Fiscal 2002 Financial Results
"Intuit had another great year, delivering strong revenue and profit growth," said Steve Bennett, Intuit's president and chief executive officer. "Three key fundamentals are driving Intuit's success. We've chosen the businesses we're in very deliberately - businesses in which we have a strategic and durable advantage. We've taken a fresh look at our served markets to uncover significant unmet customer needs. And by applying strategic and operational rigor, we're building a track record of solid execution to better capitalize on our many opportunities." Highlights from fiscal 2002 include:

• Revenue of $1.36 billion was up 18 percent over fiscal 2001, driven by strong performance in Intuit's largest businesses - small business and tax.
• GAAP net income of $140.2 million was up $223.0 million from a loss of $82.8 million in fiscal 2001. This year's GAAP results reflect stronger revenue growth and profitability. They also reflected $82.5 million less in losses related to marketable securities and $66.6 million less in acquisition-related charges than in fiscal 2001.
• GAAP EPS of $0.64 increased $1.04 from a loss of $0.40 in fiscal 2001.

In addition to GAAP results, Intuit continues to report pro forma performance to provide investors with an alternative method for assessing ongoing core operating results.

• Pro forma net income of $211.3 million increased 30 percent from the year-ago period.
• Pro forma EPS of $0.97 was up 29 percent.

Intuit's pro forma information, shown in Tables B1 and B2, is presented using the same consistent standards from quarter to quarter and year to year. Pro forma information is presented for informational purposes only. Pro forma operating income excludes acquisition-related charges, such as amortization of goodwill and intangibles and impairment charges, and amortization of purchased software and purchased research and development. Pro forma net income and earnings per share exclude discontinued operations, gains and losses on marketable securities, gains and losses on divestitures and the tax effects of these transactions. The notes to Tables B1 and B2 describe the specific items excluded from pro forma results and the impact of those exclusions. Because there are no industry standards for presenting pro forma results, the method Intuit uses may differ from the methods used by other companies.

Impact of the Sale of Quicken Loans
Intuit sold its Quicken Loans mortgage business in July 2002 as part of Intuit's strategy to realign its portfolio to focus on businesses in which it has a sustainable and durable advantage. Quicken Loans is being treated as a discontinued operation for accounting purposes, and as a result, the financial results for Quicken Loans - reflecting all income and expenses and totaling $47.1 million -- have been segregated into a separate line item in the GAAP results rather than reflected in Intuit's operating results. The $23.3 million gain on the sale is also shown on a separate line in GAAP results.

Fourth-Quarter Financial Results
Intuit also posted strong results for the fourth quarter of fiscal 2002:

• Revenue of $197.2 million was up 31 percent over $150.3 million for the year-ago quarter, driven primarily by strong growth in QuickBooks and Canada.
• On a GAAP basis, Intuit reported a net loss for the quarter of $31.8 million, or a loss of $0.15 per share. Intuit typically reports a loss in its fourth quarter when revenue from tax preparation businesses is minimal, but operating expenses to develop new products and services continue at relatively consistent levels. In the year-ago quarter, Intuit reported a net loss of $61.3 million, or a loss of $0.29 per share. The smaller loss in fiscal 2002 was due to the strength in Intuit's business as well as the gain on the sale of Quicken Loans.
• On a pro forma basis, Intuit reported a net loss of $19.9 million versus a loss of $29.1 million in the prior-year quarter.
• Pro forma EPS was a loss of $0.09 versus a loss of $0.14 in the year-ago period.

Fiscal 2002 Business Highlights
Intuit's two largest growth engines - small business and tax - drove strong performance in fiscal 2002. In small business, Intuit saw solid initial results of executing its "Right for My Business Strategy" to serve larger and more complex small businesses, provide industry-specific business management solutions and solutions that go beyond accounting:

• QuickBooks-related revenue of $251 million in fiscal 2002 was up 16 percent in the year.
• The four new QuickBooks offerings - QuickBooks Accountants edition, QuickBooks Enterprise Business Solutions, QuickBooks Point of Sale and QuickBooks Premier - accounted for approximately 5.5 percent of the unit mix and more than 12 percent of the revenue mix.
• Intuit said it expects QuickBooks-related revenue to grow 20-30 percent in fiscal 2003.
• The QuickBooks-branded payroll offerings - Basic and Deluxe - had combined revenue of $108 million, up 39 percent.

Intuit had record results in its tax businesses in fiscal 2002:

• Consumer tax revenue of $351 million was up 29 percent over fiscal 2001.
• Professional tax revenue of $222 million was up 25 percent over fiscal 2001, driven primarily by the acquisition of TAASC in April 2001.

Intuit's Canada business also had an outstanding year, with revenue of $44.6 million up 29 percent from the prior year.

Other Business Updates
Three of Intuit's smaller businesses - Quicken-related businesses, Premier payroll and Japan - under-performed in fiscal 2002. Although Quicken remains the clear leader in personal finance software, this is a mature category that doesn't offer significant room for growth in unit sales. However, Intuit sees opportunity to grow Quicken-related services, which had revenue of $37 million, up nearly 50 percent in fiscal 2002. Its newest service, Quicken Brokerage powered by Siebert, will launch in the next several weeks.

Intuit's Premier payroll service, which represented about 3 percent of Intuit's revenue, had flat year-over-year revenue. Premier is a back-end, private label payroll product. Although there is not a short-term solution to improve the performance of Premier, Intuit is confident it will not adversely affect the company's long-term performance.

Intuit's Japanese business, which also represented about 3 percent of Intuit's revenue, had a 12 percent year-over-year decrease in revenue due to weak market conditions. The business gained market share in Japan and was more profitable in fiscal 2002 as Intuit discontinued its QuickBooks Japan product. Intuit is working on several alternatives to improve performance in this business, but continues to see revenue growth as a near-term challenge.

Forward-Looking Guidance Raised for Fiscal 2003
"Fiscal 2002 was a great year for Intuit, and we expect even stronger performance in fiscal 2003," said Bennett.

Intuit raised its guidance for fiscal 2003, to reflect its proposed acquisition of Blue Ocean Software, Inc., which was announced separately today. New guidance is:

• Revenue of $1.70-$1.80 billion, or growth of 25-33 percent
• Pro forma operating income of $400-$425 million, or growth of 42-50 percent.
• Pro forma EPS of $1.30-$1.36, or growth of 34-40 percent.

The accompanying fact sheet has more details on Intuit's historical performance and financial projections. The company's policy is to not confirm, update or otherwise comment on its financial projections except in compliance with Regulation FD.

Intuit CEO and CFO Certify Past SEC Filings
Intuit announced that Steve Bennett and Greg Santora, senior vice president and chief financial officer, submitted to the Securities and Exchange Commission statements under oath certifying the company's fiscal 2001 Form 10-K and subsequent SEC filings. These statements were filed pursuant to the SEC's Order Number 4-460. While the order does not require a certification covering Intuit's filings from fiscal 2001, Bennett and Santora each voluntarily signed a statement covering them. They also will certify Intuit's 10-K for fiscal 2002 when it is filed with the SEC before October 29, as required by the order.

Santora to Retire as CFO
Intuit also announced that Greg Santora has decided to retire from Intuit at the end of the calendar year. Santora will remain in his current role until then. "Coming off multiple great years, Greg has decided that it's a good time for him to make a change," said Bennett. "The board and I are pleased that he has agreed to remain in his current role, continuing to provide his strong leadership and experience and ensure a seamless transition. We've begun a search for his successor and Greg will participate in the search process. I want to personally thank Greg for his financial guidance, wisdom, leadership, and, above all, integrity that have helped Intuit become a successful and growing company."

Power Point Presentation and Conference Call
A PowerPoint presentation accompanying the Intuit earnings conference call and a live audio Web-cast of the call is available at www.intuit.com/company/investors and will remain available for one week. The conference call number is 800-615-5585 (706-679-0331 from international locations). No reservation or access code is needed. Those planning to listen to the conference call should download the PowerPoint file before the call begins. A replay of the call will be available for one week by calling 800-642-1687 (706-645-9291 for international locations). The reservation number is 4996436.