H&R Block, Inc.
Industry: Personal Services

H&R Block Inc.is a diversified company with subsidiaries that deliver tax, financial, mortgage and business products and services. As the world's largest tax services company, H&R Block served nearly 21 million clients in the U.S. and 11 countries in 2003. H&R Block is the only major company that offers a full range of software, online and in-office tax solutions, combined with personalized financial advice about retirement savings, home ownership, and other opportunities to help clients build a better financial future. H&R Block Financial Advisors Inc. offers investment services and securities products. With more than 1,000 financial advisors serving clients at more than 150 offices, it is a member NYSE, SIPC, a registered broker-dealer and investment advisor. H&R Block Inc. is not a registered broker-dealer. H&R Block Mortgage Corp offers a full range of retail mortgage products. Option One Mortgage Corp. provides mortgage services and offers wholesale mortgage products through large financial institutions and a network of 24,000 independent mortgage brokers. RSM McGladrey Business Services Inc. and its subsidiaries serve mid-sized businesses and their owners with tax, accounting and business consulting services, as well as personal wealth management services.

Business Summary
H&R Block, Inc. (H&R Block) is a diversified company delivering tax products and services and financial advice, investment and mortgage products and services, and business and consulting services. The Company's tax services segments provide income tax return preparation services, electronic filing services and other services and products related to income tax return preparation to the general public in the United States, Canada, Australia and the United Kingdom. H&R Block also offers investment services and securitizies products through its subsidiary, H&R Block Financial Advisors, Inc (HRBFA). H&R Block's mortgage services segment offers a range of home mortgage products and services through Option One Mortgage Corporation and H&R Block Mortgage Corporation (HRBMC). RSM McGladrey Business Services, Inc. (RSM). H&R Block operates in five segments: Tax Services, Mortgage Services, Business Services, Investment Services and International Tax Services.

Financial Summary
HRB is a holding company whose subsidiaries provide tax-related services, investment services through broker- dealers, mortgage services, personal productivity software, accounting and consulting services to business clients. For the three months ended 7/31/05, revenues rose 26% to $615M. Net loss fell 23% to $28.3M. Results reflect an increase in service revenues and higher gains on the sale of mortgage assets, partially offset by an increase in S/G/A expenses.