Tax Season Gets Off to Strong Start for Online
Preparation and Filing

TaxBrain Online Tax CenterT sets record as first tax service to open before New Years Day

Tracy, CA (December 31, 2002) -- Petz Enterprises, Inc., (PEI) producers of the popular TaxBrainT Online Tax Center, announced today the opening of their online tax service. On New Years Eve, taxpayers began preparing their Federal income tax returns on the web.

"This is a milestone for online tax preparation because we are proving that the internet is the most efficient way to deliver tax services to the public," said Leroy E. Petz, Sr., President and CEO of PEI.

At the TaxBrain Online Tax Center (www.taxbrain.com) taxpayers can now complete their Federal tax returns online for printing and filing on paper. The IRS and most state tax authorities will begin accepting electronic returns on January 10, and by January 24, taxpayers will be able to prepare and file electronic returns for every state.

Benefits of Going Online

Last year, an estimated 4.6 million U.S. taxpayers did their returns on the web. The tax industry expects that number to jump 40% this year to over 6.5 million returns. "Taxpayers are starting to realize that there are tremendous resources available on the web for doing their taxes, commented Petz, and we are seeing web-based tax preparation drawing consumers that had previously paid a retail tax preparer or purchased tax software."

Earlier this week, the Pew Internet & American Life Project (www.pewinternet.org) reported that more Americans than ever expect to interact with governmental agencies via the web. The report states that in March 2000, about 40 million Americans had sought information from state, local, or federal government web sites. By the summer of 2002, that number had grown to an estimated 71 million.

"We are seeing the first real wave of e-government initiatives starting to take hold with the public, and doing our taxes online is one strong indicator of that accelerating trend," continued Petz.

More Than "Software on the Web"

TaxBrain is a full service online tax center delivering news, information, tax guidance and preparation services for tax returns at all levels of complexity. Achieving the full-service vision means providing the pre- and post-filing information and services needed to establish true piece of mind for the taxpayer.

As part of the drive to deliver outstanding customer satisfaction as a full-service provider, the TaxBrain Online Tax Center offers a variety of unique capabilities and services. These include:

More than 150 Federal and State Income Tax Forms: designed to cover more than 90% of taxpayer situations including first time filers, young families, small businesses, investors, and retirees.

Multi-State Return Preparation: fully integrated preparation of both resident and non-resident returns for each of the 44 states that have an income tax.

Guidance and Analysis Beyond Tax Software: step by step guidance from J.K. Lasser's Your Income Tax 2003 by arrangement with John Wiley & Sons, Inc., and tax analysis and tools from SmartMoney.com.

Year to Year Retention of Tax Records: long-term online storage of tax returns and records so clients know their records are always available.

Free Chat Support: instant, and free access to the professional support staff at TaxBrain to help smooth the complexities of the process.

Services Beyond Software On the Web: Long Term Storage, Fax-A-Return, Printed Copies, and SmartCoverage to name just a few of the value added services provided only by the TaxBrain Online Tax Center.

"At TaxBrain, Petz continued, we start by empowering taxpayers with the information and tools required to do a tax return. We then support our clients through the process of gathering their records, completing their worksheets, and filing their tax returns. Finally, we follow-through with ongoing client services.

As an industry we are expecting to see a record breaking year. With our early launch, and a great set of services, we expect the TaxBrain Online Tax Center to be one of the leading sources for online tax preparation on the web."

About TaxBrain Online Tax CenterT

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-TaxT, 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.