H&R Block Pitches In To Help Americans Hit by Katrina Claim a Major Tax Benefit

As part of its ongoing commitment to help hard-working Americansimprove their financial lives, H&R Block (NYSE: HRB) is participatingin the Earned Income Tax Credit (EITC) Awareness Program just launchedby the William J. Clinton Foundation. In collaboration with OperationHOPE, another Clinton Foundation partner, H&R Block is providing freetax preparation through its in-office tax professionals to 5,000 low-to middle-income taxpayers who were impacted by Hurricane Katrina andare eligible for the credit. The program runs from March 1 throughApril 17, 2006.

"The financial pressures facing working Americans as they attemptto recover from Hurricane Katrina are unprecedented," said Mark A.Ernst, chairman and chief executive officer of H&R Block. "Weappreciate the commitment President Clinton has made to assist thosewho need help the most, and we're proud to be part of this effort."

The EITC is a key federal tax credit available to millions of low-to middle-income taxpayers. It was established in 1975 to help offsetthe impact of payroll and income taxes on the working poor. Though itcan provide up to $4,400 per working family, many deserving taxpayersdo not claim the credit due to a lack of awareness or filingcomplexity. H&R Block offers all EITC-eligible taxpayers free onlineself-preparation of their tax returns as a member of the Free FilingAlliance (available at www.irs.gov).

Said President Clinton: "The main idea of the EITC is still theold idea of the American Dream, that if you work hard and play by therules, you ought to have a decent life and a chance for your childrento have a better one. I hope this joint initiative helps moreAmericans achieve their dreams and reaches those Americans whose liveswere shattered by last year's hurricanes."

"We're deeply grateful to the Clinton Foundation, H&R Block andthe other organizations that have stepped forward to help the citizensof the Gulf Coast regain their financial footing," said John HopeBryant, founder, chairman and chief executive officer of OperationHOPE. "I challenge other groups and companies to get onboard and helpus overcome the difficulties facing so many of our fellow Americans.This innovative private/public partnership underscores the notion thatdignity centered organizations and companies can indeed find a way todo well and to do good, too."

For tax year 2005, the federal government projects 22 millionworking families nationwide will receive about $40 billion through theEITC, with each family receiving an average of about $1,800. Aboutone-in-four EITC recipients have been H&R Block clients in recentyears.

Even so, the Governmental Accountability Office has estimated thatup to 25 percent of those eligible for the credit fail to claim it.Many of those up to 7 million families do not claim the EITC due to alack of awareness or the complexity of eligibility requirements andtax forms.

H&R Block is committed to raising awareness about the EITC amonglow- to middle-income Americans. In recent years, H&R Block haspartnered with a number of community organizations to increaseparticipation in the EITC program and to provide financial educationand outreach services to working families. These efforts include:

-- City of San Francisco Working Families Credit: H&R Block partnered with the City of San Francisco to fund, sponsor and co-brand a two-year pilot of a local version of the EITC and provide discounted tax preparation services to qualified families. In 2005, eligible families received an estimated payout rate of 10 percent of their federal EITC, equaling about $240 for families with one dependent and about $360 for two or more. The partnership continues this year.

-- City of Miami Anti-Poverty Initiative: H&R Block developed a five-year program in partnership with the City of Miami in 2005 to provide community outreach surrounding EITC and discounted tax preparation services to qualified families. The efforts made during the 2005 tax season accounted for just over $20 million in total refunds, a dramatic increase from the city-wide campaign in 2004, which logged approximately $1.5 million in refunds.

-- Operation HOPE, Los Angeles: H&R Block worked with Operation HOPE to develop a shared referral system, discounted products and financial literacy services for low-income families. The partnership is slated to last four years and is being implemented through five HOPE Centers and 22 H&R Block offices in South Central Los Angeles.

-- ACORN - H&R Block EITC Outreach: H&R Block and the Association of Community Organizations for Reform Now (ACORN) have jointly developed an outreach campaign in 65 communities designed to help more low-income consumers claim the credit.

-- New York City EITC Coalition - EITC Pilot Project: Beginning in 2005, Block partnered with Service Employees International Union local 1199 and a number of other unions to provide coupons for discounted tax preparation services through a program targeting qualified families. This program continues in 2006.

The Clinton Foundation's EITC Awareness Program was conceived as agrassroots outreach campaign targeting the hotels, apartmentcomplexes, relief sites, disaster assistance centers and otherlocations where Hurricane Katrina survivors currently are living. Inaddition to H&R Block, other organizations partnering with the ClintonFoundation in this effort include the ACORN Institute's KatrinaBenefits Access Project, Operation HOPE's Project Restore Hope,Deutsche Bank, E*Trade Financial, The First American Corp., the NewYork Bankers Association and Microsoft.

About H&R Block

H&R Block is a leading provider of tax, financial, mortgage,accounting and business consulting services and products. H&R Block isthe world's largest tax services provider, having prepared more than400 million tax returns since 1955. The company and its subsidiariesgenerated revenues of $4.4 billion and net income of $636 million infiscal year 2005 from operations in four principal business segments:tax preparation and advice via in-office, online and softwaresolutions; investment and financial advisory services; retail andwholesale mortgage services; and tax/accounting/business consultingservices for midsized companies. Headquartered in Kansas City, Mo.,H&R Block markets its services and products under three leadingbrands: H&R Block, Option One and RSM McGladrey. For more information,visit our Online Press Center at www.hrblock.com.

About the Clinton Foundation

The mission of the William J. Clinton Foundation is to strengthenthe capacity of people in the United States and throughout the worldto meet the challenges of global interdependence. To advance thismission, the Clinton Foundation has developed programs andpartnerships in the following areas: Health Security with a focus onHIV/AIDS; Economic Empowerment; Leadership Development and CitizenService; and Racial, Ethnic and Religious Reconciliation.

While in office, President Clinton doubled the EITC, giving morethan 15 million working families a tax cut. In 1998 alone, the EITClifted more than 4 million people -- and more than 2 million children-- out of poverty.

The Clinton Foundation is committed to continuing this and makingsure all eligible Americans are aware of the EITC and how to takeadvantage of it. Working with ACORN, Operation HOPE, and corporateparticipants, the Clinton Foundation will support their programs andpromote taking advantage of the EITC. For more information, visitwww.clintonfoundation.org.

About Operation HOPE, Inc.

Operation HOPE, Inc. (HOPE) is America's first nonprofit socialinvestment bank and a national provider of financial literacy andeconomic empowerment programs. Through ongoing collaborations andlong-term partnerships with leading government, private sector, andcommunity interests, HOPE works to bring self-sufficiency and asustained spirit of revitalization to America's inner-citycommunities. At the core of HOPE's mission to eradicate poverty andempower the wealthless is a movement to establish "Silver Rights" orthe right to financial literacy, access to capital, and equality ofopportunity for the underserved. Three key initiatives work to fulfillHOPE's goals: "Banking on Our Future (BOOF)," HOPE Coalition America(HCA) and HOPE Centers. HOPE Centers are responsible for more than 800new homeowners and small business owners, over $125 million in fundedloans, and in excess of $240 million in commitments for homeownershipand small business loans. In partnership with the U.S. Department ofHomeland Security, the Federal Emergency Management Agency, and anetwork of private and community partners, HOPE Coalition America isHOPE's disaster recovery and financial reconstruction pre and postemergency division. It has provided free financial counseling andcasework services to Americans affected by natural disasters andnational emergencies in 125 cities in 35 states to date. HOPE'sfinancial literacy program BOOF, winner of Oprah's Angel NetworkAward, teaches money management basics to students nationwide throughclassrooms and online. Taken together, these programs make HOPE thenational leader in economic empowerment tools and services for theunderserved in America. HOPE and its programs can be found online atwww.operationhope.org, www.bankingonourfuture.org, andwww.hopecoalitionamerica.org.