The rental division remains well-positioned for the previously announced spin-off to existing shareholders, anticipated to occur in the third quarter of this fiscal year.
Gordon Reykdal, Chairman and CEO, Rentcash

Rentcash announced net income for the quarter ended ended December 31, 2007 nearly doubled. Net income was $2.5 million, compared to $1.4 million for the same quarter last year. Rentcash also reported same store sales in the company's rent-to-own rental division averaged $83,800 compared to $76,600 for the same quarter last year.

Store operating income for the payday loan brokerage division was $9.8 million, compared to $8.8 million for the same quarter last year. Brokerage division same store sales were $91,600 compared to $87,300 for the same quarter last year.

Mr. Gordon Reykdal, Chairman and CEO commented, "Revenues are growing, retention payments have been reduced and net income is up. Subsequent to a year long corporate-wide restructuring program, this quarter marks the third consecutive quarter of revenue growth in the brokerage division along with continued year-over-year improvements to the division's same store sales and store operating income. Continued positive trending in store operating performance, increased revenue from non-brokerage related services and lower retention payments indicate that ongoing management initiatives to grow revenues and control expenses are working."

He further commented, "The rental division remains well-positioned for the previously announced spin-off to existing shareholders, anticipated to occur in the third quarter of this fiscal year. Same store sales and store operating income have improved relative to the same period last year; net losses continue to be reduced."

He added, "Management has in recent periods concentrated on the continuous training and development of store associates, with positive overall results. We intend to further strengthen our hands-on strategy. Beginning in the third quarter I will conduct a country-wide tour to meet personally with all store managers to discuss the company's strategic priorities and the effective pursuit of our goals and objectives."

Mr. Reykdal further commented, "The Company was extremely pleased with its continued involvement in the regulatory processes ongoing in both Manitoba and Nova Scotia. Even with the anticipated increased costs associated with these processes, the Company believes regulation will benefit the industry as a whole."

Rental Division Spin-off
Shareholder approval for divestiture of the rental division to existing shareholders was granted at the 2007 Annual General Meeting held on November 28, 2007. The Company continues to move forward with the spin-off, which will be subject to the receipt of applicable regulatory approvals. It is anticipated that all requisite approvals will be obtained and the spin-off completed during the third quarter of fiscal 2008. The Company has also applied to Canada Revenue Agency (CRA) for a tax ruling in respect of the transaction. Management believes that divesting of the rental division will provide better clarity for both business models and have a positive long term impact on shareholder value.