Xpitax Closes 2004 Tax Season with Significant Growth and New Service Offerings.

Business Editors

BRAINTREE, Mass.--(BUSINESS WIRE)--June 8, 2004

Leading Provider of Outsourcing Tax Preparation Realizes a 400

Percent Jump in Tax Returns and Customer-base

Xpitax, the leading provider of outsourcing and workflow processes for individual,

corporate, partnership and trust tax return preparation, today announced strong momentum and growth in Q1 2004. The company experienced a 400 percent jump in its customer-base and tax returns flowing through its system, up from 2,500 in 2003 to 10,000 in 2004. Xpitax expects continued growth of its customer-base, which is comprised of sole-practitioners to national firms.

Outsourcing is a tool that is becoming an integral part of the day-to-day operations of the average accounting firm. Xpitax's momentum is evidence of the growing trend among CPAs to outsource tax preparation work to remain strategic and competitive. The company attributes its success in early 2004 to its workflow technology, the Xpitax Client Manager (Xcm).

Xcm version 2.0 became generally available in late-January 2004 and has received tremendous customer traction. Through the use of the Xcm and outsourcing, CPAs are not only dramatically improving their efficiency in processing their in-house tax returns but are also dramatically reducing their costs by outsourcing their tax returns. The use of the Xcm and outsourcing enables firms to expand into strategic consulting and financial service opportunities, rather than be bogged down performing mundane compliance work. Outsourcing allows firms to attract and retain talent by bringing quality of life back to the accounting industry. Accountants, who normally work 12-hour days during peak tax season, go home at decent hours because of the work and time saved through outsourcing.

"Outsourcing is a key component to resolve staffing problems CPA firms are facing today," said Laura Barooshian of Dicicco Gulman & Company, LLP. "With fewer college students entering the accounting profession and a tight labor market in the Boston area we realized we needed to look to another source, Xpitax, for tax return preparation. This year, we sent a number of individual returns through the system, and next year, we expect to increase the number and type of returns being outsourced. This is a strategic initiative for us. We found the Xcm system helpful in managing our paperless office and outsourced tax returns."

The Xcm is software made for CPAs by CPAs to improve client services. "It was a great first quarter for us, and we believe we'll continue to attract customers as our solution is custom-built to address the specific needs of CPAs," said Mark Albrecht, CEO, Xpitax. "Outsourcing is allowing firms to become more efficient, resulting in the ability to expand their services beyond traditional tax returns, to more strategic, consulting services. We plan to continue enhancing the Xcm and expanding our services to touch on key needs of CPAs today. Some of the new services we are offering over the summer include bookkeeping and write-up solutions, as well as services for the audit groups within CPA firms."

About Xpitax

Xpitax is the leader in developing workflow and outsourcing solutions for the accounting industry. The organization helps accounting firms increase profits by streamlining the tax return preparation processes via a secure Web application that tracks and outsources tax returns to preparers through an automated workflow process. Key benefits include cost savings, greater efficiency in workflow, unlimited work force and improved quality of life. Xpitax, a privately held company, is headquartered in Braintree, Massachusetts. For additional information, please visit www.xpitax.com.