"Stores in the Insta-rent division are expected to continue to show marginal operating losses until such time as the maturity level of the opened stores in the Insta-rent division is reached."
Gordon J. Reykdal, Rentcash President and Chief Executive Officer

Rentcash Inc. announced today that for the year ended June 30, 2004, revenue climbed 116% to $22.3 million from $10.3 million last year, an increase of $11.9 million.

The net loss for the year ended June 30, 2004 was ($219,000) compared with ($354,000) last fiscal year.

For the fourth fiscal quarter ending June 30, 2004, the Company reported net income of $589,000, compared with a net loss of ($623,000) for the same period last year. Revenue increased to $8.4 million for the quarter compared with $3.3 million in revenue for the same fiscal period last year, a 155% increase.

The results for the three months ended June 30, 2004 and for the year ended June 30, 2004 were achieved after the absorption of all of the new store start-up losses associated with the Company's continued aggressive store expansion program. During the quarter, 21 new stores were opened (74 new openings during the year) for a total of 144 stores as at June 30, 2004.

During the quarter, $393,000 in start-up losses were expensed with $1,961,000 being expensed for the year ended June 30, 2004. "Revenue levels, operating income and net income improved significantly over the year and especially in the profitable fourth fiscal quarter, as a result of the maturation of earlier opened stores," said Gordon J. Reykdal, Rentcash Inc. President and Chief Executive Officer. "Same store sales increased 72% in the fourth quarter ended June 30, 2004 in the Cash Store division when compared to the same quarter last year. Operating results of earlier opened stores now exceed the level of losses of more recently opened stores. Stores in the Insta-rent division are expected to continue to show marginal operating losses until such time as the maturity level of the opened stores in the Insta-rent division is reached."

Of the 144 stores as at the year-end, 108 operated under The Cash Store banner and 36 were Insta-rent operations. As of September 15, 2004, the Company has opened 21 additional stores and currently has 165 stores in operation.

The Company has adopted the new CICA standard for stock-based compensation. As permitted by this standard, the Company has applied this change prospectively for new awards granted on or after July 1, 2002. Rentcash has chosen to recognize no compensation expense for the year when stock options are granted to employees and directors under stock option plans. Had compensation cost been determined based on the fair values at the grant dates for those options, the Corporation's net income and earnings per share for Q1, Q2 and Q3 of the fiscal year would have been reduced. Since no stock options were granted or vested in the fourth quarter, the net income and earning per share for Q4 were unaffected. The total compensation costs (net of income taxes) for the year amounted to $193,893. Had these compensation costs been recorded as an expense, Rentcash's net loss for the year would have been ($413,157), with earnings (loss) per share of ($0.03).

During the year, the Company raised $ 2,000,000 in subordinated debt. The subordinated debt bears interest at 12%, and is due in December 2006. Subsequent to the year-end, the Company raised an additional $1.0 million in subordinated debt from the same lender. In addition, on August 25, 2004, Rentcash completed a broker assisted private placement for the issuance of 1.25 million shares at a price of $2.00 each for gross proceeds of $2.5 million. The net proceeds of $2.3 million will be used for continued store expansion and working capital purposes. As part of their compensation, the broker received options to purchase 87,500 shares, exercisable for 12 months, at a price of $2.00 per share. Immediately after, the issued share capital increased to 15,943,612 shares.

Rentcash added more than 250 full-time positions as of the year ended June 30, 2004, currently employing more than 500 people as of June 30, 2004 with its head office located in Edmonton, Alberta.