H&R Block Announces Strategic Realignment of Organization; Preliminary Fiscal 2012 Financial Results

KANSAS CITY, MO, Apr 25 (Marketwire) --
H&R Block, Inc. (NYSE: HRB)

-- Strategic realignment expected to realize net annualized savings of
$85 to $100 million by end of fiscal year 2013
-- Company to record fourth quarter pretax charge for lease termination,
severance and related costs of approximately $30 million, or $0.06 per
share
-- Company expects fiscal 2012 total revenues of approximately $2.9
billion and GAAP diluted earnings per share from continuing operations
of $1.09 to $1.15

H&R Block, Inc. (NYSE: HRB) today announced a broad strategic
realignment to create a more cohesive end-to-end client experience, to
drive better efficiency and accountability throughout the organization,
and to align its resources to balance long-term client and revenue
growth. Overall, the company expects to realize net annualized savings of
$85 to $100 million by the end of fiscal year 2013 as a result of the
strategic realignment.

"Following the completion of my first tax season and a strategic review
of our organization, we believe this realignment is an important next
step in becoming a nimbler, more profitable, and more client-centric
company," said Bill Cobb, H&R Block's President and Chief Executive
Officer. "We have settled on a new organizational structure and
identified more efficient ways to operate. We believe these actions will
allow us to compete more effectively, more quickly respond to our
clients' needs, and invest in our future as we intensify efforts in our
core businesses."

As part of the measure, the company is offering a voluntary separation
program to eligible employees throughout the organization. The company
will review each application for voluntary separation on an individual
basis. In the event the company does not achieve the targeted number of
separations from the voluntary program, involuntary separations will
follow. Overall, the company plans to eliminate approximately 350
full-time positions throughout its Kansas City headquarters and
nationwide field organization. The company also will streamline its
seasonal workforce and close approximately 200 underperforming
company-owned offices.

"We believe offering a voluntary separation program is an important
option to reduce our cost structure," added Cobb. "Changes such as these
are always difficult and we appreciate the hard work and dedication of
all our associates. However, these steps are necessary so we can create a
stronger company, invest in our future, and produce greater value for our
clients and shareholders."

U.S. Client Services

The company also announced an organizational realignment, including the
formation of U.S. Client Services. The four executives leading this unit
will all directly report to Cobb.

"It became clear during our strategic review and benchmarking that the
model of having separate retail and digital leadership is no longer
viable," said Cobb. "Consistent with many other consumer-facing companies
who serve clients effectively through both retail and digital offerings,
we have taken steps that will enable us to drive a more cohesive
end-to-end client experience, and go to market in a seamless fashion for
the 22.2 million clients we serve in the U.S. The four executives who
will lead U.S. Client Services all have a proven track record of
generating strong results, and their leadership, energy and commitment to
our clients will serve us well as we continue our work to position the
company for long-term revenue and earnings growth."

-- In-line with its philosophy of serving clients anywhere, anyway, and
anyhow they choose to be served, the company will integrate the
strategy, planning and development of all forms of U.S. tax services
under the leadership of Jason Houseworth, who was named President of
U.S Tax Services. Over the past two years, Houseworth has led the
company's digital tax operations to cumulative client growth of 26
percent and an estimated 150 basis points of cumulative share gains in
the digital online category. Houseworth joined H&R Block in 2008
and is credited with founding the company's Client Innovation Lab.

-- Susan Ehrlich, President of Financial Services, will continue to lead
the company's efforts to grow its H&R Block Emerald Prepaid
MasterCard(R) and all other forms of financial services offered to
its retail and digital tax clients. She also will continue to have
direct oversight of H&R Block Bank. Ehrlich joined H&R Block
in 2011 after a 20 year career in key leadership roles to develop and
deliver payment and credit solutions for JP Morgan Chase, Sears
Financial Services, WaMu Card Services (Providian Financial), and
Citibank. Ehrlich has been recognized the past three years by American
Banker magazine as one of the 25 Most Powerful Women in Finance.

-- Amy McAnarney has been appointed President of Retail Client Services
and will be squarely focused on driving service delivery of tax and
financial services to the company's 14.9 million U.S. retail clients
throughout its nationwide network of more than 10,000 company-owned
and franchise offices. She has held numerous executive positions since
joining H&R Block in 1997, including Vice President of Finance and
Vice President of Tax Strategy. Most recently, McAnarney served as
Senior Vice President of Operations Support and Franchise Development
where she was accountable for strategy deployment, client experience
development, operations support, and the strategy and development of
the company's franchisee network. She also founded The Tax
Institute(TM) at H&R Block, which quickly developed into a
leading source for objective insights into tax law, policy and
research.

-- Robert Turtledove, Chief Marketing Officer, will continue to drive the
company's client acquisition, retention and growth across U.S. Client
Services by leading the company's brand, online, field, research and
social marketing strategies. Turtledove joined H&R Block in 2009
after more than 25 years of experience in consumer, brand, retail,
digital and international marketing with some of the world's most
iconic brands such as Pepsi, Pizza Hut, Frito Lay and Unilever.

Phil Mazzini, President of Retail Tax Services, has resigned from
the company effective April 30, 2012.

"I am very sorry that Phil has decided to move on, but I understand his
desire to take on new challenges. He did a great job leading the growth
of our U.S. Retail Tax business over the past two years and we wish him
all the best in the future," said Cobb.

Chief Financial Officer

The company also announced it has retained Crist|Kolder Associates to
lead the search for a new Chief Financial Officer. The company's current
CFO, Jeff Brown, will remain with the company and continue to serve as
CFO during the search for a successor. Once a successor is found, Brown
will transition to Chief Accounting and Risk Officer, where he will
oversee all aspects of the company's accounting function and coordinate
its enterprise risk management approach.

"I would really like to thank Jeff for stepping into the CFO role 18
months ago during a period of significant change," said Cobb. "Jeff's
profound knowledge and insight into the business has been a valuable
resource to H&R Block over the past 10 years. I am very pleased that we
are able to continue leveraging his extensive leadership and accounting
experience going forward."

Preliminary Fiscal 2012 Financial Results

H&R Block plans to report its fourth quarter and fiscal 2012 results on
Tuesday, June 26 after the NYSE market close. The company expects to
incur a pretax charge for lease termination, severance and related costs
of approximately $30 million, or $0.06 per share, which will be recorded
in the fiscal fourth quarter ending April 30. The company expects fiscal
2012 total revenues of approximately $2.9 billion and GAAP diluted
earnings from continuing operations of $1.09 to $1.15 per share.

"Over the past year, we have sharpened our strategy, taken steps to
resolve outstanding litigation, and shed non-core assets, which detracted
focus away from our core businesses and negatively impacted our margins,"
said Cobb. "These actions, along with today's realignment resulted in a
number of charges in fiscal 2012. We believe we've essentially cleared
the decks this year to better position us for long-term earnings growth,
margin expansion and improved shareholder returns."

Form 8-K Filing

The company today also filed a Form 8-K with the Securities and Exchange
Commission describing certain items in this press release and other
matters, including an update on Sand Canyon Corporation, an indirect
subsidiary of the company.

Forward-Looking Statements

This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical or
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"should," "could" or "may." Forward-looking statements provide
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events or results. They may include estimates of revenues, income,
earnings per share, capital expenditures, dividends, liquidity, capital
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of assumptions underlying any of the above. All forward-looking
statements speak only as of the date they are made and reflect the
company's good faith beliefs, assumptions and expectations, but they are
not guarantees of future performance. Furthermore, the company disclaims
any obligation to publicly update or revise any forward-looking statement
to reflect changes in underlying assumptions or factors, of new
information, data or methods, future events or other changes, except as
required by federal securities laws. By their nature, forward-looking
statements are subject to risks and uncertainties. For a discussion of
these and other factors that could cause the company's future results to
differ materially from any forward-looking statements, see the section
entitled "Risk Factors" in the company's 2011 Annual Report on Form 10-K
and in other filings by the company with the Securities and Exchange
Commission.

About H&R Block
H&R Block, Inc. (NYSE: HRB) has prepared more than 575
million tax returns worldwide since 1955, making it the country's largest
tax services provider. In fiscal 2011, H&R Block had annual revenues of
nearly $3 billion and prepared more than 24.5 million tax returns
worldwide, including Canada and Australia. Tax return preparation
services are provided in company-owned and franchise retail tax offices
by approximately 100,000 professional tax preparers, and through H&R
Block At Home(TM) digital products. H&R Block Bank provides affordable
banking products and services. For more information, visit the H&R Block
Online Press Center.

For Further Information

Investor Relations:
Derek Drysdale
(816) 854-4513
derek.drysdale@hrblock.com

Media Relations:
Gene King
(816) 854-4672
gene.king@hrblock.com

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