Intuit Sells Quicken Bill Manager to Princeton eCom; Company Continues to Reshape Business Portfolio.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 16, 2001

Intuit Inc. (NASDAQ:INTU) today announced it has sold its online bill payment and presentment business to Princeton, N.J.-based Princeton eCom.

"We believe online bill payment and presentment represents an important financial revolution for both billers and consumers -- taking a time-consuming task and dramatically simplifying it," said Steve Bennett, Intuit's president and chief executive officer.

"Intuit's agreements with Princeton eCom enable us to continue to fulfill this vision, while providing Intuit with a better business model. We think this arrangement provides Princeton eCom with the tools it needs to focus on growing its business. At the same time, it frees up Intuit's investment in the business while also enabling us to benefit from potential revenue upside. This is yet another example of Intuit's commitment to adjust our business portfolio to create the best value for both customers and investors."

Intuit will continue to offer a comprehensive bill management service to customers on both the desktop and Web. Customers will remain Intuit customers, but later in the year, Princeton eCom will become a provider of bill payment and presentment services on both the desktop and the Web.

Transaction Terms

Under one agreement, Princeton eCom acquired the assets of Intuit's Quicken Bill Manager through the purchase of certain technologies from Intuit and all of the outstanding shares of Venture Finance Software Corp., a wholly owned subsidiary of Intuit. In exchange, Intuit will receive, at Princeton eCom's election in February 2002, either an equity stake in Princeton eCom equivalent to approximately 20 percent of the company's outstanding shares measured shortly after the transaction closes, or cash. The cash payment may come in the form of a single payment in February 2002 equal to the value of the equity stake at that time, or in four annual installments, each in the amount of the value of one-fourth of the equity stake at the time the payment is made. The timing of the payment enables Intuit to comply with other bill payment and presentment commitments. The transaction closed today. Because Princeton eCom is privately held, and because the value of the payments from Princeton eCom could fluctuate over a period of up to four years, Intuit cannot currently calculate a precise dollar value for this component of the transaction.

Intuit and Princeton eCom also entered into other long-term multi-year business agreements.

-- Intuit will offer Web-based Quicken Bill Manager-branded service processed
by Princeton eCom and will share in revenue from the service.

-- Intuit will also receive royalty payments if Princeton eCom licenses the
Web-based user interface technology to third parties.

-- Intuit will bring Princeton eCom on as a provider of bill payment and
presentment processing services for Intuit's Quicken desktop bill
management services.

-- Princeton eCom will receive the right to use the "Powered by Quicken
Bill Manager" mark on third party sites.

The sale of the Quicken Bill Manager business will impact approximately 25 Intuit employees, all of whom will be offered positions at Princeton eCom. Princeton eCom plans to open an office for those employees in the Silicon Valley.

Anticipated Financial Impact

When Intuit gives financial guidance, it has typically taken into account the expected impact of anticipated transactions that have not yet been disclosed. The company's guidance for fiscal 2001 assumed completion of the transactions with Princeton eCom during the second half of fiscal 2001. It is the company's policy not to confirm, update or otherwise comment on expected financial results except in compliance with Regulation FD.

Background on Princeton eCom

Princeton eCom, the first company to present bills on the Internet, is a leading provider of electronic billing and payment services to more than 950 corporations, banks, financial institutions and payment partners, which in turn offer it to consumers. Princeton eCom enables businesses to present their bills and invoices on the Internet and provides consumers and businesses with the ability to access and pay those bills online, over the phone or using a wireless digital device.

About Intuit Inc.

Intuit Inc. (NASDAQ:INTU) is the leading provider of financial software and Web-based services for consumers, small businesses and accounting professionals. Its flagship products and services, including Quicken(R), QuickBooks(R), Quicken TurboTax(R) and Quicken Loans(R) simplify personal finance, small business management and payroll processing, tax preparation and filing, and online consumer mortgages.

Founded in 1983, Intuit has annual revenues of more than $1 billion and reaches 22 million customers with over 5,000 employees in 13 states and four countries. More information can be found at www.Intuit.com.

Risks and Uncertainties Related to Forward-Looking Statements

This press release includes "forward-looking" statements, including but not limited to statements relating to future prospects for the online bill payment and presentment industry, the ability of Princeton eCom to benefit from growth in the industry, and the anticipated benefits to the Company from the announced transactions. For example, statements in the future tense, and statements such as we "believe" or we "think," are forward-looking statements. Forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from the Company's expressed expectations. The Company will not necessarily update the information in this press release if any forward-looking statement later turns out to be inaccurate. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: The widespread adoption and commercial viability of online bill management services may still be years away. If Princeton eCom is unable to successfully grow its business, the value of the consideration the Company is entitled to receive from Princeton eCom in payment for the Quicken Bill Manager assets, as well as the Company's anticipated revenue opportunities from online bill payment and presentment, would likely be reduced. If the consideration consists of Princeton eCom stock, any lack of liquidity for the shares could adversely affect their value. In addition, the Company will be dependent on Princeton eCom to provide the services and support associated with the Quicken Bill Manager offered on Quicken.com and on third party consumer portals. If the Company's ability to meet its commitments to third parties relating to bill payment and presentment services is compromised, or if the Princeton eCom service is not satisfactory, the Company's relationships with third parties and with its customers could be harmed. The Company's anticipated cost reductions as a result of the transactions with Princeton eCom may not occur, particularly if the expenses incurred during the transitional period and to meet the Company's online billing commitments to third parties are higher than currently estimated. Additional information about factors that could affect future results and events is included in the Company's fiscal 2000 Form 10-K and subsequent reports filed by the Company with the Securities and Exchange Commission.

Note to Editors: Intuit, Quicken, QuickBooks, Quicken TurboTax and Quicken Loans, among others, are registered trademarks and/or registered service marks of Intuit Inc. or its subsidiaries. Quicken.com and Quicken Bill Manager, among others, are trademarks and/or service marks of Intuit Inc and its subsidiaries. Any other parties' marks are the property of their respective owners.