RSM McGladrey, Inc. Unites Seven Regional Accounting Firms Mergers Build Firm's Middle Market Presence in Key Metro Areas.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 7, 2000

RSM McGladrey Inc., a subsidiary of H&R Block Inc. (NYSE: HRB) and a national tax, accounting and consulting firm serving mid-sized businesses, has entered five new metro markets and expanded its presence in Chicago with the addition of the tax, accounting and consulting operations of the following firms:

- BDLS Business Services, Northbrook (Chicago), IL

- C.W. Amos Business Services, Baltimore, MD

- DMJK Business Services, Kansas City, MO

- FERS Business Services, Chicago

- Mullen & Company, Burlington (Boston), MA

- RP Business Services, Blue Bell (Philadelphia), PA

- WS Business Services, Dallas

The addition of these firms to RSM McGladrey will add approximately 850 employees, 12 office locations and more than $90 million in annual revenues.

"A year ago we announced some fairly aggressive growth goals, one of which is to build the leading national firm serving mid-sized business," said Tom Rotherham, chief executive officer of RSM McGladrey, adding that several of the mergers were effective August 1, while others will take place this fall. "We have targeted 25 metro markets we believe are key to accomplishing this goal. These mergers are the first step in that process."

Six of the seven firms integrating with RSM McGladrey were acquired by H&R Block in 1998-99. RSM McGladrey, a subsidiary of H&R Block since August 1999, plans to integrate Block's accounting firm subsidiaries and eventually brand the firms under the RSM McGladrey name.

Mullen & Company is a recently-acquired firm that has been a member of the McGladrey Network, an affiliation of independent accounting firms, for seven years. Mullen & Company was founded in 1968 by Tom Mullen, who has since retired. The firm's nine partners and 85 employees serve clients in a variety of industries, including retail, manufacturing, distribution, professional services and not-for-profits, including the health care and education sectors.

"All of the merging firms share a similar client service philosophy and focus on mid-sized businesses," Rotherham said. "We intend to be the leader in providing the advisory services necessary to help mid-sized businesses succeed."

In addition, the following firms, each of which performs audits and related services, are in the process of combining their operations with McGladrey & Pullen, LLP, a national, independent CPA firm based in Minneapolis, MN:

- Berg, DeMarco, Lewis & Sawatski, LLP, Northbrook (Chicago), IL

- C.W. Amos & Company, LLC, Baltimore, MD

- Donnelly Meiners Jordan Kline P.C., Kansas City, MO

- Friedman Eisenstein Raemer and Schwartz, LLP, Chicago

- Mullen & Company, LLP (to the extent of its audit practice and

related services), Boston, MA

- Rudolph, Palitz, LLC, Blue Bell (Philadelphia), PA

- Wallace Sanders & Company, Dallas

RSM McGladrey and McGladrey & Pullen have a contractual agreement by which RSM McGladrey provides certain administrative services to McGladrey & Pullen. These services will also be provided by the expanded RSM McGladrey to the audit firms that are combining operations with McGladrey & Pullen.

RSM McGladrey has more than 75 offices and 2,300 employees in the United States and is the U.S. member of RSM International, the eighth-largest accounting organization in the world with 550 offices in 75 countries. In addition, RSM McGladrey is affiliated with 80 independent accounting firms through the McGladrey Network.