TAX TECHNOLOGIES DOUBLES WEB INFRASTRUCTURE FOR HOSTED TAX COMPLIANCE AND PLANNING SOFTWARE APPLICATIONS

Haworth, NJ, October 31, 2001 – Tax Technologies Inc., a leading provider of Internet/Intranet-based tax software, today announced it has acquired the equipment necessary to double the server infrastructure that supports its hosted suite of tax applications, Tax Series ^TM (www.taxseries.com). This upgrade will benefit existing and new clients of the hosted offerings, primarily Fortune 500 companies, and is indicative of the growth and acceptance of the Tax Technologies offerings.

"While other vendors are just starting to realize the significance of the web for the tax department, Tax Technologies is extending our lead and assuring an easy deployment of web solutions while offering the best performance alternatives for the enterprise customer," says JD Choi, Tax Technologies President and CEO. "We are investing in our client’s success and building on our experience developing and hosting web-native tax applications on the Internet."

Early in the Tax Year 2000 compliance season, Tax Technologies became the first vendor to deliver web-native software for use by corporate tax departments and accounting firms preparing corporate tax returns. The offering was very well received and most large tax departments opted for the hosted offering to ease deployment, increase availability, and reduce costs – in most cases, a tax department can begin using the hosted offering within hours of signing up for the service. This upgrade further improves the hosted offering.

"The recent entry of Deloitte & Touche in this market with its CORPTAX(R) ETS (Enterprise Tax System) product reconfirms our business assessment that the future of tax preparation and planning software resides in a web-native product," continues JD Choi. "Unlike our competition, our hosted ASP model for deployment greatly reduces the total cost of ownership, speeds installation, and allows for the rapid introduction of software enhancements. While we continue to support those companies that opt to deploy the application on a corporate intranet, our experience has shown that most companies prefer the simplicity of a hosted deployment for highly specialized vertical applications. We will do everything in our power to make our hosted offering as easy as possible for our clients."

Hardware acquired to boost the Tax Series hosted offering includes web servers, application servers, storage servers, database servers, networking equipment, and security devices. During the peak of the Tax Year 2000 compliance season, existing servers only utilized a small fraction of existing capacity; however, this acquisition represents a significant additional investment by Tax Technologies and paves the way to exceed forecasted usage requirements from new and existing clients. The equipment is currently in staging and will be deployed prior to the start of the next tax season, in first quarter 2002.

The acquisition also expands disaster recovery plans, reducing the points of failure and simplifying transition to a redundant hosting center if necessary. "In the wake of the September 11 attacks, every web service provider, including corporate IT departments supporting intranet applications, should re-assess their disaster recovery plans. While we were able to maintain consistent service during the September events, we recognize the need to reduce the amount of time required to bring a secondary facility online if necessary," says Jeff Wenger, Tax Technologies Vice President and Chief Technology Officer. "With this acquisition, we are able to bring our secondary facility online within one hour."

Tax Series consists of a full suite of web-native tax software products to simplify domestic and international tax compliance and planning. With a web-based delivery, tax departments can complete tax work anywhere, anytime using the web browser. In addition, because the software is optimized for the web, it works well on even a slow, dial-up connection without the need for additional software or high-end equipment. Tax departments can opt to use the products over the Internet with the hosted offering, or may elect to deploy to their corporate intranet. Tax Technologies continues to team with IBM e-business Hosting to offer the suite of hosted applications. Pricing varies based on corporate complexity and functionality needs.

For more information, companies or accounting firms can call (866) 239-4884, e-mail info@taxtechnologies.com or visit www.taxseries.com.

About Tax Technologies

Tax Technologies, Inc. is a technology-driven tax services company and leading provider of Internet/Intranet-based tax software. With a variety of Fortune 500 clients using its suite of web-native tax software products (TaxSeries) and audit products (AuditTracker), Tax Technologies assists with the preparation of tax returns, the improvement of tax process, implementation of tax software, and the development of custom applications to meet client’s tax and financial reporting demands.

The company’s headquarters are in Haworth, New Jersey, with the technology headquarters in Bradenton, Florida. Further company information is available at www.taxtechnologies.com.