TaxACT(R) 2006 Reports Faster Growth Than the Market

CEDAR RAPIDS, IA -- (MARKET WIRE) -- February 21, 2007 -- 2nd Story Software®, Inc., developers of TaxACT® software, recognized by critics and users alike as being America's #1 value-priced tax preparation software, reports continued growth at a rate faster than the growth of the general consumer tax preparation software industry.

As a trusted and secure source for tax preparation and electronic filing services for millions of taxpayers, TaxACT continues to demonstrate that its unique and unprecedented completely free tax software offer is gaining acceptance by an increasing number of users who opt to e-file their federal income tax return.

As of February 15, 2007, year-to-date, 1,360,312 taxpayers have completed e-filing their own federal tax returns using TaxACT. This is up from 1,189,074 e-filed returns for the same period the year before, and this represents a 14.40% growth year-over-year. At the same time, IRS data indicates that a total of 9,175,870 taxpayers have completed e-filing their own federal returns, up 6.99% over the prior year. This market share growth is a continuation of the tremendous growth TaxACT experienced in 2006, when the number of consumer-prepared federal tax returns e-filed using TaxACT grew to 2,520,742 returns, an increase of 62.7% over the previous year, as compared to total market growth of only 18.9%.

About TaxACT

TaxACT is the pioneer and No. 1 provider of free tax-preparation software and online services. After nearly a decade, TaxACTOnline.com has emerged as the 2nd most visited online destination for tax preparation services(1). Designed to make preparing taxes electronically possible for everyone for little to no-cost, TaxACT was the first to offer free federal electronic tax preparation, printing and electronic filing services directly to all American taxpayers.

About 2nd Story Software, Inc.

2nd Story Software, a privately held company founded in 1998, is critically acclaimed as being a leader in developing and marketing affordable tax-preparation software and Web-based services directly to consumers. The comprehensive suite of TaxACT products continues to empower its users to devise well-informed tax strategies with ease, while looking out for the cost-conscious. More information regarding 2nd Story and the TaxACT product line may be found by visiting www.TaxACT.com.

(1) According to collective week end-reports released by Hitwise™ during the 2004 and 2005 tax seasons, TaxACT Online ranked second in the number of hits it achieved as compared to other monitored Web-based tax-preparation services. More information regarding Hitwise may be viewed by visiting www.hitwise.com.

2nd Story Software, Inc., company and product logos, TaxACT and TaxACT Online, among others, are registered trademarks of 2nd Story Software. Other party trademarks or service marks are the property of their respective owners and should be treated as such.

Contact Information: Contact Information: Philip Nunes Arnold Corporate Communications 617-587-8906 Email Contact