Press Release - January 10, 2002

TaxACT 2001 Software Helps Taxpayers Prepare Their Taxes for Free!

TaxACT 2001, the fourth edition of the popular FREE tax preparation software, is now available on the Internet.

Cedar Rapids ,Iowa – 2nd Story Software, Inc., a computer software developer based in Cedar Rapids, Iowa, announces the release of TaxACT 2001. TaxACT is available in both a software and an online (over the web) version. Both versions are free to prepare and print an IRS-approved federal 1040 tax return. For a faster refund, users may e-file their tax return for just $7.95, the lowest price on the web!

TaxACT Standard for Windows 95/98/2000/Me/XP, is a full-featured software program designed specifically for consumers to prepare their tax returns using their computer. TaxACT Standard is available as a download at www.taxact.com.

TaxACT Online, available at www.taxactonline.com, is an Internet program that can be used by anyone who has access to the Internet. Users simply need to set up an account on the TaxACT state-of-the-art secure servers and begin preparing their tax return for free.

Critics agree TaxACT software is easy to use. Kathy Yakal of PC Magazine notes, "Perhaps because the program is less complex, we found TaxACT cleaner and easier to use than its competitors.” And, Mike Hogan of PC World states, “All [TaxACT, Turbo Tax and TaxCut] lead you through intelligently designed—though slightly different—tax interviews with access to individual tax forms. Of the three, 2nd Story’s TaxACT probably does this best."

The free software and online service offered by TaxACT is a no-cost, risk-free way for users to personally experience the ease of preparing one's own taxes and the speed at which users can complete their tax return and receive their refund. TaxACT interviews users, automatically calculates the return, and audits the return pinpointing potential errors or omissions.

Once a user has completed their return, they can print their free tax return, or e-file for only $7.95. The low $7.95 e-file charge puts TaxACT at the forefront for low-cost e-file options. The company’s focus on security and customer communication make it the best overall e-file value in the industry. Security is of utmost importance to 2nd Story Software and is achieved through proprietary and SSL encryption that ensures data is passed and stored securely.

TaxACT is also available in a Deluxe Edition for those customers with more complicated tax situations. TaxACT Deluxe can be downloaded for only $9.95 and includes one free federal e-file, a $7.95 value. State Editions, only $12.95 each, will begin releasing January 16, 2002 for every state that assesses state income tax.