FOR IMMEDIATE RELEASE



     Jackson Hewitt Inc.  ("Jackson  Hewitt")  today  announced the closing of a
public offering in which  1,322,500  shares of Common Stock were sold by Jackson
Hewitt at a public  offering  price of $21.25 per  share.  The net  proceeds  to
Jackson  Hewitt  in  the  offering  were  approximately  $25.8  million.  In the
offering,  certain  shareholders  of Jackson  Hewitt also sold an  aggregate  of
178,945 shares of Common Stock at a price of $21.25 per share. Janney Montgomery
Scott Inc. and Scott & Stringfellow,  Inc. acted as managing underwriters in the
offering.

         Jackson Hewitt is the second largest tax preparation service in the
United States, with a 41 state network comprised of 1,296 franchised and 76
company-owned offices operating under the trade name "Jackson Hewitt Tax
Service."

     For further information,  contact Keith E. Alessi, Chairman,  President and
Chief Executive Officer of Jackson Hewitt, at (757) 473-3300.