We have achieved eleven straight quarters of same store revenue growth which has returned the Company to profitability
David A. Kraemer, President and Chief Executive Officer

Bestway, Inc. today released financial results for its third quarter ended April 30, 2005.

For the three months ended April 30, 2005, revenue increased 10.7% to $10,463,431, compared to $9,447,879 for the third quarter of last year. Same store revenues (revenues earned in stores operated for the entirety of both periods) increased 10.2% in the quarter. Net earnings in the third quarter increased to $189,260, or $.11 per share on a diluted basis, compared with $88,010, or $.05 per share on a diluted basis a year ago. The Company's quarterly increase in net earnings resulted primarily from continued revenue increases as a result of its aggressive value-pricing model offering customers the lowest total cost of ownership implemented during the fiscal fourth quarter of 2004.

"We have achieved eleven straight quarters of same store revenue growth which has returned the Company to profitability," commented David A. Kraemer, President and Chief Executive Officer. "We are very pleased with our consistent revenue growth, which we attribute to our team's commitment and execution, as well as our customer's acceptance of our programs. As anticipated, continued revenue increases combined with cost savings in key areas help offset higher depreciation. We believe our value-pricing model will continue to drive increased same store revenues and profitability, which allows us to pursue new store openings, as this is an area of focus going forward."

On May 23, 2005, the Company held its Annual Meeting of Stockholders, at which time the stockholders approved of a reverse stock split of the outstanding shares of the Company's common stock (the "Common Stock") in a ratio of 1-for-100 (the "Reverse Stock Split"), immediately followed by a forward stock split of the outstanding shares of the Common Stock in a ratio of 100-for-1 (the "Forward Stock Split" and together with the Reverse Stock Split, the "Reverse/Forward Stock Splits"). The proposal passed with a majority vote of the holders of the outstanding shares of the Common Stock. The aggregate number of shares of Common Stock represented in person or by proxy at the Annual Meeting represented 94.7% of the 1,791,917 issued and outstanding shares of Common Stock and constituted a quorum for the transaction of business.

The Reverse/Forward Stock Splits became effective upon the filing of a Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation on May 24, 2005 with the Delaware Secretary of State. Each stockholder holding less than 100 shares of Common Stock immediately prior to the effectiveness of the Reverse Stock Split became entitled to receive $13.00 per share of Common Stock for each share of Common Stock held prior to the Reverse Stock Split. The number of shares of Common Stock held by each stockholder holding more than 100 shares of Common Stock prior to the Reverse Stock Split remains unchanged after the consummation of the Reverse/Forward Stock Splits.

As a result of the Reverse/Forward Stock Splits, the Company has fewer than 300 record holders of its Common Stock, permitting the Company to terminate the registration of its Common Stock with the Securities and Exchange Commission under the Securities Act of 1934, as amended. The Company filed for termination of such registration on May 26, 2005.

Bestway, Inc. operates seventy rent-to-own stores located in the southeastern United States.