EXHIBIT 99.1
Published on January 29, 2001
EXHIBIT 99.1
PRESS RELEASE
INTUIT COMPLETES SALE OF QUICKENINSURANCE BUSINESS TO INSWEB
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 25, 2001--Intuit Inc. (NASDAQ:INTU
- - news), a leading provider of financial management solutions to small
businesses and consumers, today announced it has completed the sale of selected
assets of its QuickenInsurance(SM) business to InsWeb Corp.(NASDAQ:INSW - news).
Intuit has received a 16.6 percent equity stake in InsWeb, valued at
approximately $11.4 million, based on the closing price of InsWeb's stock
yesterday. Intuit and InsWeb also signed a separate agreement that makes InsWeb
the exclusive consumer insurance aggregator for Intuit's Quicken.com(R) and
QuickenInsurance Web sites and certain consumer desktop products. In exchange,
Intuit will share in associated revenues, which are subject to certain minimums.
Intuit and InsWeb announced they had reached agreement for these transactions on
Nov. 27, 2000.
As publicly stated earlier, Intuit expects no material impact from this
transaction on its fiscal year 2001 revenue. Intuit expects this transaction
will generate an improvement in pro forma operating income between $3 million
and $5 million, distributed approximately evenly between Intuit's third and
fourth fiscal quarter results. Intuit expects costs associated with the
transaction to be approximately $10 million. These one-time costs will not be
reflected in Intuit's pro forma operating results.
"We think these agreements are a win for both Intuit and InsWeb - and we think
Intuit's customers will benefit with InsWeb's solutions," said Steve Bennett,
Intuit's president and chief executive officer, who is expected to be appointed
to the InsWeb Board of Directors. In connection with the receipt of its equity
stake in InsWeb, Intuit has agreed to certain conditions, including restrictions
reselling such shares for a period of at least 18 months, voting the shares and
acquiring additional shares.
About Intuit Inc.
Intuit Inc. (NASDAQ:INTU - news) is the leader in e-finance, including financial
software and Web-based financial services for consumers and small businesses.
Intuit develops and markets QuickBooks, the most popular small business
accounting software; Quicken, the leading personal finance software; and Quicken
TurboTax, the best-selling tax preparation software. An innovator in delivering
Web-based financial tools, Intuit is the leading provider of online tax
preparation and filing and online mortgages. Intuit is also breaking new ground
as a leader in online bill presentment and payment, and in the delivery of its
QuickBooks Internet Gateway platform of connected e-services for small
businesses.
Intuit's Quicken.com Web site (www.quicken.com) is a leading financial site,
offering a comprehensive set of financial news, information and tools, including
insurance, mortgage, investment and tax preparation services. Intuit's products
and services enable individuals, small businesses and financial professionals to
better manage their financial lives and businesses.
This press release includes "forward-looking" statements about future financial
results and other events that have not yet occurred, including but not limited
to statements relating to the expected impact of the transaction on Intuit's
future financial results. For example, statements in the future tense, and
statements such as we "expect" or we "believe," are forward-looking statements.
Investors should be aware that actual results may differ materially from
Intuit's expressed expectations because of risks and uncertainties about the
future. Intuit will not necessarily update the information in this press release
if any forward-looking statement later turns out to be inaccurate. Risks and
uncertainties that may affect future results and performance include the
following. The cessation by Intuit and its subsidiary of the online operations
of its QuickenInsurance business may not result in the planned cost savings, and
further may result in expenses that are beyond those expected by Intuit, thereby
adversely affecting the planned improvement in Intuit's financial performance.
The lack of liquidity of Intuit's investment may adversely affect its value. The
aggregation services and support associated with the online consumer insurance
promoted on Intuit's Quicken.com and QuickenInsurance.com consumer channels will
be provided by a third party (InsWeb), and thus the performance of such services
and support, as well as the payment to Intuit of its share of associated
revenues (including agreed upon minimum amounts) is beyond the control of
Intuit. Additional information about factors that could affect future results
and events is included in Intuit's fiscal 2000 Form 10-K and subsequent reports
filed by Intuit with the Securities and Exchange Commission.
Contact:
Intuit Inc.
Linda Fellows, 650/944-5436 (Investors)
linda_fellows@intuit.com
or
Michael Runzler, 650/944-6962 (Media)
michael_runzler@intuit.com
or
Ketchum for Intuit
Holly Anderson, 615/377-6902 (Media)
holly.anderson@ketchum.com