We exceeded our goal of 300 stores from coast to coast a year in advance and acquired the Instaloans and Premiere Financial chains in the last quarter
Gordon J. Reykdal, Chairman, and CEO, Rentcash

Rentcash Inc (TSXV: RCS) today announced that for the year ended June 30, 2005, earnings rose to $7.3 million compared to a net loss of $219,264 in the previous year. Diluted earnings per share for the year were $0.41 ($0.43 basic) compared to a loss of $0.01 per share ($0.01 basic) for the prior year.

Revenue for fiscal 2005 climbed to $77.3 million, an increase of 247% over the prior year with strong growth in both the brokerage and rental- purchase divisions. The brokerage division generated revenue of $63.9 million in fiscal 2005 compared to $16.5 million in the prior year. Revenue from the rental-purchase division was $13.4 million compared to $5.7 million for the year ended June 30, 2004.

As of June 30, 2005, Rentcash operated 361 stores in nine provinces and two territories. The brokerage division had 277 stores in operation, an increase of 169 stores (102 stores through acquisition) over one year ago. The rental-purchase division opened 48 outlets in fiscal 2005 for a total of 84 at June 30, 2005.

"With such strong year-over-year growth, we continue to surpass our ambitious growth plans," said Gordon J. Reykdal, Chairman, and Chief Executive Officer. "We exceeded our goal of 300 stores from coast to coast a year in advance and acquired the Instaloans and Premiere Financial chains in the last quarter. Since year end, we have repaid in full $3 million of subordinated debt, acquired Payday Financial and introduced new mortgage products in The Cash Store(TM) division."

"We are very pleased that the integration of 99 Instaloans stores into our brokerage operations has occurred so smoothly," added Mr. Reykdal. "Instaloans has now converted to brokering loans in the same way as The Cash Store, and many of its locations are starting to reflect The Cash Store style. The financial performance of the Instaloans stores since acquisition has exceeded our expectations, reflecting the benefits of our operating philosophy."

For the fourth quarter ended June 30, 2005, Rentcash generated revenue of $32.3 million compared with $8.4 million for the same period last year, an increase of 286%. Net income for the fourth quarter was $243,532 compared with $588,185 for the same period last year and $3.3 million in the third quarter ended March 31, 2005. Fourth quarter earnings were impacted by an administrative allowance provision of $8.9 million, which included a non-cash accrual of $7.2 million.

In addition to acquiring 99 Instaloans stores on April 22, 2005, Rentcash opened 32 new stores in the fourth quarter of 2005, compared to 21 new stores in the fourth quarter last year.

Overall, same store sales year over year increased by 104% to $115,000 per store for the current quarter, up from $56,000 per store for the quarter ended June 30, 2005. The same store average revenues for the brokerage division increased 118% to $126,000 per store for the current quarter, up from $58,000 per store for the quarter ended June 30, 2004. As for the rental division there was a 58% increase in same store average revenues to $83,000 per store for the current quarter, up from $53,000 per store for the quarter ended June 30, 2004.

Rentcash recently introduced Insta-Mortgage, home-equity based loans of $1,000 to $2,000, which can often be brokered in one day through the Company's Cash Store and Instaloans outlets. Offered through a new subsidiary operating as The Mortgage Company, the service is available in Alberta and Manitoba, with a national rollout expected later in the year.

"Insta-Mortgage is a major step forward in the development of The Cash Store and Instaloans' as a neighbourhood financial supermarket offering a wide range of financial services." said Rentcash Chairman, and CEO Gordon J. Reykdal. "Our expanding store network is reaching a wider group of consumers across Canada and the new mortgage products further enhance our ability to meet consumer needs."

Rentcash now operates under three store banners: The Cash Store, Instaloans and Insta-rent. The Company employs more than 1300 associates.

Rentcash also announced today that its Board of Directors is investigating the viability and method of converting the Company into an income trust. A detailed review of the merits of converting to an income trust structure will be undertaken together with legal, financial and tax advisors. "We are of the preliminary view that a conversion of Rentcash to an income trust may enhance investor value allowing for the distribution to our securityholders of a significant portion of the cash flow generated by the Company business on a tax effective basis while maintaining our platform for growth" stated Gordon J. Reykdal.