FOR IMMEDIATE RELEASE                                                    AT
MONDAY, SEPTEMBER 26, 1994                                   (202) 616-2765
                                                         TDD (202) 514-1888

        JUSTICE WILL NOT CHALLENGE TAX SOFTWARE COMPANY ACQUISITION
        AFTER LEADING COMPANY AGREES TO LICENSE CERTAIN TECHNOLOGY

     WASHINGTON, D.C. -- The Department of Justice's Antitrust
Division said today it will not challenge the acquisition of a
tax preparation software company by Intuit Inc. after Intuit
agreed to license technology allowing a new competitor to enter
the market.
     Intuit Inc. agreed to license the source code for Parsons
Technology Corporation's Personal Tax Edge software and related
assets to Novell Corporation's WordPerfect division.  In light of
this licensing agreement, the Department will not challenge the
proposed acquisition of Parsons by Intuit.
     "Without this agreement permitting a capable new company to
enter the market, Intuit's acquisition of Parsons would have
substantially reduced competition in consumer tax preparation
software, and likely would have caused consumers to pay higher
prices," said Anne K. Bingaman, Assistant Attorney General in
charge of the Antitrust Division.  
     Intuit Inc. of Menlo Park, California, owns ChipSoft Inc.
which makes TurboTax, the leading brand of consumer tax
preparation software.  Parsons, of Hiawatha, Iowa, sells Personal
Tax Edge, the third best-selling brand of consumer tax
preparation software.  Novell of Provo, Utah, intends to
introduce a new consumer tax preparation software product
initially based on the Parsons product under the name "Tax
Saver." 
     "In this case, the parties to the proposed transaction
recognized the need to develop a solution that preserves
competition, and entered into early negotiations with the
Department that ultimately led to a licensing agreement that
protects consumers," Bingaman added.
     In June 1993, ChipSoft dropped its plans to buy another
maker of consumer tax preparation software after the Department
announced its intent to challenge the acquisition.  In November
1993, Intuit restructured its acquisition of ChipSoft after being
warned that the Department was considering a challenge of the
proposed acquisition.
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