TRACY, Calif.--(Business Wire)--May 24, 2005--In a resounding vote of confidence for online tax preparation and e-filing, Petz Enterprises, Inc. (www.petzent.com) today announced record tax season results for TaxBrain.com (www.taxbrain.com), its online consumer tax service. Paid federal returns grew by 32.2%, outpacing the industry's 13.5% growth this season. In addition, the TaxBrain.com site traffic increased by 9.6% this year to over 1.5 million visitors, revenue increased by 36.5%, while marketing costs decreased by nearly half.

Craig I. Petz, PEI Vice President of Marketing explained, "Taxpayers did considerable comparative shopping, looking at both packaged software and online services, opting to save by using an online solution like TaxBrain.com. Our average cost of an online return was below $60 while H&R Block, Inc., (NYSE:HRB), reported their average fees per client rose to $150.

"TaxBrain.com, on the other hand," he continued, "enjoyed a phenomenal season this year with a streamlined process of new customer acquisition resulting in a 45.5% reduction in marketing costs. We shifted our focus from driving traffic to improving conversion rates with strong service and greater ease of use.

"We are very pleased with results that once again outstripped overall industry gains with a model that values the needs of the customer over raw traffic generation," Mr. Petz added. "With this new focus on customer satisfaction, we were able to increase the number of completed filings thereby reducing the cost of customer acquisition. In the end, we found that focusing on customers delivers better results than pouring money into non-productive brand advertising.

"Our competitors are facing challenges from slowing growth in desktop software sales and declines at the retail tax office, despite a substantial increase in advertising and marketing costs," Mr. Petz said. "Online tax services improve accessibility for the consumer and reduce costs for the retail tax practitioner while delivering above average margins."

About TaxBrain.com®

TaxBrain.com is the only web-based tax solution delivering online preparation, filing, professional assistance and representation in all 50 states. TaxBrain.com is a full-service online tax center providing tax advice, tools, and resources all year to help taxpayers manage their tax burden with greater confidence and ease. For more information visit www.taxbrain.com/press.

About Petz Enterprises, Inc.

Petz Enterprises, Inc. (a closely-held California corporation) is a software development company and a leading provider of tax preparation and filing solutions for the professional and consumer markets, helping to automate and simplify federal, state and local tax compliance. PEI's Crosslink® line of professional tax software products enable tax practitioners and service bureaus to accurately prepare and file large volumes of individual tax returns. Founded in 1974, Tracy, CA-based PEI is dedicated to serving the needs of the professional tax community and individual taxpayers worldwide. For more information, visit http://www.petzent.com.