Petz Enterprises Says Non-Profit Study Shows
Americans Spend 5.8 Billion Hours and $194 Billion
Filing Federal Income Tax Returns

Typical TaxBrain™ Online Tax Center User spends only 40 minutes and less than $50.00!

TRACY, Calif.--(BUSINESS WIRE)--Oct. 21, 2002--Petz Enterprises, Inc. producers of the popular TaxBrain™ Online Tax Center announced findings from a recently completed survey by the Tax Foundation, declaring, "In 2002 individuals, businesses and non-profits will spend an estimated 5.8 billion hours complying with the federal income tax code. . .with an estimated compliance cost of over $194 billion."

A separate report from the Internal Revenue Service points out that on average, individual taxpayers spend approximately 17 hours preparing and filing their federal taxes every year. With more than 130 million individual taxpayers in the United States, over 2 billion hours are consumed every year just to prepare federal tax returns. The average cost per person for completing their income tax return is $662.

According to Leroy E. Petz, Sr., CEO of Petz Enterprises, "We assumed that among the advantages of preparing and filing income tax returns online would be time and money savings. However, we did not realize the substantial reduction TaxBrain could provide, shrinking an average of 17 hours of preparation time to under 40 minutes per return at a cost below $40. The IRS initiatives currently being deployed encourage more online tax preparation, making this change in our culture as significant as the advent of online banking, travel arrangements, and email."

According to the IRS Paperwork Reduction Act, taxpayers should expect to spend at least 6 1/2 hours preparing a simple form 1040. That 6 hours does not include the 3 1/2 hours of recordkeeping or the minimum of 3 1/2 hours learning about the law and form. Mr. Petz added, "Not only does the TaxBrain Online Tax Center speed up the process of preparing a tax return, electronic filing speeds up the refund process. Typically, about 72% of taxpayers receive refunds averaging over $1,900. IRS refunds can be directly deposited to the filer's bank account in as little as 10-14 days when electronically filed. Due to the stress of this year's economic situation, taxpayers are feeling an increased amount of pressure to get their tax refund fast. Form 1040 filers often use deductions as a method of savings, deferring major purchases until the tax refund is received. This year, we are expecting to see a significant increase in filings that will result in refunds."

More information about The Tax Foundation and the report referenced herein can be found at www.taxfoundation.org.

About TaxBrain Online Tax Center

The TaxBrain Online Tax Center provides tax advice, tools, and resources all year to help taxpayers manage their tax burden with greater confidence and ease. TaxBrain is the only web-based tax solution that delivers online preparation, filing, professional assistance and representation for taxpayers in all 50 states. Launched in 2000, TaxBrain delivers the vision of a fully integrated tax center that accommodates the schedule and needs of the busy American lifestyle. In 2002, TaxBrain emerged as one of the most popular services for online tax preparation and filing available on the web. For more information, visit www.taxbrain.com.

About Petz Enterprises, Inc.

Petz Enterprises, Inc. (a closely-held California corporation) is 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. At the IRS Tax Forum, PEI announced the availability of V-Tax™, the world's first online software designed exclusively for professional tax preparers serving large numbers of individuals from multiple locations

Founded in 1974 and based in Tracy, California, PEI is dedicated to serving the needs of the professional tax community and individual taxpayers worldwide. For more information, visit www.petzent.com.