Date: 2009-03-12

Jackson Hewitt Suspends Quarterly Dividend

PARSIPPANY, N.J., March 12 /PRNewswire-FirstCall/ -- Consistent with Jackson Hewitt's (Jackson Hewitt Tax Service Inc.) (NYSE: JTX) overall efforts to realign resources and enhance its growth prospects for fiscal 2010 and beyond, the Company announced that its Board of Directors has voted to suspend the Company's $0.18 per share quarterly common stock dividend. This action will enable Jackson Hewitt to incrementally retain just over $20 million per year.

"By conserving capital, enhancing liquidity and strengthening our balance sheet, the suspension of our dividend will provide us with additional resources to devote to our plans to improve our performance, including the development of an online presence and the expansion of our retail distribution base," stated Michael C. Yerington, Jackson Hewitt's president and chief executive officer.

Jackson Hewitt's Board of Directors will consider reinstating a common stock dividend when the Company's balance sheet and overall financial strength have improved.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,600 franchised and company-owned offices throughout the United States during the 2009 Tax Season, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey. More information may be obtained at www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service(R) office nearest to you, call 1-800-234-1040.

SOURCE Jackson Hewitt Tax Service Inc.

CONTACT: Investor Relations, David G. Weselcouch, Vice President, Treasury and Investor Relations, +1-973-630-0821; or Media Relations, Sheila Cort, Vice President, Corporate Communications, +1-973-630-0680/

Web Site: http://www.jacksonhewitt.com
(JTX)