H&R BLOCK INC — Director's Dealing 2006

Jul 5, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: H&R BLOCK INC (HRB)
CIK: 0000012659
Period of Report: 2006-06-30

Reporting Person: ERNST MARK A (Director, President and CEO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-06-30	Common Stock, without par value	F	8920	$23.9400	Disposed	282042.6550	Direct
2006-06-30	Common Stock, without par value	J	33335	$23.8600	Acquired	315377.6550	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-06-30	Call Option to Purchase	$23.8600	A	376885	Acquired	2016-06-30	Common Stock, without par value (376885)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Call Option to Purchase	$10.0313	2008-09-01	Common Stock, without par value (600000)	600000	Direct
Call Option to Purchase	$12.5000	2009-06-30	Common Stock, without par value (240000)	240000	Direct
Call Option to Purchase	$8.0938	2010-06-30	Common Stock, without par value (300000)	300000	Direct
Call Option to Purchase	$16.1375	2011-06-30	Common Stock, without par value (360000)	360000	Direct
Call Option to Purchase	$23.0750	2012-06-30	Common Stock, without par value (240000)	240000	Direct
Call Option to Purchase	$21.6250	2013-06-30	Common Stock, without par value (220000)	220000	Direct
Call Option to Purchase	$23.8400	2014-06-30	Common Stock, without par value (220000)	220000	Direct
Call Option to Purchase	$29.1750	2015-06-30	Common Stock, without par value (260000)	260000	Direct

Footnotes

F1: Restricted shares of Common Stock granted under the H&R Block, Inc. 2003 Long-Term Executive Compensation Plan. The shares are restricted for three years from the date of grant, at which time they will vest subject to the satisfaction of certain performance criteria.

F2: The option vests in three equal annual installments beginning on the first anniversary of the date of grant.