CHICAGO, July 21 /PRNewswire/ -- McGladrey & Pullen LLP today issued formal notice of its intent to terminate its administrative services agreement with H&R Block (NYSE: HRB). While McGladrey & Pullen's audit practice is an independent, partner-owned firm, related professional services have been offered through RSM McGladrey under an agreement with H&R Block since 1999.

McGladrey & Pullen anticipates it will take at least seven months to fully unwind its relationships with RSM McGladrey and H&R Block. The process is expected to be seamless to the firm's clients.

"This arrangement made sense in 1999," said Dave Scudder, managing partner of McGladrey & Pullen LLP. "However, that operational and financial model does not serve us well as we address our future goals of client service, opportunity for our partners, and continued growth."

"We are taking this action because we believe it to be in the best interests of our partners, our employees and our clients. We see great opportunities for success and growth for McGladrey & Pullen as a traditionally structured firm able to provide full service across all industry segments," Scudder noted.

About McGladrey & Pullen LLP

McGladrey & Pullen LLP (a partner-owned CPA firm) delivers audit and attest services. It operates in an alternative practice structure with RSM McGladrey, a leading professional services firm providing accounting, tax and business consulting services to middle-market businesses. Through separate and independent legal entities, they work together to serve clients' business needs. Together the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 employees in nearly 100 offices. McGladrey & Pullen LLP and RSM McGladrey Inc. are member firms of RSM International, an affiliation of independent accounting and consulting firms.

    Contact:
    Sallie Gaines, Hill & Knowlton
    312-255-3094
    sallie.gaines@hillandknowlton.com

SOURCE McGladrey & Pullen LLP