TaxACT Press Release - January 10, 2006

From Price to Performance - TaxACT Delivers Fast, Easy and Free Tax Solutions for Everyone

Deluxe Edition Delivers Enhanced Convenience, Value; Standard Edition Provides Free Preparation, Printing and E-file

Cedar Rapids, Iowa - Jan. 10, 2006 - In a dynamic move to make electronic tax preparation available to everyone, 2nd Story Software®, Inc., developers of America's most trusted, value-priced tax preparation software, today introduced the TaxACT® Standard Federal and Deluxe Federal Editions for the 2005 tax season. These enhanced versions offer impressive new features that make filing taxes online fast, easy and - with the Standard edition - free.

"We continue our ongoing commitment to provide taxpayers with the highest-quality, most user-friendly products at unbeatable prices," said Lance Dunn, president of 2nd Story Software. "The quality and simplicity of both editions, and the fact that Standard users can prepare, print and e-file 100% for free this year furthers TaxACT's goal of making electronic tax preparation possible for everyone."

With the nation's complex tax laws and regulations changing every year, taxpayers require cost-effective ways to simplify the tax-preparation process and reduce their April filing deadline stress. For the past eight tax seasons, TaxACT has provided solutions that make preparing taxes both simple and affordable. This year, the improved TaxACT Standard Federal and Deluxe Federal Editions virtually eliminate the stresses associated with preparing federal taxes by offering solutions that meet the needs of all taxpayers with the unparalleled convenience of an online setting. The online versions allow users to access their forms from anywhere - home, work, vacation - providing the flexibility that many demand in today's busy world.

TaxACT Standard Edition takes affordable to a new level by allowing all consumers to prepare, print and e-file entirely for free at www.taxact.com - a first-time offer unmatched in the market. Featuring a simple, seven-step process, all of the forms necessary to prepare a federal tax return, reliable reference tools and automatic flags for inaccurate information, TaxACT Standard Federal also reduces the time and anxiety involved in preparing taxes.

For those who have complex tax situations or require extra tax advice, TaxACT Deluxe Edition includes additional tax preparation guidance, calculators and support features at an incomparable price of $9.95 for the online version or $12.95 for the software version. The Deluxe Edition also includes America's all-time best selling tax guide, J.K. Lasser's Your Income Tax Guide by John Wiley & Sons, Inc.

TaxACT State Editions fully integrate with the Standard and Deluxe Editions, ensuring that the data in your federal form automatically transfers onto state forms, saving time and reducing the headaches of preparing state taxes.

TaxACT has remained dedicated to making tax preparation possible for all taxpayers for the past eight years. The TaxACT® Standard Federal and Deluxe Federal Editions for the 2005 tax season continue this tradition by offering the most convenient and affordable solution available today.

About TaxACT

Approaching its eighth tax season, TaxACT is America's No. 1 value-leader in tax-preparation software and consumer services. TaxACT is the nation's pioneer and most trusted leader of free tax-preparation software and online services, TaxACT is the only product to offer free e-filing services directly to consumers and to provide more free forms, worksheets, and schedules than other tax product. According to Hitwise™, between Feb. 20, 2005 and April 16, 2005, TaxACT Online ranked second in the number of hits among other Web-based tax-preparation services during last year's tax season.

About 2nd Story Software, Inc.

2nd Story Software, a privately held company founded in 1998, is the leader in developing and marketing affordable tax-preparation software and Web-based services directly to consumers. To date, the comprehensive suite of TaxACT products have enabled more than 18 million consumer returns to be filed. It recently completed an $85 million recapitalization with TA Associates, a leading private equity and buyout firm.