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Liberty Tax Service Reports Preliminary Tax Season Results

(Monday, March 13, 2006) - In its ninth tax season, Liberty Tax Service's (www.libertytax.com) creative use of its costumed characters remains the vital tool in building a recognizable brand and enticing new customers into 2000 offices in the United States and Canada. Liberty's dominance in neighborhood marketing remains unchallenged this year in the tax industry. The Company reports a 22% increase in U.S. returns prepared, and an 18% increase in office growth this tax season. Liberty Tax has added a net 240 new U.S. offices to accomplish this increase. The Company has demonstrated explosive growth in an industry formerly dominated by tax giant H&R Block ( NYSE:HRB), and Jackson Hewitt (NYSE:JTX). Liberty Tax has grown from 119 Canadian offices in 1997 to 2000 U.S. and Canadian offices today.

Liberty Tax Service has experienced a 6% price increase per return so far in 2006. Due to the continued maturation of Liberty's office network and increased brand awareness, the company reports a decline in the overall level of discounting. This decrease in discounting combined with the average fee increase has produced a 19% increase in average net fee per return.

Liberty Tax Service has invigorated an industry perceived as stodgy and staid, largely due to the competitive force of its visionary CEO and Founder, John Hewitt. The International Franchise Association (IFA) honored Hewitt as Entrepreneur of the Year in February 2006 for his accomplishments over a 37 year career in the tax franchise industry. Hewitt founded two franchise services ranked by Entrepreneur magazine in the top 10 on their latest Franchise 500. He is the only person who has ever achieved this.

"We have achieved a milestone in brand recognition and accolades for our franchise opportunity," said John Hewitt, CEO and Founder of Liberty Tax Service. "It's due to our competitive team of franchisees and employees whose ethics and standards have created value for our basic tax products. The desire to dominate the customer service arena has motivated Liberty to always offer a free guarantee of our tax preparation for customers. We have embraced new and innovative methods of serving our customers, unlike our competitors."

Liberty Tax Service will welcome over 1000 franchisees to its largest company-wide convention ever to be held at the Virginia Beach Convention Center in early June. Liberty Tax Service is headquartered in Virginia Beach, Virginia. The company provides free tax advice, free checking of self-prepared returns at each office. In January 2006, Entrepreneur magazine ranked Liberty Tax Service as #10 on its "Franchise 500" overall list of best franchises. In February 2006, Hispanic Trends magazine named as one of the five top technology–related franchises. The Liberty Tax Service website is www.libertytax.com.

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