Our new stores, which we define as stores open less than 15 months, collectively continue to perform ahead of plan and our store opening plan remains on course
William Morgenstern, Rent-Way's Chairman

Rent-Way Inc. (RWY) today reported financial results for the three and six months ended March 31, 2005. The results reported are restated to reflect the Company's review of its lease accounting practices and its method of recognizing rental business revenues as discussed below.

Revenues from the Company's core rental business (which excludes the Company's dPi Teleconnect unit) were $131.6 million versus $128.7 million in the same quarter last year. Same store rental business revenue increased 1.4% versus last year's quarter. Operating income in the quarter was $14.3 million, compared to $15.1 million in the same period last year. Net income was $6.3 million, compared to $6.6 million in the second quarter last year.

"Our management team has done an excellent job executing our growth plans. We nicely exceeded our guidance in revenue and operating income," stated William Morgenstern, Rent-Way's Chairman. "In the quarter we also opened 12 new stores and we expect to open 8 - 10 more by the end of the current quarter. Our new stores, which we define as stores open less than 15 months, collectively continue to perform ahead of plan and our store opening plan remains on course," concluded Mr. Morgenstern.

William McDonnell, Rent-Way's Vice President and CFO, stated, "For the quarter, our core stores revenue and operating income were $130.4 million and $16.7 million, respectively, and our core stores with new stores revenue and operating income were $131.6 million and $14.3 million, respectively. For both core stores and core stores with new stores, we exceeded our guidance for the quarter. As we look forward to the next two quarters, based on current business trends, we reiterate our guidance for revenue and operating income ranges. We anticipate comparable store sales for the June and September quarters to be in the positive 3-4% range," concluded Mr. McDonnell.

The Company ended the quarter with $18.0 million outstanding on its bank revolver, down from $22.0 million at March 31, 2004. The Company reported EBITDA for the quarter of $18.2 million versus $19.2 million in the same quarter last year. EBITDA as defined by the Company is operating income plus depreciation of property and equipment and amortization of goodwill and other intangibles. The Company believes EBITDA provides investors useful information regarding its ability to service its debt and generate cash for other purposes, including for capital expenditures and working capital. The Company reported net cash provided by operations for the quarter of $14.0 million versus $22.0 million in the same quarter last year.