses on marketable securities totaling $510.5 million, or $4.69 per share. The results for the same fiscal quarter last year reflected a net loss of $39.0 million, or $0.70 per share. (See Table A)

On a pro forma basis, the Company reported a net loss for the quarter of $16.3 million, or $0.26 per share. Pro forma net income for the same fiscal quarter last year was $1.6 million, or $0.03 per share. Fourth quarter fiscal 1999 profitability when compared to the fourth quarter of fiscal 1998 was negatively impacted by one-time expenses related to the transition of the Company's German operations to a licensing business. In addition, the Company experienced incremental marketing expenses to support the early Quicken 2000 launch. (See Table B)

The GAAP financial results are prepared in accordance with generally accepted accounting principles and are shown in Table A. Pro forma financial information shown in Table B excludes gain on disposal of business, non-recurring marketing charges, acquisition-related charges, and gains and losses related to marketable securities.

Business Highlights
"Intuit is leading and defining electronic finance, connecting individuals and small businesses to Web-based resources and then, building interconnections between these resources to provide unique, integrated financial solutions," commented Scott D. Cook, Chairman of the Executive Committee. "We are also driving an increase in revenue per customer, much of it repeat in nature, as we expand our e-finance solutions."

Bill Harris, President and CEO, added, " Intuit remains committed to revolutionizing people's financial lives in the Internet age. The market opportunity for electronic finance is vast. In fiscal 2000, we will be stepping up our efforts to further improve our e-finance market position, with increased spending on R&D and marketing."

Strong Demand for QuickBooks
QuickBooks, the market-leading small business accounting software, saw strong demand and the Company posted fourth quarter revenue equal to the fourth quarter of the prior year despite the fact that last year's fourth quarter revenue benefited from the June 1998 launch of QuickBooks 6.0. For the full year, QuickBooks grew more than 40%, benefiting from two closely-timed product launches, and this is not expected to be the case for fiscal 00.

QuickBooks now accounts for more than 85% share of accounting software dollars at retail, according to PC Data. During fiscal 1999, QuickBooks added an average of 1600 small businesses every day, growing its installed base to over 2.7 million businesses.

Intuit launched its Internet payroll service during fiscal 1999 and now has more than 6,000 businesses using this service. The interconnection between the online payroll service and QuickBooks is successfully expanding the payroll service industry. Approximately 70% of Intuit's payroll service customers previously prepared and filed their payrolls themselves. This Internet payroll service represents one of many opportunities to drive increasing recurring revenue from a growing installed base of over 2.7 million QuickBooks businesses.

Successful Product Launches Drive International Revenue Growth
In the fourth quarter, Intuit completed successful Quicken and QuickBooks product launches in Germany. Additionally, the Company experienced continued strong sales of Quicken in Canada. As a result, revenue for the international division increased 19% versus revenue for the fourth quarter last year. During the fourth quarter, Intuit announced its alliance with Rudolf Haufe Publishing to expand its reach into the European market and to conduct localization efforts. As a result, the Company expects to receive revenue from license royalties, which can be lower than revenue from retail sales.

Intuit Extends Electronic Finance Leadership
Intuit has achieved success with its electronic finance strategy. Today, Intuit is delivering a broad range of connected and interconnected products and services, revolutionizing the way people and small businesses manage their finances.

Intuit's Internet businesses have ramped at a rapid pace. Fiscal 1999 Internet-based revenue across all business divisions (including electronic software distribution) grew to $125.3 million, which is 15% of overall revenue and more than twice the Internet-based revenue for fiscal 1998.

In the second half of fiscal 1999, QuickenMortgage, Intuit's online mortgage site, crossed a major milestone, originating more closed loans and surpassing the Company's nearest online competitor in this measurement. Revenue from QuickenMortgage is lower to date than that of this competitor and is subject to interest rate fluctuations. Intuit has invested aggressively in software technology linking the consumer to mortgage lenders over the Internet. As a result, QuickenMortgage is unique in providing mortgage quotes tailored to each borrower, so that the consumer sees only those loans for which they qualify, including sub-prime loans.

The two-fold increase in the number of tax returns filed electronically and the ten-fold increase in WebTurboTax returns demonstrates the growing popularity of Intuit's Internet tax products. In addition, Intuit was the nation's largest processor under the IRS Online Filing Program.

Fully electronic quoting and sales of auto insurance also grew in fiscal 1999. Quicken InsureMarket now provides access to multiple online auto insurance quotes for more than 70% of the US driving population. To date, there has been limited ability to purchase car insurance online and total insurance revenue is small.

Quicken.com's page views are up strongly from a year ago, with July page views of 160 million, up 78% from a year ago. While page view growth has been strong, traffic volumes can vary significantly from month to month due to seasonal trends, site performance, the timing of launches, competitors' activities, and other factors.

While the Internet presents many opportunities, it is important that investors remember that potential Internet-related revenue and profits may be difficult to predict or achieve and may also be impacted by many factors including seasonal and interest rate trends, and the highly competitive Internet finance environment.

Quicken Adds 800,000 Users
Fiscal 1999 saw Quicken expand its customer base, adding more than 800,000 active users during the year. Today Quicken has more than 11 million users and holds over 70% dollar share at retail. More recently, Intuit launched Quicken 2000 with expanded Internet links to provide single-click access to Web-based financial data. The new Asset Allocation Guide helps users target the appropriate investment mix. Interactive tax planning and management tools, including Tax Withholding Estimator, Itemized Deduction Estimator and Tax Alerts, enable users to proactively manage their taxes. Free tax preparation and filing with WebTurboTax is included with Quicken 2000 Deluxe.

1999: Another Strong Tax Season
Intuit marked another record tax season selling more than 4.1 million copies of its desktop software and a ten-fold increase over fiscal 1998 in returns prepared using the Internet tax preparation product, WebTurboTax. In addition, 1.6 million returns were filed electronically, more than double the number of the prior year. The Company faces intense competition with its personal tax products and expects Microsoft to be a competitor in the next season. Intuit's ProSeries and Lacerte tax products also had a strong season, reaching more than 75,000 professional tax preparers.

For tax year 1998, one out of every five individual tax returns filed with the IRS were prepared on Intuit products.

A PowerPoint presentation accompanying the Intuit earnings conference call is available at www.intuit.com/fy99 and will remain available for two weeks. Those planning to listen to the conference call should download the PowerPoint file before the call begins.