Intuit Announces Next Phase of Structural Moves; Organizational Foundation Now in Place

  Intuit Announces Next Phase of Structural Moves; Organizational Foundation
  Now in Place

Company to Divest Financial Services, Healthcare Businesses; Aligns Accountant
           Efforts to Accelerate Global Connected Services Strategy

Business Wire

MOUNTAIN VIEW, Calif. -- July 1, 2013

Intuit Inc. (Nasdaq: INTU) today announced the next step in the company’s
quest to build a strong foundation for future growth.

To focus more sharply on its core businesses, the company is divesting its
Intuit Financial Services business and is announcing plans to sell the Intuit
Health Group.

In addition, the company has realigned the accountant business to provide
increased focus on accelerating the company’s two strategic goals: to be the
world’s small business operating system and to do the nations’ taxes in the
United States and Canada.

“These decisions are the remaining foundational pieces that focus our
organization on our biggest opportunities as we execute our global connected
services strategy,” said Brad Smith, Intuit president and chief executive
officer. “We’ve evolved from a portfolio of business units to an ecosystem of
products and services with unique interdependencies. Working together, these
assets create amazing opportunities to solve important customer problems while
building durable competitive advantage.”

Focus on Strategic Direction

The divestiture of Intuit Financial Services reflects Intuit’s strong
commitment to intensify its focus on small business and consumer tax. As a
result, the company signed a definitive agreement to sell IFS to Thoma Bravo
for $1.025 billion, pending regulatory review.

As part of Thoma Bravo, IFS will be better supported to reach its full
potential in the growing digital banking channel. Intuit intends to use
existing cash and the proceeds of this transaction to accelerate repurchase of
its shares.

Mint.com, currently part of IFS, will remain with Intuit and become part of
the Consumer Ecosystem business unit that includes other consumer products
such as Quicken.

Intuit also plans to sell the Intuit Health Group. While Intuit had considered
healthcare a potential growth opportunity, structural shifts in the market
have evolved in such a way that the business no longer fits within the
refocused strategy, Smith said. The Intuit Health assets will be a better fit
for an organization with a stronger focus on the healthcare industry.

The company expects to classify IFS and Intuit Health Group as discontinued
operations. In fiscal 2012, the two planned divestitures contributed combined
revenue of approximately $320 million. In fiscal 2013, the two planned
divestitures are expected to contribute revenue of approximately $340 million.

Embracing the Power of Accountants

Intuit also announced the realignment of its Accounting Professionals
Division. This builds upon organizational changes announced in May designed to
capitalize on global opportunities and sharpen its focus on its core
businesses. The lineup includes:

  *Two small business divisions pursuing opportunities around the world.
  *Two organizations focused on consumers – Consumer Tax, overseeing the tax
    preparation business in the U.S. and Canada, and the newly formed Consumer
    Ecosystem, focused on solving additional important consumer problems
    beyond tax.
  *And now, two organizations dedicated to accountants, a critical customer
    and influencer group to the company.

The first accounting organization, the Accountant and Advisor Group, will
focus exclusively on building a loyal base of accountants around the globe who
use and recommend Intuit’s small business solutions.

“The role that accountants and advisors play in small businesses’ success has
never been more important,” said Smith. “It will be a critical component as we
pursue our goal to be the world’s small business operating system.”

The second accountant organization, ProTax, will focus on winning the
professional tax category in North America, capitalizing on the shift to cloud
and mobile-based solutions.

“This strengthens our opportunity to work directly with accountants as they
purchase our Lacerte and ProSeries software to help them prepare their
clients’ taxes. And we have opportunities to accelerate growth as accountants
shift online and we expand our “right for my firm” tax software and services
lineup,” Smith said.

These changes, combined with the May realignment, become effective Aug. 1 in
conjunction with the company’s new fiscal year.

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management
solutions for small and mid-sized businesses; financial institutions,
including banks and credit unions; consumers and accounting professionals. Its
flagship products and services, including QuickBooks®, Quicken® and TurboTax®,
simplify small business management and payroll processing, personal finance,
and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading
tax preparation offerings for professional accountants. Intuit Financial
Services helps banks and credit unions grow by providing on-demand solutions
and services that make it easier for consumers and businesses to manage their
money.

Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year
2012. The company has approximately 8,500 employees with major offices in the
United States, Canada, the United Kingdom, India and other locations. More
information can be found at www.intuit.com.

Cautions About Forward-Looking Statements

This press release contains forward-looking statements, including statements
about our refreshed company strategy, strategic outcomes potential
divestitures and organizational realignment and their impact on Intuit’s
business.

Because these forward-looking statements involve risks and uncertainties,
there are important factors that could cause our actual results to differ
materially from the expectations expressed in the forward-looking statements.
These factors include, without limitation, the following: inherent difficulty
in predicting consumer behavior; difficulties in receiving, processing, or
filing customer tax submissions; consumers may not respond as we expected to
our advertising and promotional activities; product introductions and price
competition from our competitors can have unpredictable negative effects on
our revenue, profitability and market position; governmental encroachment in
our tax businesses or other governmental activities or public policy affecting
the preparation and filing of tax returns could negatively affect our
operating results and market position; we may not be able to successfully
innovate and introduce new offerings and business models to meet our growth
and profitability objectives, and current and future offerings may not
adequately address customer needs and may not achieve broad market acceptance,
which could harm our operating results and financial condition; business
interruption or failure of our information technology and communication
systems may impair the availability of our products and services, which may
damage our reputation and harm our future financial results; as we upgrade and
consolidate our customer facing applications and supporting information
technology infrastructure, any problems with these implementations could
interfere with our ability to deliver our offerings; any failure to properly
use and protect personal customer information and data could harm our revenue,
earnings and reputation; if we are unable to develop, manage and maintain
critical third party business relationships, our business may be adversely
affected; increased government regulation of our businesses may harm our
operating results; if we fail to process transactions effectively or fail to
adequately protect against potential fraudulent activities, our revenue and
earnings may be harmed; any significant offering quality problems or delays in
our offerings could harm our revenue, earnings and reputation; our
participation in the Free File Alliance may result in lost revenue
opportunities and cannibalization of our traditional paid franchise; the
continuing global economic downturn may continue to impact consumer and small
business spending, financial institutions and tax filings, which could
negatively affect our revenue and profitability; year-over-year changes in the
total number of tax filings that are submitted to government agencies due to
economic conditions or otherwise may result in lost revenue opportunities; our
revenue and earnings are highly seasonal and the timing of our revenue between
quarters is difficult to predict, which may cause significant quarterly
fluctuations in our financial results; our financial position may not make
repurchasing shares advisable or we may issue additional shares in an
acquisition causing our number of outstanding shares to grow; our inability to
adequately protect our intellectual property rights may weaken our competitive
position and reduce our revenue and earnings; our acquisition and divestiture
activities may disrupt our ongoing business, may involve increased expenses
and may present risks not contemplated at the time of the transactions; our
use of significant amounts of debt to finance acquisitions or other activities
could harm our financial condition and results of operation; and litigation
involving intellectual property, antitrust, shareholder and other matters may
increase our costs. More details about these and other risks that may impact
our business are included in our Form 10-K for fiscal 2012 and in our other
SEC filings. You can locate these reports through our website at
http://investors.intuit.com. Forward-looking statements are based on
information as of July 1, 2013, and we do not undertake any duty to update any
forward-looking statement or other information in these materials.

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Contact:

Intuit Inc.
Matt Rhodes, 650-944-2536 (Investors)
matthew_rhodes@intuit.com
Diane Carlini, 650-944-6251 (Media)
diane_carlini@intuit.com
 
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