Rent-Way, today reported that its previously announced sale of $205 million of senior secured notes has closed. In connection with the note sale, the Company also closed a new $60 million revolving line of credit and sold $15 million in newly authorized 8% convertible preferred stock through a private placement.

Rent-Way used the net proceeds of the offering, together with borrowings under the new revolving credit facility and the net proceeds of the sale of the convertible preferred stock, to repay all amounts outstanding under its current bank credit facility. Following the refinancing, Rent-Way has approximately $20 million available under its new revolving credit facility. As a result of the completion of the refinancing, the Company expects Standard & Poor's Ratings Services to raise its corporate credit rating from 'CCC' to 'B+'.

Bill Morgenstern
Chairman and CEO of Rent-Way
"We are pleased to have closed this refinancing and with the confidence that high quality institutions have demonstrated in Rent-Way's future. Store traffic continues to be strong as a result of a highly successful sales and marketing campaign that began late last year and our brand has built momentum. Over the next 18 months, our focus will be on growing store revenues and profits. We also expect to begin opening new stores in profitable markets in fiscal 2004."

Mr. Morgenstern concluded, "The rent-to-own market has grown 6.2% annually since 1995. Rent-Way is now operationally and financially prepared to capitalize on our own significant position in this vibrant and expanding market. Our commitment is to a business strategy centered on creating a store environment where our customers, employees and stakeholders feel `Welcome, Wanted and Important.' This commitment supports our vision: to be the nation's rent-to-own company of choice."

The Company is planning to hold a public conference call later in this quarter or early next quarter to further discuss this refinancing as well as to provide guidance on its business plans for the next 18 months.