"Intuit is declaring victory on another record tax season," said Tom Allanson, senior vice president of Intuit's Tax Division. "We delivered outstanding results for our shareholders and our customers, leveraging the tax law changes and casting our net much wider, introducing new products and giving consumers easier, more convenient access to TurboTax than ever before. And we delivered another year of strong performance on the Web as more and more taxpayers went online for fast and convenient tax preparation and filing."

Year Over Year Growth Online and on the Desktop
On TurboTax for the WebSM, Intuit's leading online tax preparation and filing service, paid federal returns were up from 1.2 million last year to 2.1 million this year, an 80 percent increase. Total federal tax returns completed via TurboTax for the Web reached 3.2 million.

In an intensely competitive environment, Intuit increased its share of retail software units with TurboTax achieving a 71 percent share of federal units sold at retail according to the most recent Weekly Retail Software Report by NPD Techworld, adjusted for other exclusive accounts. TurboTax desktop units through retail and direct channels grew to 5.5 million up from 5.2 million last year.

Expanded Partnerships Drive Growth
Intuit continued to expand both online and retail distribution channels through expanded partnerships. On the Web, Intuit partnered with more than 1,100 financial institutions, electronic retailers and other Web sites, up from 675 last year, making TurboTax for the Web the most widely available tax preparation service on the Internet. Expanding the online channel delivered strong results for Intuit's consumer tax business. Paid TurboTax for the Web federal units completed through these partner sites increased more than 45 percent over last year and Web revenue through partners grew 120 percent over the prior year.

In addition, through Intuit's agreement with Yahoo!, TurboTax for the Web became even more accessible to millions of new customers nationwide via the Yahoo! Finance Tax Center. Yahoo! Finance saw a significant increase in the use of its Tax Center, including a 175 percent increase in online filings compared to last year.

"The strength and reach of our partners is part of the continued success and rapid consumer adoption of TurboTax for the Web," said Allanson. "Partners drive new customers to TurboTax for the Web and this year, delivered more than 100 million impressions across online and offline media, greatly increasing awareness of TurboTax products. Through these valued relationships, we continue to focus on how we can collaborate to better serve shared customers."

In addition to new Web distribution partners, Intuit also expanded its distribution channel for its desktop products and made TurboTax available at 1,500 Safeway and Vons grocery stores nationwide.

Customer-Driven Innovation
This year, Intuit expanded the Instant Data Entry feature, part of its revolutionary Automated Tax Return, increasing the number of participating financial institutions, brokerages, mutual funds and employer services companies from 10 to more than 45. TurboTax customers imported more than one million tax documents - wages, interest, dividends and stock, mortgage interest and mutual fund transactions - directly into their TurboTax return this year, more than triple the number of imports from last tax season.

"Innovation is not about technology; it's about making our customers lives better," said Allanson. "We focus on game changers - creating changes so profound people wouldn't dream of going back to the old way. We continued to deliver on that promise this year, introducing new, customized products and making Instant Data Entry available to millions of consumers. Our success and high-level of satisfaction is a direct result of our commitment to delivering innovative tax solutions to our customers."

Intuit also introduced two new high-end products this year. TurboTax Premium for the Web, priced at $10 more than a regular Web 1040, accounted for more than 15 percent of overall online units sold, signaling a growing demand for more robust online offerings. Helping to drive dollar share at retail was TurboTax Premier, which accounted for 8 percent of TurboTax units sold at retail.

Record Numbers Embrace Electronic Filing
Intuit also reported that 10.1 million federal and state returns have been electronically filed through TurboTax, a 30 percent increase over last year. TurboTax accounts for almost 75 percent of the personally e-filed returns received by the IRS this tax season.

An additional 6 million federal and state returns were electronically filed through Intuit's professional tax software products, ProSeries® and Lacerte®.

About Quicken TurboTax
In its 18th tax season, TurboTax was the No.1-selling tax preparation software program in 2001, with 71 percent share of units sold at retail according to NPD Techworld. Its Web-based counterpart, TurboTax for the Web, is the most popular site for online tax preparation and filing services. The Instant Data Entry feature is included at no additional charge in all 1040 versions of TurboTax. With more than 18 years of personal finance expertise, the TurboTax family of products saves time and money for more than 14 million Americans each year.