RSM McGladrey Business Services Completes Combination with American Express Tax and Business Services

The combination, announced Aug. 1, creates the largest U.S.accounting, tax and business services organization focused primarilyon the needs of midsized businesses. RSM McGladrey, together with itsattest partner McGladrey & Pullen LLP, will have combined revenues ofmore than $1 billion, making it the fifth largest accounting firm inthe United States. RSM McGladrey now has more than 100 offices in 63markets across the country.

"Midsized business owners will now have a national organizationdedicated to their particular needs," said Steve Tait, RSM McGladreyBusiness Services president. "With additional talented professionalslocated in more U.S. markets, providing expanded services, RSMMcGladrey is prepared to meet the fast-changing needs of midsizedcompanies and their owners."

"The middle market represents the most dynamic sector of theAmerican economy," added Tait. "RSM McGladrey is uniquely positionedto meet their accounting, tax and business consulting needs. Ourexpertise in the manufacturing, wholesale, distribution, financialservice, healthcare, construction/real estate and public sectorindustries can help our clients grow and prosper."

The acquisition of TBS comes as RSM McGladrey continues toexperience profitable growth. During the last quarter, H&R Blockreported that the RSM McGladrey Business Services unit posted a 16percent growth in revenues, marking the eighth straight quarter ofdouble-digit revenue growth year over year.

New COO appointed

Coinciding with today's deal closing, RSM McGladrey also announcedthat Jay Brandzel will serve as chief operating officer overseeing aseamless integration of the former TBS business. He served in asimilar capacity at TBS and has 30 years of accounting and businessservices experience. Brandzel will report to Mike Kirley, who overseesRSM McGladrey's traditional services.

Some TBS offices transferred to H&R Block

Also announced today, eight offices that were part of the TBSacquisition have transferred to H&R Block. The offices, whichprimarily prepare tax returns for individuals and small businesses,fit better with H&R Block Small Business Resources and H&R BlockSpecialty Tax Services.

About RSM McGladrey: RSM McGladrey is a leading provider offinancially focused business services. The RSM McGladrey group ofcompanies offers accounting, tax services, business consulting,retirement resources, employer services, corporate finance, wealthmanagement and financial process outsourcing. RSM McGladrey Inc.serves clients' global business needs through its membership in RSMInternational (an affiliation of separate and independent accountingand consulting firms). RSM McGladrey Business Services is a whollyowned indirect subsidiary of H&R Block (NYSE:HRB).

McGladrey & Pullen LLP (a partner-owned CPA firm) delivers auditand attest services. McGladrey & Pullen and RSM McGladrey have analternative practice structure. Though separate and independent legalentities they can work together to serve clients' business needs. Whenconsidered together, the two companies rank as the fifth largestprovider of accounting, tax and business consulting.