Intuit Acquires EmployeeMatters

Intuit Inc., a provider of Web-based financial services, Thursday acquired
EmployeeMatters Inc., an online employee administration outsourcing service.

As part of the purchase agreement, EmployeeMatters’ partner company,
FrontLine Capital Group, will receive about $34 million in total
consideration, consisting primarily of Intuit common stock. FrontLine is a
holding company that develops and manages companies servicing small- and
medium-size businesses.

The union will allow EmployeeMatters to expand its business, noted Elliot
Cooperstone, chief
executive officer of EmployeeMatters. “We anticipate that Intuit’s expertise
in the small business market and their extensive customer base will enable
us to take our business to the next level.”

Services offered by EmployeeMatters includes a virtual Human Resources
department enabling clients to effectively manage employee administration
and HR functions, such as payroll, benefits, retirement plans, business
insurance and HR compliance.

The transaction is subject to customary closing conditions, including
certain regulatory approvals, and is expected to close no later than January
31, 2001.