Press Release - January 19, 1999

Prepare Your Taxes for FREE –– With TaxACT ‘98

This year your tax return is on the house!

Marion, Iowa – 2nd Story Software, Inc., a computer software developer based in Marion, Iowa, announces its entry into the personal tax preparation software market by offering a FREE tax product –– TaxACT ‘98. The tax software is a full-featured alternative to similar tax packages such as Turbo Tax by Intuit, Inc and TaxCut by Block Financial currently available to consumers. The free product is not limited in any way. Users can prepare, print and file paper or e-file returns with TaxACT ‘98.

2nd Story Software is taking advantage of the convenient distribution channel offered by the Internet to market and deliver its product. Consumers can visit the company’s website, www.taxact.com, download TaxACT ‘98 directly to their home computer, and have everything they need to complete their 1998 taxes –– all at absolutely no charge.

“TaxACT ‘98 gives consumers an affordable alternative to the current selection of higher-priced tax preparation software,” says Lance Dunn, president of 2nd Story Software. “We’re excited to be able to offer our software at extremely low prices. And we think being able to download it directly from the Internet is an added bonus for consumers; They won’t have to leave home to shop and everything they need for completing their 1998 taxes can be found on our website.”

The software package is available for Windows 95 and Windows 98, offering over 80 forms, schedules and worksheets that consumers may need to complete their taxes.

A feature called Federal QnA (Questions and Answers) guides users through the tax preparation process by using an interview-style approach to gather the necessary information. The program asks a series of questions necessary to complete the tax forms, then automatically calculates the return based on the users answers. Or users may skip the Federal QnA and enter data directly onto selected forms.

As the return is completed, the program automatically audits the return and alerts the user of missing data. When finished, users can print and mail their own IRS-approved forms and schedules, or they can file their return electronically. Electronic filing cuts down on errors and speeds the processing of returns and refunds. Filing returns electronically will cost users only $7.95 per return (5 return maximum).

TaxACT is updated for all 1998 tax law changes and the software can be used for an unlimited number of tax returns. Online program help is just a mouse click away. Plus, the software includes links to Internet sites offering tax saving advice and tips.

In addition to the free TaxACT product, 2nd Story Software offers two other versions of TaxACT: the TaxACT ‘98 Deluxe Version and the TaxACT ‘98 State Versions.

TaxACT ‘98 Deluxe is only $9.95 and contains all the same features as the free TAxACT, plus:

Life Events to help determine how major live events affect taxes.
Tax Advisors
Accuracy Guaranteed
Married Filing Joint vs. Separate Comparison
What-If Scenario
Tax Watch for 1999
and more!

State versions are also available for twenty different states. TaxACT ‘98 States are $12.95 per download and will be available beginning January 15, 1999. Information entered for the federal forms will be automatically transferred into the state forms, so there will be no duplication of effort for the user.

TaxACT '98 is available on shareware sites including CNET's Download.com, ZDNet's Hotfiles.com and CMP's Filemine.com. TaxACT '98 Deluxe and State are featured at many online retail sites, including BuySoftware.com and TryandBuy.com by TechWave, SoftwareNow.net, Egghead.com, BuyDirect.com, Cyberian Outpost, Beyond.com, SoftwareBuyline.com and the more than 1,000 online retailers in the Digital River network.

More information on 2nd Story Software, Inc. and TaxACT ‘98 can be found at the company’s website, http://www.taxact.com. 2nd Story Software is located at 642 10th Street, Suite 202, Marion, Iowa, 52302.