Rent-Way released financial results for its fiscal first quarter, ended December 31, 2002. The company completed the sale of 295 stores on February 10, 2003, and, in accordance with SFAS 144, these stores have been accounted for as discontinued operations. All current and historical results reflected in the following results have been reclassified accordingly.

The company reported consolidated revenues of $146.5 million for its first fiscal quarter, versus $148.8 million in the same quarter of the last fiscal year. The decrease in revenue was mainly due to a 1.5% decline in same-store sales and a reduction in stores year over year.

Consolidated operating income for the quarter was $5.9 million compared to $2.4 million in the same fiscal period last year. First quarter EBITDA increased 21% percent to $12.1 million from $10 million in the year-earlier fiscal quarter. For Rent-Way, EBITDA represents operating income plus depreciation of property and equipment plus amortization of intangibles.

The Company reported a net loss of ($5.4) million, or $(0.21) per share, during the quarter, compared to a net loss of ($64.2) million, or ($2.62) per share, in the year ago quarter. The significant reduction in net loss can be attributed to $41.5 million in charges related to a change in accounting principle SFAS 142 incurred in the previous quarter and improved operational efficiencies and expense control.

William E. Morgenstern
CEO
"Our first quarter operational and financial results demonstrate the progress we are making in returning Rent-Way to profitability. Our team responded to a weak sales environment last summer by launching an aggressive marketing campaign in October intended to increase awareness of the Rent-Way brand in our markets and drive traffic to our stores. The net result of this marketing effort was significant growth in rental agreements throughout the period."

Rent-Way reduced its debt to $285 million as of December 31, 2002 from $339 million on December 31, 2001. This level represents a year-over-year decline of approximately $54 million.

William A. McDonnell
VP, CFO
"We made great strides in improving the overall health of our balance sheet and income statement throughout last year and those improvements continued in the first quarter of fiscal 2003. As reported yesterday, we completed the sale of 295 stores to Rent-A-Center, Inc. It is our intention to refinance the company's existing debt with a credit facility that will provide us with the capital we need to execute our long-range growth plans at a lower over all cost. The completion of this sale is an important first step in that direction."

"We have already begun to rationalize our overhead in the field and in the corporate office and expect to give revenue, operating income and EBITDA guidance by the end of this current quarter."

William E. Morgenstern
CEO
"With a strong first quarter behind us, we are anxious to continue to build on our success. We move forward today with 759 stores, our best of the best, operating in 33 states in markets with plenty of room for growth. We are confident that the strategic initiatives we have implemented to streamline our operations will help to produce improved financial results throughout the year. Lastly, I would like to publicly thank the Rent-Way family for the extraordinary effort, dedication and results they demonstrated this past quarter."