"Our resolve to invest aggressively in our brand transition to easyhome in the second quarter is paying off, with double-digit growth in revenue and a doubling of net income compared to a year ago."
David Ingram
President & CEO

easyhome Ltd. (TSX:EH), Canada's largest rent to own company, today announced results for the third quarter ended September 30, 2003 which produced the highest quarterly revenue and operating income in the Company's history.

Revenues for the third quarter, a record for the Company, were $19.5 million, up 10% from $17.7 million a year ago. Same store sales growth was 7.8% for the quarter, building on the 5.0% increase for the comparable period last year.

David Ingram, President & CEO said, " I am delighted with the performance our team delivered for the third quarter. Our resolve to invest aggressively in our brand transition to easyhome in the second quarter is paying off, with double-digit growth in revenue and a doubling of net income compared to a year ago. The new presentation of our stores has translated into more customer growth which accounted for 54% of our rental revenue growth in the quarter. Also of note was our cost discipline which insured 58% of the total revenue growth flowed directly to our pre-tax profit."

Mr. Ingram added, "We have now reported 24 consecutive months of year over year revenue growth and 11 consecutive quarters of improved income before income taxes when adjusted for the non-cash fixed asset write-offs in the second quarter related to our single-brand transition. Our merchandising and operational leadership make us well positioned to take advantage of improving demand and the store front under-capacity that exits across Canada." Concluding Mr. Ingram stated. " With the transition work now completed and the store execution showing sustainable improvements we look forward to the next stage of our strategy expansion. To this end, we will open 3 new stores in November and pursue 12 additional locations for 2004."

Donald K. Johnson, Chairman of the Board, commented, "We are very pleased with the excellent operating performance of the Company in the third quarter. The results reflect management's execution of the transition to a single brand and the continued focus on the needs of our customers combined with disciplined cost control. The platform is now in place for execution of the Company's plan to capitalize on the growth potential of the Canadian market."

Stock Issue
The Company also announced that it plans to file a preliminary prospectus in all provinces of Canada for a new issue of its common shares. The common shares will be offered by a syndicate of underwriters led by Raymond James Ltd., and including First Associates Investments Inc. and Jennings Capital Inc.

The entire release is below

easyhome Ltd. (TSX:EH - News) today announced results for the third quarter ended September 30, 2003 which produced the highest quarterly revenue and operating income in the Company's history.

Revenues for the third quarter, a record for the Company, were $19.5 million, up 10% from $17.7 million a year ago. Same store sales growth was 7.8% for the quarter, building on the 5.0% increase for the comparable period last year. Operating income (EBIT) for the quarter was $2.3 million, another record for the Company, compared with $1.4 million during the same quarter last year, an increase of 65%. Income before taxes increased 114% to $1.9 million from $0.9 million. Net income for the quarter was $1.2 million or $0.23 per diluted share, compared with $557,000, or $0.11 per diluted share in the fiscal 2002 quarter.

For the nine month period to September 30, revenues were $58.1 million compared with $53.5 million in 2002, an increase of 8.5%. For the nine months, same store revenues increased 5.3% which is consistent with 2002. Operating income was $5.1 million, up 21.2% from the comparable period last year. Income before taxes was $3.8 million , up from $2.7 million last year. Net income was $2.5 million compared with $1.8 million the previous year, an increase of 39%. Earnings per diluted share were $0.46 compared with $0.36 for the 2002 nine month period, an increase of 28%.

Commenting on these results, David Ingram, President & CEO said, " I am delighted with the performance our team delivered for the third quarter. Our resolve to invest aggressively in our brand transition to easyhome in the second quarter is paying off, with double-digit growth in revenue and a doubling of net income compared to a year ago. The new presentation of our stores has translated into more customer growth which accounted for 54% of our rental revenue growth in the quarter. Also of note was our cost discipline which insured 58% of the total revenue growth flowed directly to our pre-tax profit."

Mr. Ingram added, "We have now reported 24 consecutive months of year over year revenue growth and 11 consecutive quarters of improved income before income taxes when adjusted for the non-cash fixed asset write-offs in the second quarter related to our single-brand transition. Our merchandising and operational leadership make us well positioned to take advantage of improving demand and the store front under-capacity that exits across Canada." Concluding Mr. Ingram stated. " With the transition work now completed and the store execution showing sustainable improvements we look forward to the next stage of our strategy expansion. To this end, we will open 3 new stores in November and pursue 12 additional locations for 2004."

Donald K. Johnson, Chairman of the Board, commented, "We are very pleased with the excellent operating performance of the Company in the third quarter. The results reflect management's execution of the transition to a single brand and the continued focus on the needs of our customers combined with disciplined cost control. The platform is now in place for execution of the Company's plan to capitalize on the growth potential of the Canadian market."

The Company also announced that it plans to file a preliminary prospectus in all provinces of Canada for a new issue of its common shares. The common shares will be offered by a syndicate of underwriters led by Raymond James Ltd., and including First Associates Investments Inc. and Jennings Capital Inc.

easyhome Ltd. is Canada's largest rental-purchase company and the fourth largest in North America, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly rental agreements. The Company previously operated under the name RTO Enterprises Inc. easyhome Ltd. is listed on the TSX under the symbol 'EH'.