I am also pleased with our operational discipline which showed continued improvements to our collection practices with reduced delinquencies and a lower charge off expense.
David Ingram, President and CEO

easyhome (EH.TO), Canada's largest rent to own company, today announced its results for the first quarter ending March 31st, 2006.

- Revenue increased $4.5 million, from $24 million for the same quarter last year to $28.5 million, or 18.9%.

- Same store revenue growth of 8.7% building on 7.3% for 2005.

- Potential monthly lease revenue increased to $8,338,000 from $7,177,000 in Q1 2005.

- 54 consecutive months of comparable growth.

- $0.3 million drag from stores open less than 12 months (2005 - $0.1 million).

- Charge offs improved to 2.1% compared to 2.5% for the same period last year.

- Operating income improved $1.1 million to $3.9 million or 40% compared to last year.

- Net income for the quarter was $2.3 million compared to $1.7 million last year.

- Diluted earnings per share of $0.23 compared to $0.16 last year.

- Opened 2 stores, 1 kiosk, and the first financial services kiosk.

During the first quarter of 2006, the Company opened its first sub-prime financial services centre in one of its Edmonton merchandise leasing locations. The centre offers short-term personal loans in the $1,000 to $5,000 range. Loans are advanced to customers who don't qualify for credit from traditional sources. The Company will test this concept throughout 2006 before a decision is made to roll-out the proposition to other merchandise leasing locations within the Company's chain. The test phase will in all likelihood involve the opening of another two centers.

Commenting on the results, David Ingram, President and CEO said, "I am delighted to report a record quarter for both revenue and net income. Total revenue growth of 18.9%, and same store revenue growth of 8.7% was achieved, despite a first quarter in 2005, which had improvements of 14.9% and 7.3% respectively for the same period. I am also pleased with our operational discipline which showed continued improvements to our collection practices with reduced delinquencies and a lower charge off expense. These improvements have contributed to an operating margin of 13.5% which demonstrates the leverage from continued same store revenue growth."

Mr. Ingram continued, "3 new locations were added in the first quarter, and we are focused on completing 8 new stores in the second quarter, and achieving our 2006 target of 30 new stores, 11 relocations, 1 additional Leon's kiosk, and 3 financial services kiosks. Our outlook, therefore, remains consistent with our last quarterly report, total revenue growth of 15-20%, and same store revenue growth of 5-7%".

Donald K. Johnson, Chairman of the Board, commented, "Our management team continued to enhance shareholder value in the first quarter of 2006. When compared to its North American peer group, easyhome delivered both the highest operating margins and the largest profit growth at 13.5% and 39% respectively. I would also like to take this opportunity to welcome Chris Fregren who recently joined us as our new Chief Financial Officer. I believe his skills and extensive experience are an excellent addition to our strong management team."

The Board of Directors declared a dividend of $0.06 per common share, payable on July 4, 2006 to holders of common shares as at the close of business on June 16, 2006.

easyhome Ltd. operates 172 locations.