H&R Block Receives Green Light to Offer Banking Products and Services; World's Largest Tax Services Provider Receives Federal Savings Bank Charter Approval

"Offering banking services extends and strengthens the H&R Blockbrand and can benefit our clients who have limited access to basicbanking and savings services," said Mark A. Ernst, H&R Block'schairman and chief executive officer. "The H&R Block Bank will beinstrumental in differentiating our services and reducing ourdependence on third parties who currently fulfill our banking needs."

The bank will provide traditional banking products includingchecking, savings, certificate of deposit accounts and IRAs, as wellas a full range of services including direct deposit, debit card andstored-value card services. The bank also plans to offer prime loanproducts such as fixed-rate and adjustable-rate mortgage loans.

"The H&R Block Bank will offer essential banking products andservices that are simple and affordable," said Kathy Barney, H&R BlockBank's president and chief executive officer. "We look forward tofurther helping our clients achieve their financial goals."

The new bank also will serve as an in-house depository institutionfor certain assets belonging to H&R Block and its subsidiaries.

H&R Block Bank will be headquartered in Kansas City, Mo., andplans to serve clients through a variety of channels, including ATMnetworks, the Internet, telephone banking and a customer service callcenter. Operations are expected to begin by the end of April.

About H&R Block

H&R Block Inc. (NYSE: HRB) is a leading provider of tax,financial, mortgage, accounting and business consulting services andproducts. H&R Block is the world's largest tax services provider,having prepared more than 400 million tax returns since 1955. Thecompany and its subsidiaries generated revenues of $4.4 billion andnet income of $636 million in fiscal year 2005 from operations in fourprincipal business segments: tax preparation and advice via in-office,online and software solutions; investment and financial advisoryservices; retail and wholesale mortgage services; andtax/accounting/business consulting services for mid-sized businesses.Headquartered in Kansas City, Mo., H&R Block markets its services andproducts under three leading brands - H&R Block, Option One and RSMMcGladrey. For more information visit our Online Press Center atwww.hrblock.com.