RSM McGladrey Acquires Leading Real Estate Tax Firm in Phoenix; Acquisition Positions Growing Firm as a Major Provider of Accounting, Tax and Business Consulting Services to Real Estate Companies in Southwest

Business Wire, Sept 1, 2006

PHOENIX -- RSM McGladrey, Inc., a leading professional services firm providing accounting, tax and consulting services to companies on the move, today announced a deal to acquire local real estate tax firm, Gaughan & Nahom, P.L.C.

A boutique firm, Gaughan & Nahom includes three partners with national accounting firm experience. The firm provides dedicated real estate tax and consulting services throughout Ariz. and the greater Southwest. Its client list reads like a veritable "who's who" of Ariz. real estate developers.

"We believe this acquisition positions RSM McGladrey as the premier provider of real estate accounting, tax and business consulting services in Ariz.," says Dan Williams, managing director of RSM McGladrey's Phoenix office. "The experience and expertise that Bob Gaughan and Robert Nahom bring to the table is invaluable - both to our practice, and to our clients' ultimate success."

"To join RSM McGladrey means our clients will continue to receive the world-class service and strategic business advice a global professional services firm provides," says Bob Gaughan. "Plus, our clients will now have access to the full range of services and resources RSM McGladrey offers including wealth management, international tax services, and pension and benefits administration."

Bob Gaughan and Robert Nahom will be joined by Michael Dempsey as managing directors in RSM McGladrey and partners in the CPA firm of McGladrey & Pullen, LLP. Though separate and independent legal entities, RSM McGladrey and McGladrey & Pullen can work together to serve clients' business needs. RSM McGladrey and McGladrey & Pullen, when considered together, rank as the fifth largest U.S. provider of accounting, tax and business consulting services, with combined revenues of more than $1 billion. "The acquisition of Gaughan & Nahom is a perfect complement to McGladrey & Pullen's strong regional real estate audit practice," says Dan Williams.

The Gaughan & Nahom acquisition makes RSM McGladrey the 2nd largest accounting, tax and business consulting firm in the Phoenix area. RSM McGladrey and McGladrey & Pullen have nearly 8,000 employees in more than 120 offices across the country. The acquisition of Gaughan & Nahom comes nearly a year after RSM McGladrey acquired American Express Tax and Business Services.

Immediately after the acquisition, Gaughan & Nahom employees will conduct business as RSM McGladrey from their current Phoenix office, located at 3131 E. Camelback Road. A move into RSM McGladrey's Phoenix office at 501 North 44th Street is planned for early November, 2006.

About RSM McGladrey: RSM McGladrey, Inc. is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey serves clients' global business needs through its membership in RSM International (an affiliation of separate and independent legal entities). RSM McGladrey is a wholly owned indirect subsidiary of H&R Block, Inc. (NYSE: HRB).

About McGladrey & Pullen: McGladrey & Pullen LLP (a partner-owned CPA firm) delivers audit and attest services. McGladrey & Pullen and RSM McGladrey have an alternative practice structure. Though separate and independent legal entities they work together to serve clients' business needs. When considered together, the two companies rank as the fifth largest provider of accounting, tax and business consulting services.

RSM McGladrey, Inc. and McGladrey & Pullen LLP are member firms of RSM International - an affiliation of independent accounting and consulting firms.