David Ingram
President and CEO
"The easyhome re-branding was an enormous project - probably the most significant initiative in the Company's history"

easyhome Ltd. (EH) today announced results for the second quarter ended June 30, which included the completion of the transition of 126 of the 130 stores across Canada to the new easyhome brand. The project took the Company from six retail banners to one powerful national brand.

"The easyhome re-branding was an enormous project - probably the most significant initiative in the Company's history," said David Ingram, President and Chief Executive Officer of easyhome Ltd. "As a result of the intensive, focused effort of all staff, we completed the transition on time and on budget. Operating under the easyhome brand will allow us to grow the business and capitalize on the under-penetration of the rent-to-own industry in Canada. easyhome is the only national brand, and is by far the largest rent-to-own chain in the country. We are excited and energized by the opportunities now available to us," said Mr. Ingram.

Revenues for the second quarter were $19.3 million, up 7.3% from $18.0 million a year earlier largely due to an increased customer base. Same store sales growth was 4.0% for the quarter, building on the 6.0% increase for the comparable period last year. After $544,000 in non-recurring charges related to the transition of stores to the easyhome brand and a $143,000 gain on sale of land, operating income (EBIT) for the quarter was $1.2 million compared with $1.5 million during the same quarter last year. Income before taxes was $0.7 million compared with $0.9 million a year ago. Net income for the quarter was $482,000, or $0.09 per diluted share, compared with $666,000, or $0.14 per diluted share, in the fiscal 2002 quarter.

"We are clearly on the right track to improve profitability," said Mr. Ingram. "We have now posted 21 months of consecutive comparable revenue growth, demonstrating the appeal of our concept and our ability to target customers effectively."

Donald Johnson, Chairman of the Board, stated: "On behalf of the directors and the shareholders of easyhome Ltd., I would like to thank the management team for the outstanding job they have done in executing the single brand conversion project on time and on budget. These non-recurring costs are now behind us and we can look forward to continued growth in revenues and profits. The management team and the platform are in place to capitalize on the opportunity in the rental purchase market across Canada."

easyhome Ltd. is Canada's largest rental-purchase company and the fourth largest in North America. The Company previously operated under the name RTO Enterprises Inc.