Sundeep Kutumbaka and George Bocchetti

 Buy: Limit at $18  Sell: Stop at $20, Limit at $22

 Provides tax, banking, accounting and business consulting services and products  Prepares 1/7 tax returns  Had an office within 5 miles of most Americans  Employs more than 110,000  Has helped clients obtain nearly $30 billion in tax refunds, credits  Founded in 1955  Headquartered in Kansas City, MO

 Tax Services = 74.3% of revenue  Provides tax return preparation services in Unites States, Canada, Australia  Markets TaxCut income tax preparation software  Business Services = 22% of revenue  RSM McGladrey, Inc. (RSM) provides accounting, tax and business consulting services  Consumer Financial Services = 3.5% of revenue  provides retail banking offerings through HRB Bank

 Current Price: $18.08  P/E Ratio:12.07  Beta:0.49  Dividend/ Yield:$0.15/ 3.32%  EPS:$1.50  52-Week Low:$13.73  52-Week High: $25.94  Market Cap: $6.60B  Institutional Ownership:85% Taken from as of 10/04/09http://

 Loss of $130.6 million, or 39 cents per share  Vs. loss of $128.4 million, 39 cents per share a year before  Vs. estimates of loss of 37 cents per share  Typically lose in Q1, Q2 and gain in Q3, Q4  Taxes are seasonal: most revenue from Jan-April  Exacerbated by increase in Tax Services expense  Reaffirmed guidance for FY10  Upgraded September 8 th, 4 days after release

 Largest provider of tax preparation services in the world  Low in their yearly cycle  Just beginning to gain  Respected, trusted brand name  Compared to unknown competition  Unstoppable business  All adults have to file a tax return

 Even small tax changes increase business  Multiple markets:  US, Canada, Australia  Multiple businesses:  Tax services, tax software, banking, business consulting  Cutting down excess businesses  Investment advisement, subprime mortgages

 Trying for new public image  Revamped, professional storefront  More serious advertising campaign ▪ Multiple platforms ▪ Shareholders at last meeting applauded demo ad  Reduced prices for low-income, young clients  Honor federal college credits  Hiring nearly 15,000 tax professionals

 Jackson Hewitt Tax Service, Inc (JTX)  Market cap of only 135M  Less diversified, smaller client base, smaller market  Downgraded at Oppenheimer in August  Drop of 13% in tax return volume in 2009 season  Gilman Ciocia, Inc (GTAX)  Serves mostly middle and upper class  Only in New Jersey, New York, and Florida  Intuit, Inc (INC)  TurboTax software, but no walk-in offices

 Our recommendation: Watch and buy on pull back, at Limit of $15  Sell: Stop at $19, Limit at $22

 Designs, manufactures, markets Invisalign  A method for treating the misalignment of teeth  Alternative to visible, cumbersome braces  Invisalign is regulated by FDA as a Class II medical device  Incorporated in 1997  First sales of Invisalign to orthodontists in 1999  By late 2001, manufactured one million aligners  Headquarters in Santa Clara, CA

 The Invisalign system is comprised of  ClinCheck: creation of digital treatment plans  manufacturing of customized Invisalign aligners  Sells Invisalign directly to consumers, dentists, and/or orthodontists  Also sell retainers, ancillary products  Cleaning material, adjustment tools for Invisalign  Operates in North America, Europe, Asia- Pacific, Latin America, and Japan

 Invisalign Full  Complete, personal treatment  Invisalign Express  Pre-made for various categories of treatment  Invisalign Teen  Aligner wear indicator to gauge patient compliance  Retention  Vivera retainers for Invisalign/non-Invisalign patients  Ancillary Products  Support Invisalign

 To date  trained more than 56,700 doctors  manufactured more than 44 million unique Invisalign aligners  started more than 1,000,000 patients in treatment  reached $1.5 billion in cumulative net revenues  complied IP portfolio of more than 160 patents  provides exclusive education events at more than 60 universities worldwide

 Current Price: $15.82  P/E Ratio:13.61  Beta:2.12  Dividend/ Yield:N/A  EPS:$1.16  52-Week Low:$4.88  52-Week High: $16.45  Market Cap: $1.05B  Institutional Ownership:88% Taken from as of 10/15/09http://

 Q2 Earnings Report released July 23 2  EPS of $  Compared to estimate of $  Revenue of $76.3 million 2  Compared to estimate of $69.4 million 2  27% increase in international revenue 2  Share price rose 14% after release 2  Predicted Q3 earnings in current range 2

YearDateActual Last Avg Estimate $ Surprise 2009Jun Mar Dec Sep Jun Mar

 On a rally  Varied product lineup  Multiple markets  North America, Europe, Asia-Pacific, Latin America, and Japan  Over a million existing clients  And growing

 Upgraded to Buy at Northcoast on Oct 1  Increase in year-over-year case starts  Buy rating reaffirmed at Brean Murray  Recently released new features  Based on customer research and treatment data  Make Invisalign effective for more bite types

 Ended patent litigation with Danaher Corporation's Subsidiary Ormco Corporation  Exclusive agreement to work on combination orthodontic product  Should lead to an increase in sales  Beat estimates in last 6 earnings reports  Will probably beat again on October 22 nd

 3M Company (MMM)  Diversified technology company  No specific product that competes with Invisalign ▪ Nothing invisible  DENTSPLY International, Inc (XRAY)  A few competitive products ▪ Not as extensive a lineup  No marketing ▪ Not as well-known

ALGN: HRB: