"Intuit has become a profitable growth machine," said Steve Bennett, Intuit's president and chief executive officer. "We delivered strong results in fiscal 2002, and expect even stronger growth in fiscal 2003. We have chosen the businesses we're in very deliberately - businesses with steady demand and where we have a sustainable and durable advantage. Within those businesses, we're pursuing unmet or under-served customer needs, creating additional, large growth opportunities. We've added strategic and operational rigor to our core competence of customer-driven innovation to improve execution and better capitalize on these multiple opportunities."

Making Taxes less Taxing: Strategy for Driving Growth in Consumer Tax Unveiled
Intuit announced its strategy for driving sustainable growth in its consumer tax business, which represented 26 percent of the company's revenue in fiscal 2002. Thirty-four million prospects have been identified that are not currently using an Intuit tax product or service. Intuit is launching a "Right for Me" strategy to capitalize on this large opportunity and drive sustained growth. There are two elements to the strategy: introducing new offerings that are tailored to the needs of specific taxpayer segments and being where customers want to be by expanding distribution channels.

The company announced three new TurboTax offerings for the coming tax season - a Spanish version; a deluxe version for retirees and people planning for retirement; and a deluxe version for active investors. Intuit also plans to further expand its distribution by selling TurboTax in additional food and drug stores and other retail outlets. These are just the first steps the company is taking to execute its multi-year "Right for Me" strategy. More details about the strategy are available in a separate press release issued today and available at www.intuit.com/company/press_room/.

Intuit said that it will make minor modifications to its Intuit Tax Freedom program (ITFP) as part of its participation in the Internal Revenue Service's consortium to offer free tax preparation and e-filing to lower income taxpayers. Intuit has been donating free electronic tax preparation and e-filing to lower income taxpayers for the past four years through ITFP (formerly called Quicken Tax Freedom Project). More than 1 million tax returns were prepared and filed under this program in fiscal 2002. Beginning with the coming season, Intuit will donate the service to taxpayers or households with an annual adjusted gross income of $27,000 or less, up from $25,000 last year. Approximately 50 percent of taxpayers will qualify for ITFP, up from about 47 percent last year.

"Right for My Business" Strategy Successfully Driving Stronger Growth Intuit's "Right for My Business" small business strategy, which was launched in December 2001, drove stronger revenue and profit growth in fiscal 2002. Intuit expects even stronger results in fiscal 2003 from its three "Right for My Business" growth engines - QuickBooks, Small Business Services and Vertical Business Management Solutions (business management solutions tailored to meet the needs of specific vertical industries). The company said it will offer 26 QuickBooks products and Small Business Services offerings in fiscal 2003, up from 16 in fiscal 2002 and 8 in fiscal 2001. It also intends to acquire additional companies that provide Vertical Business Management Solutions to bring its total portfolio of companies to between five and ten. New acquisitions will create additional growth platforms for Intuit.

QuickBooks
New "Right for My Business" QuickBooks products produced $30 million in revenue in fiscal 2002, or 40 percent of year-over-year QuickBooks-related revenue growth. "We're very pleased with the early results from our new QuickBooks products and have solid momentum for fiscal 2003 where we'll see the full-year benefit of these offerings," said Bennett. Four new QuickBooks products were introduced in fiscal 2002: QuickBooks Premier (launched Dec. 2001); QuickBooks Premier Accountant edition (launched Dec. 2001); QuickBooks Point-of-Sale (launched May 2002); and QuickBooks Enterprise Solutions (launched June 2002).

Intuit intends to build on this foundation in fiscal 2003, with new versions of existing products and the introduction of new products. New offerings will include a QuickBooks "flavor" designed to meet the needs of small businesses in the construction industry. The new product will be priced at about $500 and will be the third QuickBooks flavor. The company believes there is opportunity for between 5-15 QuickBooks flavors over the next few years.

In addition, Intuit plans to launch a standalone version of the QuickBooks Employee Organizer in December 2003. This new product, priced at approximately $300, will integrate fully with QuickBooks and will make it easier for businesses to manage employee data and meet compliance requirements.

Intuit expects QuickBooks revenue to grow 20-30 percent in fiscal 2003 from approximately $195 million in fiscal 2002, as it continues to pursue the under-penetrated $4.8 billion opportunity for small business accounting and vertical solutions offerings.

Small Business Services
Small Business Services, a $13 billion opportunity that includes payroll and human resources services, technical support, online services and supplies, is another core "Right for My Business" growth engine. In fiscal 2002, Intuit's Small Business Services portfolio had revenue of $335 million, up 15 percent from the prior year. Excluding the supplies business, which had 4 percent growth, year-over-year revenue was up 25 percent. Intuit's goal is to create a $500 million-$1 billion Small Business Services business in the next five years, with a pro forma operating margin of 30 percent or higher.

Intuit has made two acquisitions in recent months to expand this growth engine - Blue Ocean Software, which offers information technology resources management software, and CBS Payroll, which enables Intuit to offer a full-service fully outsourced payroll solution.

With the acquisition of CBS Payroll, Intuit Payroll Services includes three offerings to meet the full range of needs:

• Complete Payroll Services, a fully outsourced payroll solution that offers multiple interfaces and will feature full integration with QuickBooks;
• QuickBooks Assisted Payroll Service (formerly QuickBooks Deluxe), an assisted self-service offering that integrates with QuickBooks; and
• QuickBooks Do-It-Yourself Payroll (formerly QuickBooks Basic), do-it-yourself software that provides tax tables and calculations and integrates with QuickBooks.

Intuit said it has a unique opportunity to offer its new Complete Payroll Service to the approximately 300,000 QuickBooks customers using a competitive outsourced service. The company will launch this QuickBooks-integrated product next month. Customers will be able to load historic payroll data directly into QuickBooks with just one mouse-click. The service also features local tax filing, third-party payments and flexible reporting. Additional functionality that will benefit customers will be introduced in subsequent years.

Vertical Business Management Solutions
Intuit has created a new "Right for My Business" growth engine in the past year through the acquisition of companies that provide business management solutions tailored to meet the needs of specific vertical industries. Intuit's goal is to create a $500 million-$1 billion Vertical Business Management Solutions business in the next five years, with a pro forma operating margin of 30 percent or higher.

Intuit acquired four companies in fiscal 2002, all targeted to industries that require specialized business management solutions:

• Construction management
• Durable goods wholesaling
• Property and real estate management
• Public sector organizations

The company's acquisition strategy is to buy well-run, profitable companies, with strong management teams and proven products and services. Intuit then builds on those strengths with its brand, financial resources and management expertise to turbo-charge growth.

Intuit Confirms Fiscal 2003 Guidance; Provides Long-Term Growth Goals
Intuit confirmed the fiscal 2003 financial guidance that it provided on Aug. 14, 2002. The company expects:

• Revenue of $1.70 billion-$1.80 billion, or growth of 25-33 percent.
• Pro forma operating income of $400 million-$425 million, or growth of 42-50 percent.
• Pro forma EPS of $1.30-$1.36, or growth of 34-40 percent.
• A pro forma operating margin of approximately 23 percent.

Bennett said Intuit's long-range growth goals are for annual organic revenue growth of 15-20 percent and pro forma operating income growth 1.5-2 times the revenue growth rate. Revenue from acquisitions would be in addition to organic revenue. For acquired companies, organic revenue is defined as any revenue in excess of the revenue the company had for the 12 months before it was acquired. The company expects about 63 percent of its fiscal 2003 revenue growth to come from its organic businesses and about 37 percent from acquisitions. In fiscal 2002, organic businesses drove 85 percent of Intuit's revenue growth.

Intuit's policy is to not confirm, update or otherwise comment on its financial projections except in compliance with Regulation FD.