RSM McGladrey to launch UK based international tax firm

RSM McGladrey has entered into a strategic agreement with Munich-based RSM Hemmelrath Gruppe, one of Germany’s most respected legal and tax firms to create RSM McGladrey UK Ltd., an international tax consulting firm.

RSM McGladrey UK Ltd. provides the foundation for RSM McGladrey’s global international tax and cross-border transaction support business in eight countries. RSM McGladrey and RSM International, a network of independent member firms around the globe, have been developing an integrated strategy to be the leading provider of the best services for clients around the world. The agreement builds upon and complements RSM International’s world-class foundation of providing financial services to clients across the globe.

The collaborative agreement with RSM Hemmelrath Gruppe makes RSM McGladrey among the first tax, accounting and business services firms focused on the middle market to manage offices outside of the United States.

“We are dedicated to offering our clients premier international tax and cross-border transaction support services worldwide,” commented Steve Tait, president of RSM McGladrey. “Our aim is to have high caliber tax, law and financial specialists in major countries outside of the United States to offer our clients a multidisciplinary service approach. Establishing RSM McGladrey UK Ltd. marks the first step toward that goal.”

RSM McGladrey UK Ltd. will employ the tax, law and financial professionals of RSM Hemmelrath Gruppe currently operating in eight countries, including Germany, the United Kingdom, Russia, Mainland China, Poland, Hungary, Romania and the Czech Republic.

Alexander Hemmelrath, CEO of RSM Hemmelrath Gruppe, will continue to lead RSM Hemmelrath Gruppe and will be appointed the executive managing director of RSM McGladrey UK Ltd. Clients will continue to be serviced on a local level.

“The need for international tax services is exploding,” Hemmelrath said. “This agreement demonstrates RSM McGladrey’s focus on client needs and their actions to place assets in countries where clients are located and doing business. RSM McGladrey UK Ltd. will provide the local expertise and capabilities to service clients seamlessly around the world.”

The transaction is expected to be completed in July 2006.

About RSM McGladrey

RSM McGladrey Inc. is a leading provider of tax, accounting and business consulting services. The RSM McGladrey group of companies offers accounting, tax services, business consulting, retirement resources, employer services, corporate finance, wealth management and financial process outsourcing. RSM McGladrey serves clients’ global business needs through its membership in RSM International (an affiliation of separate and independent legal entities) and RSM McGladrey UK Ltd. RSM McGladrey Business Services is a wholly owned indirect subsidiary of H&R Block (NYSE: HRB).

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 can 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.

About RSM Hemmelrath Gruppe

RSM Hemmelrath Gruppe is one of the leading firms in Europe offering client-oriented and integrated tax, legal and financial advisory services. It offers a complete range of advisory services with a strong focus on tax and transaction-related advice. Legal and tax services presently are offered by Hemmelrath & Partner Partnerschaftsgesellschaft in Germany, China and various local professional entities throughout Europe. Audit, financial advisory and management consulting services are rendered by RSM Hemmelrath GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft.