reminder: Rent Way will webcast a conference call today April 29th, 2004 at 4:30 pm EST. A link to the live webcast will be available from My RTO Portfolio.

"Since our June 2003 refinancing, we have had three consecutive full quarters of period over period increases in revenues and operating income and positive store comps"
William Morgenstern, Rent-Way's Chairman and CEO

Rent-Way (RWY) today reported financial results for its fiscal 2004 second quarter ended March 31, 2004.

The Company reported consolidated revenues of $135.0 million versus $130.2 million in the same quarter last year. Revenues from the company's core rental business (which excludes the company's dPi Teleconnect unit) were $128.2 million versus $120.3 million in the same quarter last year. Same store revenues increased 6.9% versus last year's quarter. Consolidated operating income in the quarter was $15.2 million, up from $7.5 million in the same period last year. Consolidated net income allocable to common shareholders was $6.3 million, or $0.22 per diluted share versus a net loss of $27.9 million last year, or $(1.09) per diluted share. The comparability of consolidated net income allocable to common shareholders in the 2004 fiscal second quarter with the same quarter in fiscal 2003 is affected by several significant charges in the 2003 quarter totaling approximately $29.6 million, including a $14.0 million charge on settlement of our prior securities class action litigation and a $13.4 million loss from discontinued operations.

"I am very pleased with our performance in the quarter," stated William Morgenstern, Rent-Way's Chairman and CEO. "Since our June 2003 refinancing, we have had three consecutive full quarters of period over period increases in revenues and operating income and positive store comps. We will continue to make investments in marketing, in our employees and in our stores in order to ensure strong top-line performance during the remainder of fiscal 2004 and beyond."

William McDonnell, Vice President and Chief Financial Officer stated, "For the quarter, we again exceeded our guidance on revenue and operating income. Shareholders should note, however, that due to the seasonality of our rent-to-own business our fiscal second quarter is traditionally the quarter in which we report our strongest numbers. We expect performance in accordance with our prior guidance in our fiscal 2004 third and fourth quarters."