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MECA SOFTWARE ANNOUNCES FOURTH QUARTER RESULTS

 FAIRFIELD, Conn., Oct. 15 /PRNewswire/ -- MECA Software, Inc. (NASDAQ: MECA) today announced that revenues for the fourth quarter of fiscal year 1993, ended June 30, 1993, were $1,044,000. As MECA's products are closely tied to the calendar year-end holiday season and tax preparation periods, a disproportionate amount of the company's revenues are realized in the second and third quarters of its fiscal year.
 Revenues for the fiscal year ended June 30, 1993, were $28,945,000 vs. the $20,596,000 reported for fiscal 1992.
 For the three-month period ended June 30, 1993, MECA reported a net loss of $6,332,000 or $1.40 per share. The company's net loss for fiscal 1993 was $4,123,000 or $.91 per share. During the fourth quarter of fiscal 1993 certain costs related to capitalized software and deferred marketing activities were charged against operating expense as a result of their lack of recoverability. Additionally, the operating results for the three month period ended June 30, 1993 include the costs related to and the impact of the company's failed merger attempt with ChipSoft, Inc.
 On Oct. 12, 1993 MECA announced that it had entered into a definitive merger agreement providing for its acquisition by H&R Block. Under the terms of the merger agreement, a wholly-owned subsidiary of Block will make a cash tender offer for all outstanding shares of MECA common stock at a price of $6.625 per share. If successful, it is anticipated that the merger will be completed prior to the end of calendar 1993.
 MECA Software, Inc. develops, publishes and markets a family of personal and business productivity software designed to assist individuals in managing personal finances, preparing their income taxes and managing personal legal affairs. MECA's products, which include Andrew Tobias' Managing Your Money, Andrew Tobias' TaxCut, Fidelity On- Line Xpress and Hyatt Legal Services Home Lawyer are sold through independent distributors, software specialty chains, mail order outlets and through direct response advertising.
 MECA SOFTWARE, INC.
 Consolidated Statements of Operations
 (unaudited, in thousands except per share data)
 3 months ended 12 months ended
 June 30, June 30,
 1993 1992 1993 1992
 Net revenues $1,044 $5,080 $28,945 $20,596
 Gain (loss) on sale of
 product line (1,161) 0 4,614 0
 Cost of revenues 1,370 1,422 7,651 5,013
 Royalty expense 47 327 2,931 2,198
 Research & development 1,520 1,003 3,696 2,838
 Sales and marketing 4,710 3,285 20,006 10,954
 General & admin. 1,108 782 2,609 2,444
 Amort. of purch. intangibles 0 228 493 417
 Charge for purchased research
 and develop. 0 0 0 4,859
 Total costs and operating
 expenses 8,755 7,047 37,386 28,723
 Operating loss (8,872) (1,967) (3,827) (8,127)
 Interest income (net) 33 45 111 352
 Loss before provision
 (benefit) for income taxes (8,839) (1,922) (3,716) (7,775)
 Provision (benefit) for
 income taxes (2,507) 0 407 (220)
 Net loss $(6,332) $(1,922) $(4,123) $(7,555)
 Net loss per share $(1.40)(43 cents)(91 cents) $(1.70)
 Weighted average common
 shares and equivalents 4,508 4,477 4,526 4,453
 MECA SOFTWARE, INC.
 Consolidated Balance Sheets
 (Unaudited, in thousands)
 June 30 June 30
 1993 1992
 Assets:
 Current assets:
 Cash $4,922 $3,676
 Accounts receivable 938 617
 Taxes Receivable 194 420
 Inventories 516 1,071
 Deferred income tax 0 0
 Other current assets 438 1,253
 Total current assets 7,008 7,037
 Furn., fix. and equip.-net 1,582 2,312
 Goodwill, net of amortization 0 2,535
 Intangible assets-net 32 1,289
 Other assets 51 76
 Total assets $8,673 $13,249
 Liabilities and Shareholder's Equity:
 Current liabilities:
 Accounts payable $2,500 $3,738
 Accrued expenses 1,880 1,678
 Royalties payable 20 481
 Accrued compensation 553 350
 Deferred revenue 3,761 3,518
 Notes payable 105 210
 Total current liabilities 8,819 9,975
 Deferred revenue 519 273
 Notes payable-long term 800 800
 Stockholder's equity:
 Common stock 50 48
 Paid-in-capital 10,854 10,399
 Treasury stock (1,163) (1,163)
 Retained earnings (accum.
 deficit) (11,206) (7,083)
 Total S/H's equity (deficit) (1,465) 2,201
 Total liab. and S/H's equity $8,673 $13,249
 -0- 10/15/93 R
 /CONTACT: Paul D. Harrison, executive vice president of MECA Software, 203-256-5000/
 (MECA)


CO: MECA Software, Inc. ST: Connecticut IN: CPR SU: ERN

CM-DJ -- NE012R -- 3105 10/17/93 16:39 EDT
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Date:Oct 17, 1993
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