Wayland J. Russell
Chairman and CEO
"...He [Hendricks] will be deeply missed in our offices and our stores."

Rainbow Rentals, Inc. (NASDAQ:RBOW) today announced the departure of Larry S. Hendricks as chief operating officer and a director.

Hendricks, one of Rainbow's founders, is leaving to pursue other personal and business interests.

Larry S. Hendricks
Chief operating officer
"This is a good time for a transition at Rainbow. We have successfully implemented major changes in the past year that have begun to generate more favorable results in the past four months, and the company is in good hands. I believe the management team is positioned very well for success, and they have my full support. I'm looking forward to some new business opportunities, as well as spending more time with some of the ministries I've supported and pursuing my life-long dream of coaching."

"Larry has been a force in making Rainbow what it is today," said Wayland J. Russell, chairman and chief executive officer. "His experience and understanding of the rent-to-own customer have played a key role in Rainbow's growth as a premier store operator. He has also been a mentor and friend to his colleagues on our management team and throughout our company. He will be deeply missed in our offices and our stores."

Rainbow has promoted S. Robert Harris to the position of chief operating officer. Harris brings more than 20 years of rent-to-own experience to Rainbow. He began his career as a manager trainee at Remco, a rent-to-own chain, in 1975. He was promoted to positions of increasing responsibility at Remco, including regional manager and vice president of human resources, until he became chief operating officer, a position he held for nearly 10 years, until the company was sold to Thorn Americas in 1995. Harris remained with Thorn for approximately one year. From 1996 through 2002, he served as chairman and chief executive officer of Texas Shamrock Homes, a retailer of manufactured housing, which he sold prior to joining Rainbow in January 2003 as regional supervisor.

"Robert has already made significant contributions to Rainbow, and we're confident that his experience and talent will drive us to greater success," Russell said. "His understanding of our industry and history of running $1 million stores fits well with Rainbow and will help us build on our reputation as a premier operator of high-volume stores."