"For the sixth consecutive quarter we have increased our net customer count which was 10% higher at the end of September 30, 2004 compared to a year ago"
David Ingram (who's who), President and CEO

easyhome (EH.TO) Canada's largest rent to own company, today announced record quarterly revenue, operating income, income before income taxes and net income for the third quarter ended September 30, 2004.

easyhome increased revenue for the third quarter to $22 million, the fifth consecutive quarterly record for the Company and an increase of 14% from $19.3 million a year ago. Same store revenue growth (revenue from stores open for the comparable periods) was 8.7% for the quarter, up from 7.8% for the comparable period last year. The record revenues were driven by an increase in the rental revenue portfolio, associated with the increase in the Company's customer-base, which accounted for 76% of the rental revenue growth.

Operating income (earnings before interest and income taxes) for the quarter increased to $2.9 million compared with $2.3 million during the same quarter last year, an increase of 28.9%. Income before taxes increased to $2.9 million from $1.8 million, an increase of 56%.

Net income for the quarter was $4.1 million or $0.61 per diluted share, compared with $1.2 million, $0.23 per diluted share in the third quarter of last year.

Revenue for the nine months ended September 30, 2004 was $64.5 million, up 11.9% from $57.7 million last year. Same store revenue growth was 9.3% for the nine months ended September 30, 2004 compared to 5.3% last year. The Company has achieved 36 consecutive months of year-over-year revenue growth. Operating income for the nine months ended September 30, 2004 was $7.6 million compared with $5.1 million last year, an increase of 50.6%. Income before income taxes increased to $7.4 million from $3.7 million, an increase of 98.7%. Net income increased to $7 million from $2.4 million and diluted earnings per share were $1.05 for the nine months ended September 30, 2004 compared with $0.45 last year. Before the reversal of the future tax asset valuation reserve, net income was $4.7 million and diluted earnings per share were $0.71.

Commenting on the results, David Ingram, President and CEO said, "easyhome's focus on growth, product expansion, targeted marketing, disciplined cost containment and outstanding store execution, continues to drive our performance. For the sixth consecutive quarter we have increased our net customer count which was 10% higher at the end of September 30, 2004 compared to a year ago. Our move from turnaround-phase into one of growth can be evidenced by 12 consecutive quarters of comparable revenue growth and fifteen consecutive quarters of comparable pre-tax income growth before the one-time fixed asset write-off in Q2 of 2003."

In the third quarter, easyhome continued to execute its new store expansion program, opening 6 new stores. A total of 12 new locations have been opened in 2004 and the Company expects to complete the year with a total of 14 new stores.

"Our growth has been disciplined at both the store and corporate level", said Mr. Ingram. "Our carefully planned new store expansion program is generating new stores that are providing revenue and profit contributions ahead of schedule. This, combined with strong same store revenue growth, has led to our strong earnings growth despite the cost associated with new store openings", continued Mr. Ingram.

Mr. Ingram concluded, "From a financial perspective, 2004 is looking very good for easyhome. We are using our growing cash flow to invest in the business and strengthen our balance sheet to allow for sustainable growth opportunities. To this end, we are purchasing inventory in anticipation of continued momentum in same store growth for the fourth quarter."

Donald K. Johnson, Chairman of the Board commented, "The board is very pleased with the company's strong performance, the consistent growth in our customer base and the success achieved with our new store opening program. Significant share value has been created during the past 4 years and we look forward to continuing to grow our existing store base in the years ahead."

The Board of Directors approved a dividend payment of $0.04 per share on January 4th, 2005 to the holders of common shares of record as at the close of business on November 30, 2004.