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					                              Financial Technology Sector Transaction News

                             TA Announces $85 mm Recap of 2nd Story Software



CEDAR RAPIDS, IA and BOSTON, MA --- March 30, 2005 --- 2nd Story Software, Inc., the nation’s
pioneer in providing free online tax preparation software and electronic filing services, and TA
Associates, a leading private equity and buyout firm, today announced that TA has completed an $85
million recapitalization of 2nd Story and has become a majority shareholder in the company. Current
owners will maintain a significant minority interest in the company. Through its flagship product line,
TaxACT®, 2nd Story has become an innovator and a leader in the online tax preparation software and
electronic filing markets.

TaxACT products, introduced in 1998, are available via the internet (www.taxact.com) to individual
taxpayers and paid preparers as online tax preparation programs or as downloadable desktop software.
2nd Story pioneered the distribution of high quality free tax preparation software on the internet. It has
built a rapidly growing and profitable business by upgrading free customers to paying customers by
selling Deluxe and State versions of the software, as well as e-filing services. 2nd Story has been an
industry leader in helping the Internal Revenue Service achieve key milestones in its objective of having
70% of all individuals file tax returns electronically by the tax year 2007.

“We are very pleased to partner with TA Associates,” said Lance Dunn, President of 2nd Story Software.
“As the 2004 tax season draws to a close, we are seeing record demand for online tax preparation
software and the TaxACT brand. We are confident that TA’s capital, connections and industry expertise
will prove very beneficial in managing our rapid growth and further solidifying our leadership position as
the leading innovator of low-cost tax preparation software and electronic filing services.”

“Half of all Americans will e-file this year, and those who self-prepare and file electronically with
software are the fastest growing segment of the tax preparation market,” said Todd R. Crockett, a
Principal at TA Associates who will join 2nd Story’s Board of Directors. “The IRS has set targets for 70
percent of all individuals to file tax returns electronically by the year 2007. As the pioneer of free tax
preparation software on the internet, TaxACT has supported this trend and captured an increasing share of
these new customers.”

Approximately 131 million individual tax returns are filed annually in the U.S. The cost of processing
paper returns is high, so federal and state governments have proposed major initiatives to reduce manual
processing in the tax filing system. The IRS has gone to great lengths to increase taxpayer access to e-
filing, to make it as simple and inexpensive as possible, and to encourage private sector innovation and
competition. In 2002, the IRS signed a public-private partnership agreement with the Free File Alliance,
LLC, a group of tax software companies, to provide free electronic preparation and filing for at least 60
percent of all taxpayers who file an individual tax return. TaxACT has been a participant in the Alliance
since its inception.




                                                    The Only Investment Bank
                                            Focused Exclusively on Financial Technology
                                                                   www.ftpartners.com

         The information contained herein has been selected from company press releases or other public sources and may not be provided in its entirety.
                              Financial Technology Sector Transaction News

                             TA Announces $85 mm Recap of 2nd Story Software



“Each software company participating in the Free File Alliance has its own eligibility requirements,” said
Kurt R. Jaggers, a Managing Director at TA Associates who also will join 2nd Story’s Board. “While
many companies limited their offers last year based on income, TaxACT was the only provider to make a
free tax software offer to all taxpayers via the Free File Alliance. This year, other companies are
following 2nd Story’s lead, which is precisely the business model that TaxACT pioneered.”

TA Associates has 37 years of investing experience, focusing on profitable, high growth companies. The
firm has extensive expertise in the internet, software and services sectors, including investments in
AzoogleAds, Datek Online Holdings (Ameritrade Holding Corporation), Expert Software, GlobeOp
Financial Services, IntercontinentalExchange, Inc. (ICE®), ION Trading Group, The Island ECN (Instinet
Group Incorporated), Lava Trading, Q UP (S1 Corporation) and WebSideStory, Inc.

Goodwin Procter LLP served as legal counsel for TA Associates. Cedar Rapids-based Shuttleworth &
Ingersoll PLC provided legal counsel to 2nd Story Software. Minneapolis-based investment bank Greene
Holcomb & Fisher advised 2nd Story in the transaction.

About 2nd Story Software
2nd Story Software, Inc. is a privately-held company founded in 1998 and is the foremost leader in
developing and marketing affordable tax preparation software and Web-based services direct to end
consumers. Via the Web, TaxACT includes the flexibility of online tax preparation services, as well as
the availability of downloadable desktop software. To date, the comprehensive suite of TaxACT products
have enabled over 13 million tax returns to be filed and continues to empower its users to make well-
informed decisions 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.

About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced private equity and buyout
firms. With offices in Boston, Menlo Park and London, the firm manages $6 billion in capital and has
invested in more than 350 companies. TA Associates provides growth equity capital, leveraged
recapitalization and management buyout financing primarily for technology, financial and business
services, healthcare and consumer businesses. More information about TA Associates can be found at
www.ta.com.




                                                    The Only Investment Bank
                                            Focused Exclusively on Financial Technology
                                                                   www.ftpartners.com

         The information contained herein has been selected from company press releases or other public sources and may not be provided in its entirety.