"Intuit delivered another strong quarter - and we're on target to deliver another great year," said Steve Bennett, Intuit's president and chief executive officer. "We have multiple growth engines with large, under-penetrated opportunities. We have multi-year strategies to attack those opportunities. And we're executing better to capitalize on those opportunities."

Second-Quarter Financial Results

• Revenue of $558.1 million increased 17 percent from the second-quarter 2002. Growth was driven primarily by higher unit sales in many of Intuit's business units, a shift in customer purchases to higher-value offerings and incremental revenue from acquisitions.
• On a GAAP basis, Intuit had net income of $128.4 million, up 7 percent from $119.9 million in the year-earlier period. This represents $0.60 per share, up 9 percent from $0.55 per share in the second-quarter of 2002. Stronger revenue growth and lower acquisition-related charges in fiscal 2003 due to the adoption of the Financial Accounting Standard Board's SFAS 142 contributed to the year-over-year difference.
• Intuit's second-quarter pro forma operating income from continuing operations was $184.4 million, up 12 percent from the year-earlier period. Pro forma diluted earnings per share of $0.61, was up 15 percent over the year-ago period.

Intuit's Five Growth Engines Post Solid Results
Each of Intuit's five key businesses - TurboTax, Professional Accounting Solutions, Small Business Products and Services, QuickBooks and Vertical Business Management Solutions - had strong results in the second quarter.

• TurboTax revenue of $95.3 million was up 11 percent from the second quarter of 2002, as the company executes its new Right for Me strategy.
• Revenue from Intuit's Professional Accounting Solutions business increased 9 percent over the second quarter of fiscal 2002 to $151.2 million, and the business remains very profitable.
• Intuit's Small Business Products and Services revenue increased 33 percent over the year-ago quarter to $120.7 million. This unit includes payroll, supplies, technical support and information technology solutions.
• QuickBooks revenue grew 11 percent to $93.5 million as Intuit continues to execute its Right for My Business strategy.
• Intuit's Vertical Business Management Solutions unit contributed $24.0 million in revenue in the second quarter, a 22 percent increase over the revenue those companies had in the year-earlier period.
• Revenue from Intuit's Other Businesses segment, which primarily consists of Quicken and Canada, was $73.5 million, about flat year over year.

Other Updates
Last week, Intuit announced it had completed the sale of its Tokyo-based Intuit KK subsidiary to Advantage Partners, Inc. (For more information about the impact of the sale of the Japan business on Intuit's results, please see its Feb. 7, 2003, press release at http://www.intuit.com/company/press_releases/2003/.)

Intuit reached an agreement earlier this week with Wells Fargo that will provide the company with a better business model for its Premier payroll offering, which has been marketed and sold by Wells Fargo to its customers under the bank's brand. Under the agreement, Intuit has acquired for approximately $29 million all the rights to brand and market the offering to the Wells Fargo customers who currently use Intuit's service. "This agreement provides us with better economics as we work to become a larger and more profitable payroll provider," said Bennett.

Forward-Looking Guidance to Reflect Strength of Second-Quarter Results
"Intuit is executing better and better to drive stronger growth," said Bennett. "As a result, we are updating our guidance." New fiscal 2003 guidance is:

• Revenue of $1.711 billion-$1.771 billion, or growth of 30 percent-35 percent.
• Pro forma operating income of $419 million-$434 million, growth of 53 percent-59 percent, up from previous guidance of 50 percent-58 percent growth.
• Pro forma EPS of $1.38-$1.42, or growth of 50 percent-54 percent, up from previous guidance of 45 percent-50 percent.

Intuit's financial results reflect the highly seasonal nature of its businesses, particularly its tax preparation business. Intuit typically generates most of its revenue and profits in its second and third quarters. The company typically reports a loss in its first and fourth quarters when revenue from its tax businesses is minimal, but operating expenses to develop new products and services remain relatively constant.

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. See Cautions about Forward-Looking Statements below.

Information about Pro Forma Presentation
Intuit always reports pro forma performance to provide investors with an alternative method for assessing ongoing core operating results. Intuit's pro forma results, shown in Tables B1 and B2, are presented for information purposes only and use the same consistent methods from quarter to quarter and year to year. Pro forma results are not computed according to GAAP.

Pro forma operating income always excludes acquisition-related charges, such as amortization of goodwill and intangibles and impairment charges, as well as amortization of purchased software and charges for purchased research and development. Pro forma net income and earnings per share exclude discontinued operations, gains and losses on marketable securities and other investments, as well as 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 generally accepted industry standards for presenting pro forma results, the method Intuit uses may differ from the methods used by other companies.

Conference Call Scripts and Dial-In Information
The script that accompanies the Intuit earnings conference call and a live audio Web-cast of the call is available at www.intuit.com/company/investors. 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 script 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 7827329.