"The combination of a fresh retail look with highly targeted direct mail has attracted record growth in the number of new customers, which accounted for 63% of the rental revenue increase in the quarter"
David Ingram, easyhome CEO

 "Of the six publicly traded companies in the North American merchandise rental industry, easyhome continues to be one of the strongest performers as measured by same store revenue growth..."
Donald K. Johnson, easyhome Chairman of the Board

easyhome Ltd. , (EH.TO) Canada's largest rent to own company,  today announced results for the second quarter ended June 30, 2004 which produced the highest quarterly revenue in the Company's history.

Revenue for the second quarter was $21.6 million, up 13.1% from $19.1 million a year ago. Same store revenue growth was 10.4% for the quarter, up from 4% for the comparable period last year. Operating income (EBIT) for the quarter doubled to $2.2 million from $1.1 million a year ago. Income before taxes increased to $2.1 million from $665,000. Net income for the quarter was $1.4 million or $0.21 per diluted share, compared with $434,000, or $0.07 per diluted share in the second quarter of last year.

Revenue for the six months ended June 30, 2004 was $42.5 million, up 10.9% from $38.3 million last year. Same store revenue growth was 9.6% for the six months ended June 30, 2004 compared to 4.2% last year. Operating income (EBIT) for the six months ended June 30, 2004 was $4.7 million compared with $2.8 million last year, an increase of 68.3%. Income before income taxes increased to $4.5 million from $1.9 million and net income increased to $2.9 million from $1.2 million. Diluted earnings per share were $0.44 for the six months ended June 30, 2004 compared with $0.22 last year, an increase of 100.0%.

Commenting on these results, David Ingram, President & CEO said, "It has been one year since the re-branding initiative was completed and we are extremely pleased to report successful results on all of the key measures which defined the strategic benefits of this investment. In particular, our same store revenues continue to climb from an average of 4.9% in 2003 to a record high of 10.4% in the second quarter. The combination of a fresh retail look with highly targeted direct mail has attracted record growth in the number of new customers, which accounted for 63% of the rental revenue increase in the quarter. The strong growth was managed with great discipline in our stores with our associates continuing to execute control over costs and remaining consistent with the first quarter's record low levels of charge-offs. This allowed for our strong earnings growth despite the cost associated with new store openings."

Mr. Ingram concluded, "Consumer demand for our rental merchandise offer continues to grow across Canada. Our new store expansion program is performing ahead of expectations with the 3 new stores opened last November achieving profitability in April of this year. The 5 additional stores opened in the first half of this year are on track for an early contribution to profits. We expect to complete 2004 with a total of 13-15 new stores."

Donald K. Johnson, Chairman of the Board, commented, "The Board is delighted with the performance of the Company under the easyhome brand. On behalf of the Shareholders, I congratulate our management team in particular and all employees in general."

Mr. Johnson added, "Of the six publicly traded companies in the North American merchandise rental industry, easyhome continues to be one of the strongest performers as measured by same store revenue growth as well as operating and pre-tax profit margins. Furthermore, we have a strong balance sheet and an excellent platform in place to open new stores and capitalize on the growth opportunity in the under-served Canadian merchandise rental market."

The Board of Directors approved a dividend payment of $0.04 per share on October 1, 2004 to the holders of common shares of record as at the close of business on August 31, 2004.

easyhome Ltd. is Canada's largest merchandise rental company and the fourth largest in North America. The Company previously operated under the name RTO Enterprises.