"...the child tax credit refunds led to increased payouts and lower units on rent in August and September..."
Mark Speese

Rent-A-Center (RCII) reported diluted earnings per share rise of 23.9% for Q3. Same Store Sales Increase a modest 3.4%, and the Board approved a new $100 million share repurchase program.

Net earnings for the quarter were $0.57 per diluted share, when excluding the non-recurring finance charge of approximately $7.5 million associated with finalizing the Company's recapitalization program, an increase of 23.9% from the same quarter of the prior year. Total revenues for the quarter ended September 30, 2003 increased to $549.8 million as compared to $494.6 million for the same quarter of the prior year.

Incremental revenues generated in new and acquired stores, as well as growth in same store revenues primarily drove this 11.2% increase. Same store revenues during the third quarter of 2003 increased 3.4% above the comparable quarter of 2002. The Company's quarterly growth in net earnings resulted primarily from the increase of revenues as outlined above, as well as the benefits associated with the Company's recapitalization program.

Mark E. Speese
Chairman and Chief Executive Officer
"We are pleased to be reporting earnings within our expectations, and are excited about our opportunities in 2004. While the child tax credit refunds led to increased payouts and lower units on rent in August and September, the fourth quarter has begun with positive momentum, which we believe positions us for our continued growth."

During the third quarter of 2003, the Company opened 27 new store locations and acquired 13 stores as well as accounts from nine additional locations. Through the nine month period ending September 30, 2003, the Company opened 65 new stores, acquired a total of 143 others as well as accounts from 199 additional locations while consolidating 15 stores into existing locations. To date through the fourth quarter, the Company has opened three new store locations, acquired two stores and accounts from two additional locations.

Entire earnings release is below
Rent-A-Center, Inc. (the "Company") (Nasdaq/NNM:RCII), the leading rent-to-own operator in the U.S., today announced revenues and net earnings for the quarter ended September 30, 2003.

The Company, the nation's largest rent-to-own operator, reported net earnings for the quarter ended September 30, 2003 of $48.5 million, or $0.57 per diluted share, when excluding the non-recurring finance charge of approximately $7.5 million associated with finalizing the Company's recapitalization program, an increase of 23.9% from the same quarter of the prior year. Total revenues for the quarter ended September 30, 2003 increased to $549.8 million as compared to $494.6 million for the same quarter of the prior year. Incremental revenues generated in new and acquired stores, as well as growth in same store revenues primarily drove this 11.2% increase. Same store revenues during the third quarter of 2003 increased 3.4% above the comparable quarter of 2002. The Company's quarterly growth in net earnings resulted primarily from the increase of revenues as outlined above, as well as the benefits associated with the Company's recapitalization program.

Net earnings for the nine months ended September 30, 2003 were $151.7 million, or $1.72 per diluted share, when excluding the non-recurring finance charge of approximately $35.3 million associated with the recapitalization program, an increase of 19.5% over the net earnings of $127.0 million, or $1.39 per diluted share for the same period in the prior year. Total revenues for the nine months ended September 30, 2003 increased to $1.669 billion from $1.488 billion in 2002, representing an increase of 12.2%. Same store revenues for the nine-month period ending September 30, 2003 increased 3.9%.

"We are pleased to be reporting earnings within our expectations," commented Mark E. Speese, the Company's Chairman and Chief Executive Officer, "and are excited about our opportunities in 2004. While the child tax credit refunds led to increased payouts and lower units on rent in August and September," continued Mr. Speese, "the fourth quarter has begun with positive momentum, which we believe positions us for our continued growth."

During the third quarter of 2003, the Company opened 27 new store locations and acquired 13 stores as well as accounts from nine additional locations. Through the nine month period ending September 30, 2003, the Company opened 65 new stores, acquired a total of 143 others as well as accounts from 199 additional locations while consolidating 15 stores into existing locations. To date through the fourth quarter, the Company has opened three new store locations, acquired two stores and accounts from two additional locations.

The Company's cash flow from operations was $117.2 million for the third quarter of 2003 and $300.6 million for the nine months ended September 30, 2003. The Company also announced that its board of directors has authorized a new $100 million share repurchase program. "We continue to believe that the growth potential of this company and the industry as a whole is significant," Speese commented, "and that our strong recurring cash flow continues to allow us to pursue our growth initiatives, as well as to think and act strategically in managing our capital structure for the benefit of all of our stakeholders."

Rent-A-Center will host a conference call to discuss the third quarter financial results on Tuesday morning, October 28, 2003, at 10:45 a.m. EST. For a live webcast of the call, visit http://investor.rentacenter.com. Certain financial and other statistical information that will be discussed during the conference call will also be provided on the same website.

Rent-A-Center, Inc., headquartered in Plano, Texas, currently operates 2,605 company-owned stores nationwide and in Puerto Rico. The stores generally offer high-quality, durable goods such as home electronics, appliances, computers and furniture and accessories to consumers under flexible rental purchase agreements that generally allow the customer to obtain ownership of the merchandise at the conclusion of an agreed-upon rental period. ColorTyme, Inc., a wholly owned subsidiary of the Company, is a national franchiser of 327 rent-to-own stores, 315 of which operate under the trade name of "ColorTyme," and the remaining 12 of which operate under the "Rent-A-Center" name.

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of share repurchases that may be completed after October 27, 2003.

FOURTH QUARTER 2003 GUIDANCE:

Revenues

-- The Company expects total revenues to be in the range of $555 million to $560 million.

-- Store rental and fee revenues are expected to be between $500 million and $504 million.

-- Total store revenues are expected to be in the range of $540 million to $545 million.

-- Same store sales increases are expected to be in the 1% to 3% range.

-- The Company expects to open 20-30 new store locations.

Expenses

-- The Company expects depreciation of rental merchandise to be between 21.6% and 22.0% of store rental and fee revenue and cost of goods merchandise sales to be between 75% and 80% of store merchandise sales.

-- Store salaries and other expenses are expected to be in the range of 55.0% to 56.0% of total store revenue.

-- General and administrative expenses are expected to be between 3.0% and 3.2% of total revenue.

-- Net interest expense is expected to be approximately $9.0 million and amortization of intangibles is expected to be approximately $3.0 million.

-- The effective tax rate is expected to be approximately 37.25% of pre-tax income.

-- Diluted earnings per share are estimated to be in the range of $0.60 to $0.61.

-- Diluted shares outstanding are estimated to be between 83.6 million and 84.4 million.

FISCAL 2004 GUIDANCE:

Revenues

-- The Company expects total revenues to be in the range of $2.300 billion and $2.330 billion.

-- Store rental and fee revenues are expected to be between $2.065 billion and $2.090 billion.

-- Total store revenues are expected to be in the range of $2.250 billion and $2.278 billion.

-- Same store sales increases are expected to be in the 1% to 3% range.

-- The Company expects to open approximately 80 to 120 new store locations.

Expenses

-- The Company expects depreciation of rental merchandise to be between 21.6% and 22.0% of store rental and fee revenue and cost of goods merchandise sales to be between 75% and 80% of store merchandise sales.

-- Store salaries and other expenses are expected to be in the range of 54.0% to 55.5% of total store revenue.

-- General and administrative expenses are expected to be between 3.0% and 3.2% of total revenue.

-- Net interest expense is expected to be between $34.0 million and $38.0 million and amortization of intangibles is expected to be approximately $6.5 million.

-- The effective tax rate is expected to be between 37.5% and 38.0% of pre-tax income.

-- Diluted earnings per share are estimated to be in the range of $2.62 to $2.70.

-- Diluted shares outstanding are estimated to be between 84.0 million and 86.0 million.