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Business Description
H&R Block, Inc. is a diversified company with subsidiaries providing tax services and financial advice, investment and mortgage products and services and business and consulting services. In the fiscal year ended April 30, 2002, the Company's tax subsidiaries and their franchisees served 19.4 million taxpayers through its nearly 10,400 offices located in the United States, Canada, Australia and the United Kingdom. Another 3.4 million clients utilized the tax software program, TaxCut from H&R Block, and the online tax preparation service. Investment services and securities products are offered through H&R Block Financial Advisors, Inc. H&R Block Mortgage Corporation and Option One Mortgage Corporation offer a full range of home mortgage products and services. RSM McGladrey, Inc. is a national accounting, tax and consulting firm primarily serving mid-sized businesses.

Financial Information
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 7/31/02, revenues rose 31% to $431.4 million. Net loss decreased 69% to $9.5 million. Results reflect higher gain on the sale of mortgage loans, lower interest expense and a reduction in bad debt costs.