"For the year we increased our active rental agreement count by over 19,000 compared to losing over 26,000 in fiscal 2002."
William E. Morgenstern
Rent-Way CEO

Rent-Way (RWY) today reported financial results for its fourth quarter and fiscal year ended September 30, 2003. As a result of the company's sale of 295 stores earlier this year, all historical results reported in this news release have been reclassified to account for those stores as discontinued operations.

The Company reported consolidated revenues of $118.9 million for its fourth fiscal quarter, versus $117.8 million in the same quarter of last fiscal year. Revenues from the Company's core rental business (which excludes the company's dPi Teleconnect unit) were $111.7 million versus $109.3 million in the same quarter last year. Same store revenues increased 2.5% vs. last year's quarter. Consolidated operating income in the fiscal fourth quarter of 2003 was $9.3 million up from consolidated operating income of $5.8 million in the same period last year. Consolidated net loss for the quarter was $0.6 million versus a consolidated net loss of $7.9 million last year. The net loss available to common stockholders was $1.0 million, or $(0.04) per share compared with a net loss of $7.9 million, or $(0.31) per share, in the 2002 fourth quarter.

The Company reported consolidated revenues of $491.3 million for fiscal 2003, versus $493.4 million in the prior year. Revenues from the Company's core rental business were $456.0 million versus $455.6 million last year. For the full fiscal year, same store revenues increased 0.8%. Consolidated operating income for fiscal year 2003 was $36.5 million versus $23.4 million in the prior year. Consolidated net loss for the year was $29.4 million, versus a consolidated net loss of $76.5 million last year. The net loss for fiscal 2003 was unfavorably impacted by a $14.0 million expense for the settlement of the class action lawsuit and a $15.8 million loss from discontinued operations. The net loss for fiscal 2002 was unfavorably impacted by a $41.5 million goodwill write-off. The net loss available to common stockholders for fiscal 2003 was $29.9 million, or $(1.16) per share compared with a net loss of $76.5 million, or $(3.06) per share, in the prior year.

"The investments we have made and the tireless efforts expended by our team to grow our business are beginning to pay off. Our same store sales increase exceeded our expectations in the last quarter. For the year we increased our active rental agreement count by over 19,000 compared to losing over 26,000 in fiscal 2002. This performance demonstrates the capabilities of a focused, well financed Rentway operations team, " stated William E. Morgenstern, Rent-Way's Chairman and CEO. "Let me assure you that while we acknowledge the results our team achieved in 2003, we understand the final measurement of our team's strength and long term potential is operating the company profitably. By continuing to invest in our people and marketing, it is our intention to deliver on that measurement in 2004."

The company reported EBITDA for the 2003 fourth quarter and fiscal year of $13.8 million and $57.6 million, respectively. Fiscal 2002 fourth quarter and full year EBITDA was $12.2 million and $50.3 million, respectively. EBITDA for 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 (used in) operations for the fourth quarter and fiscal year of $22.8 million and ($23.3 million), respectively. Fiscal 2002 fourth quarter and full year net cash provided by operations was $35.8 million and $48.7 million, respectively. A reconciliation of EBITDA to net cash provided by (used in) operating activities is presented in the chart of supplemental information attached to this release.

The Company expects core rental business revenues (which excludes the company's dPi Teleconnect unit) for fiscal 2004 to be $461 million to $470 million and operating income to be $38.9 million to $43.6 million. The quarterly breakdown is as follows:

Quarter Revenue Operating Income

December 31, 2003 $113-$114 million $6.5-$7.5 million
March 31, 2004 $119-$122 million $11.3-$12.8 million
June 30, 2004 $115-$118 million $10.9-$12.3 million
September 30, 2004 $114-$116 million $10.2-$11.0 million