For Young Taxpayers, E-Filing Means No Pain, Big Gain; National Survey of Young Broadband Users Finds E-Filers Outnumber Paper Filers 3-to-1.

Business Editors/High-Tech Writers

SAN ANTONIO--(BUSINESS WIRE)--March 25, 2004

Saving Time, Quick Refund Help Fuel E-Filing Growth;

Young Professionals, College Students Identify Themselves as

"Broadband Generation"; 70 Percent Manage Money Online

For young, Internet-savvy college students and professionals, having to fill out paper tax forms and stand in post office lines would be as painful as giving up their Internet or cell phones for a week or even being publicly humiliated on a reality TV show, according to a new survey conducted for SBC Communications Inc. (NYSE:SBC).

The national survey of 18- to 30-year-old broadband Internet users finds that 73 percent of those who file their own taxes do so electronically -- outnumbering paper filers more than 3-to-1. Of those who have someone else file their taxes, almost half (45 percent) say it is important for their tax returns to be filed electronically.

More than half of survey respondents (52 percent) say the thought of filing taxes using traditional paper forms is as painful as losing e-mail, Internet access or their cell phones for a week. Eighteen percent compare the pain of paper filing to listening to their parents' music for a weekend, and 13 percent say it would be as bad as getting fired or dumped on reality television.

"There is a whole new generation of taxpayers who grew up with computers, and they recognize the real value of a high-speed Internet connection in saving time and taking care of business," said Deven Nongbri, director, SBC Marketing. "With today's busy lifestyles, time is money, and they're not in the mood to wait for their refunds."

In fact, the survey finds that 57 percent of e-filers do so as soon as they can, compared to just six percent who wait until the last minute to file. Early tax return filers are far more likely to e-file than last minute filers because they know e-filing is a convenient and fast way to prepare their returns and the best way to get their refunds in the bank as quickly as possible. Fifty-two percent say a fast refund is the main reason why they file quickly, and another 41 percent say they file early simply to get the process over with.

Young E-Filers Define Themselves As The "Broadband Generation"

Young Americans' preference for e-filing stems from the importance that high-speed Internet access plays in their lives. When asked which description most accurately reflects their lifestyle and habits, 86 percent of respondents identify themselves as "the broadband generation." More than three out of four respondents (76 percent) also say they are part of "the videogame generation." Thirty-nine percent concede they might also be fairly described as "the slacker generation."

With high-speed Internet having such a significant impact on their lifestyle, a vast majority of the broadband generation also turns to the Internet to manage finances. Three-fourths of survey participants who e-file maintain their bank accounts or pay bills online. They are also much more likely to access billing statements and manage credit card accounts via a broadband connection. The survey finds that young professionals' use of the Internet for financial management includes:

-- 70 percent who manage their bank account online.

-- 65 percent who pay bills online.

-- 60 percent who access billing statements online.

-- 57 percent who manage a credit card account online.

-- 33 percent who manage an investment account online.

"Consumers who e-file are far more likely to appreciate the ease and convenience of using high-speed Internet service to manage finances," said Nongbri. "It's a chain reaction - as they experience the benefits of the Internet in one area, they realize how it can benefit them in other parts of their lives."

Benefits e-filers enjoy include:

-- Receiving refunds faster. E-filers typically get their refunds

within two weeks, while refunds through paper filing can take

six to eight weeks.

-- Preparing and filing tax returns faster, with increased

accuracy.

-- Obtaining immediate acknowledgement of tax return receipt via

e-mail.

-- Receiving the opportunity to qualify for free online filing

services.

Young professionals with broadband Internet service are helping to fuel another record year for online tax filing. According to the Internal Revenue Service, use of e-filing has grown 11 percent over the same period last year. The biggest increase comes from taxpayers who prepare and file their own returns using home computers, up 23 percent since last year. In addition, the number of direct deposit refunds has increased by 10 percent so far this year.

Editor's Note: The survey was conducted for SBC Communications by I/H/R Research Group, which interviewed a nationwide sample of 300 respondents from March 4 - 8, 2004. The margin of error is plus or minus five and one-half percentage points, with a 95 percent confidence level.

SBC Communications Inc. (www.sbc.com) is a diversified communications company, owning several of the world's leading data, voice and Internet services providers. Through world-class networks, SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 30 company, SBC Communications Inc. owns America's leading high-speed DSL provider and one of the nation's leading Internet Service Providers. SBC companies currently serve 55 million access lines nationwide. In addition, SBC companies own 60 percent of America's second-largest wireless company, Cingular Wireless, which serves more than 24 million wireless customers. Internationally, SBC companies have telecommunications investments in 26 countries.

SBC Yahoo! DSL is an information service that combines DSL transport, Internet access and applications from SBC Internet Services, with customized content, services, and applications from Yahoo! Inc., and is not available in all areas. Yahoo!, the Yahoo! logos and other product and service names are the trademarks and/or registered trademarks of Yahoo! Inc. SBC, the SBC logos and other related product and service names are the trademarks and/or registered trademarks of SBC Knowledge Ventures, L.P. All other brand names may be trademarks or registered trademarks of their respective owners. Copyright (c) 2004 SBC Knowledge Ventures, L.P. and Yahoo! Inc. All Rights Reserved.