New TaxACT(R) 2007 -- Here to Help You Do Your Taxes!

CEDAR RAPIDS, IA--(Marketwire - January 8, 2008) - 2nd Story Software®, Inc., developers of TaxACT® and pioneers of totally free federal tax preparation software, announces the release of TaxACT Standard and Deluxe Editions for the 2007 tax season. Taxpayers using TaxACT Standard can prepare, print and e-file their federal return today for free. For the fastest refund, TaxACT customers who opt to use direct deposit and e-file can rest easy knowing no other method will help them to get a faster tax refund -- in as few as 8 days.(1)

"TaxACT Standard continues to be a value leader in tax preparation software for taxpayers -- making it free for everyone to prepare, print and e-file a federal return. This season our principal focus for improving TaxACT Deluxe reflects our desire to deliver a total tax solution. For the Deluxe Edition, we've expanded life event help topics and incorporated additional guidance and search features -- giving taxpayers a greater ability to prepare their own tax return with ease," says Lance Dunn, CPA and President of 2nd Story Software, Inc.

"No matter how comprehensive we believe TaxACT's design to be, some taxpayers will have more in-depth, very specific tax questions -- unique to their tax situation. Our solution is one-on-one tax help provided by our in-house tax experts who stand ready to provide taxpayers with the guidance they need to file their return with confidence. Our new TaxPayer Support™ service offers tax guidance for both federal and state issues."(2)

TaxACT users have the added assurance of knowing that TaxACT's TaxPayer Support is not governed by the time it may take to answer a question or by limiting the number of questions users may ask. No other leading tax software package offers unlimited tax help to its customers at no additional cost -- making this a unique and revolutionary feature.

TaxACT 2007 Products

Both Standard and Deluxe Editions include complex forms, such as forms for Business Income, Capital Gains, Rental Property, itemized deductions, depreciation, and much more.

TaxACT State Editions fully integrate with the Standard and Deluxe Editions, ensuring that the data from your federal forms automatically transfers onto state forms -- saving time and reducing the opportunity for mistakes.

TaxACT 2007 Standard

The pioneer of totally free federal tax-preparation software and online services, TaxACT Standard is free of restrictions. All American taxpayers can use TaxACT Standard to prepare, print, and e-file a federal return completely free-of-charge at www.TaxACT.com. TaxACT Standard includes the forms, schedules and worksheets filers need to prepare 1040, 1040A and 1040EZ Individual Income Tax Returns. With its user-friendly, interview-like format, TaxACT is designed to make tax preparation fast, easy and reliable by providing extensive reference tools and automatic alerts that meticulously inspect returns for errors, incomplete information and omissions.

TaxACT 2007 Deluxe

TaxACT's Deluxe Edition provides access to more in-depth help and support features, advanced calculators, reports, extra advice and guidance systems. Some new features exclusively available in Deluxe 2007 include:

--  New! TaxACT TaxPayer Support. Doing your taxes is stressful --
    especially when you're stumped by a tax question. Many do-it-yourselfers
    need the guidance of a tax specialist to walk them through a specific tax
    situation. Via phone or e-mail, TaxACT TaxPayer Support provides Deluxe and
    State purchasers access to a highly qualified panel of TaxACT experts at no
    additional cost.
    
--  Enhanced! Life Events Guidance. Life can turn on a dime. Get the
    direction you need to manage the events that have an impact on your unique
    tax situation. Pinpoint the deductions and credits you're eligible to
    receive this tax season with even greater precision while spending less
    time preparing your tax return. This season, TaxACT expands its guidance
    and tax consequences for 15 major New Life Event categories, including:
    Bankruptcy, Child Care Expenses, Community Property Sales, First Job/First
    Time Filing, Foreclosure/Abandonment, Foreign Nationals, Hosting an
    Exchange Student, Major Illness, Military, Multiple State Filings, Non-
    business Bad Debt, Purchase A Vehicle, Received an IRS Notice, Received Tip
    Income and Sold A Home.
    
--  New! "Learn More" Self-help Feature. Get answers to your questions
    faster! Help is on the way with the new "Learn More" link on Quick Q&A
    Topics.
    

About TaxACT

Dedicated to providing consumers with a complete Web-based tax resource for a decade, TaxACTOnline.com is the 2nd most visited online destination for tax preparation services.(3) 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) In general, the IRS estimates it takes 8-15 days for taxpayers who use e-file and direct deposit to receive their federal tax refund from an accepted tax return. Some IRS processing delays may occur for tax year 2007. (2) TaxPayer Support is available during primary tax season Customer Service hours. As with all products and services, 2nd Story reserves the right to change pricing and service parameters. Depending on the amount of research needed to respond, Tax Support response time may take 24 to 48 hours. TaxPayer Support is available to TaxACT Deluxe and State users via email and phone, and to TaxACT Standard users via e-mail only. (3) According to collective week end-reports released by Hitwise™ during the 2004, 2005, 2006 primary tax seasons, TaxACT Online ranked second in the percentage of traffic it received 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.

As a practical note, taxpayers are encouraged to consult a legal or tax professional if in doubt. TaxACT provides general guidance and not legal or specific tax advice.

Contact Information: Contact Information Stephanie Behrends Public Relations Manager 2nd Story Software, Inc. Phone: (319) 373-3600 Email: