While our potential monthly lease revenue has increased 14.7%, electronics grew only 4.6%. We believe the new models arriving will stimulate demand for the fall and Christmas periods.
David Ingram, President and CEO, easyhome

easyhome (EH.TO), Canada's largest rent to own company, announced a 4.1% same store sales increase for the second quarter ending June 30, 2006.

The company's revenue increased $3.2 million, to $29 million from $25.8 million in the same quarter last year or 12.3%. This was easyhome's 19th consecutive quarter of comparable revenue growth.

The company opened 7 stores during the second quarter. easyhome has opened 22 stores in less than 12 months.

Commenting on the results, David Ingram, President and CEO said, "Although diluted EPS were $0.17 versus a comparable $0.21 in the same period last year, I remain excited about our momentum. Revenues were impacted by a calendar shift that I discussed last quarter and the additional new stores opened during the last 12 months".

Mr. Ingram added, "We are encouraged by a number of positive developments in the quarter. Firstly, we are now starting to experience growth in flat panel TVs, specifically LCD, plasma and DLP. For the last 12 months, while our potential monthly lease revenue has increased 14.7%, electronics grew only 4.6%. We believe the new models arriving will stimulate demand for the fall and Christmas periods. Secondly, revisions to our staff training programs, particularly our intranet based modules for new starters, will enhance quality and speed of development as we prepare for 21 more additional stores for balance of year. Lastly, TV advertising, which has been given a new creative and was absent in the last quarter, will return in October ensuring a comparable marketing campaign."

Mr. Ingram concluded, "The calendar for the third quarter is slightly positive over the same period in 2005, which should benefit revenue by approximately 1-2%. As such, the company remains confident that its previously announced anticipated revenue growth for 2006 will be in the range of 15-20%."

easyhome's Board of Directors also announced the appointment of Nancie Lataille as a director. Ms. Lataille is a Client Partner at Korn/Ferry International, an international executive search firm, and is a member of the firm's Legal Specialist Group. Prior to joining Korn/Ferry International in 2005, Ms. Lataille was employed at ZSA Legal Recruitment, first as a Senior Consultant in the firm's Toronto office and subsequently as the Director of the firm's Montreal office. Ms. Lataille holds a Bachelor of Laws (Common Law) degree from Osgoode Hall Law School and Bachelor of Laws (Civil Law) degree from the Universite de Montreal.

Donald K. Johnson, Chairman of the Board, commented, "While we were disappointed that our Q2 EPS was lower than Q2, 2005, we believe that the factors impacting these results were primarily driven by timing considerations and investments in new stores. We are confident that future results will demonstrate that our Company is on track to continue to deliver on its growth strategy."

"We are also delighted to welcome Nancie Lataille as a new director. Her knowledge and experience will be very helpful in formulating our growth strategy in Quebec, which is the largest, untapped market in Canada for the merchandise leasing business."

easyhome operates 178 locations.