Liberty Tax Service Discloses a 9.3% Stake in Jackson Hewitt Tax Servicein 13D Filings

VIRGINIA BEACH, Va.--(Business Wire)--
JTH Tax, Inc., (DBA Liberty Tax Service) announced today that the company has
filed a Schedule 13D with the Securities and Exchange Commission indicating that
it has obtained a 9.3% stake in Jackson Hewitt Tax Service, Inc. (NYSE:JTX). The
company believes that there may be benefits to exploring a potential strategic
transaction with Jackson Hewitt.

Led by tax industry expert John Hewitt, Liberty Tax Service was founded in 1997
after Hewitt and several key employees left Jackson Hewitt just before the
company was sold for $483 million to Cendant Corporation (NYSE:CD). Jackson
Hewitt was spun-off from Cendant in 2004 and trades on the New York Stock
Exchange. Liberty Tax has grown to over 3,000 locations in the United States and
Canada and is currently ranked as the #3 franchise company in the world by
Entrepreneur Magazine.

"We believe there are many interesting synergies possible in working with
Jackson Hewitt," stated John Hewitt.

About Liberty Tax Service

Liberty Tax Service is the fastest growing retail tax preparation company in the
industry`s history, with over 3,000 offices in the United States and Canada.
Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty
Tax Service has prepared over 6,000,000 individual income tax returns. With 40
years of tax industry experience, Hewitt stands as the most experienced CEO in
the tax preparation business, having also founded Jackson Hewitt Tax Service.

Liberty Tax Service (www.libertytax.com) provides computerized income tax
preparation, electronic filing, refund loans, and online filing through eSmart
Tax at www.esmarttax.com. Each office offers customers audit assistance, a money
back guarantee, and free tax return checking. The Liberty Tax Service franchise
opportunity has climbed to #3 on the latest Entrepreneur"Franchise500."

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. The words "believe,"
"could," "expect," "forecast," "anticipate," "estimate," "project," "plan," and
similar expressions identify forward-looking statements that are inherently
subject to risks and uncertainties, some of which cannot be predicted or
quantified. The Company`s actual actions and timing of certain events could
differ materially from those projected in or contemplated by the forward-looking
statements as a result of unforeseen external factors. These factors may
include, but are not limited to, changes in general economic and market
conditions, including the ongoing volatility in the equity and credit markets,
availability of suitable investment opportunities, the actions of third parties
including other investors, fluctuations in interest rates, other general
competitive factors, uncertainty around government policy, and the impact of
regulatory changes.

Liberty Tax Service
Investors:
Mark F. Baumgartner
Chief Financial Officer
757-493-8855
or
Media:
Martha O`Gorman
Chief Marketing Officer
757-301-8022

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