Press Release Details

Leading refund lending banks will work with tax preparation company to
offer new, lower-priced products

For Immediate Release (August 21, 2007)

LAS VEGAS – H&R Block today announced it has joined with leading refund
lenders to dramatically lower the cost of refund anticipation loans (RALs) nationwide
to 36 percent APR both through H&R Block offices and other professional tax
preparers.
Last year, H&R Block introduced the industry's first 36 percent APR RAL
disbursed through H&R Block Bank's Emerald Prepaid MasterCard™. This year, at its
12,800 offices, H&R Block will broaden access to that type of RAL, making a 36
percent APR RAL available to all clients.

In addition, H&R Block will introduce access to low-cost RALs through
independent tax preparers who use TaxWorks and 1040Works software from RedGear
Technologies, a recent H&R Block acquisition. These loans will feature a 36 percent
APR, available through this channel. H&R Block is working with leading refund
lending banks as providers of the products.

“Over the past several years we've taken important steps to drive change in
refund lending by lowering fees and improving and simplifying consumer
information,” said Mark Ernst, chairman and CEO of H&R Block. “We believe further
reform is necessary to ensure that consumers have more choices to get a loan when
they need it and at more affordable prices.

“These steps demonstrate the commitment industry leaders have to responsible
lending and promoting responsible practices within the industry,” Ernst added.
“That's what the true professionals in our business want.”

This approach to refund lending is designed to pass economic benefits directly
to consumers, improve disclosures and provide even greater transparency for refund
lending products. The new RAL pricing can save millions of Americans money by
reducing RAL fees and eliminating electronic filing fees at independent tax firms.
The new RAL pricing means clients of independent tax preparers will pay $60
for a refund anticipation loan that last year cost $127 (based on costs for an average
refund loan of $2,700 through professional tax preparation software).

The loan products made available to professional tax preparers through
TaxWorks and 1040Works will be branded ANEW™. The ANEW product line will be
offered to professional tax preparers who support the pricing and disclosure
standards.

“Millions of Americans use professional tax preparers every year,” Ernst said.
“By joining with leading refund lending banks, we can make this product available to
any preparer who supports the disclosure requirements and pricing that will deliver
savings and transparency to their clients.”

H&R Block's recent purchase of TaxWorks has enabled Block to provide
software solutions that include refund lending to the commercial tax preparation
market for the first time. Block also recently acquired ExpressTax, a 300-location tax
preparation franchise business. TaxWorks and ANEW products will be available to all
new Express Tax franchisees in the 2008 tax filing season.

For more information about the ANEW product line, please visit
www.theanewcard.com. For more information about the tax preparation software
used to offer ANEW products, visit www.taxworks.com and www.1040works.com.

About H&R Block
H&R Block Inc. (NYSE: HRB) is a leading provider of tax, accounting, and related financial products and services. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries reported revenues of $4.0 billion and net income from continuing operations of $374.3 million in fiscal year 2007. The company has continuing operations in three principal business segments: Tax Services (income tax return preparation and related services and products via in-office, online and software solutions); Business Services (accounting, tax and business consulting services primarily for midsized companies); and Consumer Financial Services (tax-related banking services along with brokerage services, investment planning and related financial advice). Headquartered in Kansas City, Mo., H&R Block markets its continuing services and products under two leading brands – H&R Block and RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.

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