Rent-Way Completes Acquisition; Chain Now Operates 104 Stores

Business Wire, July 29, 1996

ERIE, Pa.--(BUSINESS WIRE)--July 29, 1996--Rent-Way, Inc. (NASDAQ-RWAY) today announced it has completed the acquisition of Diamond Leasing Corp., an 11 store privately owned rental-purchase chain with stores in Delaware, Maryland, and Pennsylvania. Annual revenues of Diamond are approximately $7 million.

"The acquisition of Diamond represents several milestones in the Company's growth," stated William E. Morgenstern, President of Rent-Way, Inc. "Rent-Way is now over the 100 store hurdle. It is our ability to acquire and integrate new stores quickly and profitably that has enabled us to grow from 19 stores in 1993 to 104 stores today." In May and June, Rent-Way completed acquisitions of 16 stores in New York, Pennsylvania and Virginia.

This is also a strategic move for Rent-Way; representing another milestone with the Company's expansion into the new markets of Delaware and Maryland. "We now have stores in 11 states covering three regions," explained Mr. Morgenstern. "The new stores have a strong existing client base and good ties to their surrounding communities. We see an immediate synergy in our operating styles and look forward to serving these new markets."

"With the completion of this acquisition, our revenues, on a monthly basis, are $5 million, and on a going-forward basis, we are well on target to achieve a milestone of exceeding $60 million in annual revenues." For the nine months ended June 30, 1996, Rent-Way reported revenues of $36,736,519, operating income of $4,723,204 and net income of $1,931,672.

"Rent-Way will continue to actively seek mergers and acquisitions where financial and geographic profiles are consistent with the Company's growth objectives," stated Mr. Morgenstern.

Rent-Way operates a chain of 104 rental-purchase stores located in Delaware, Florida, Illinois, Indiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Virginia that rent brand name durable household products such as home entertainment equipment, furniture, and major appliances, and jewelry on a week-to-week or month-to-month basis under full service rental agreements.

CONTACT: William E. Morgenstern

Rent-Way, Inc., 800/736-8929

or

Vicki Miles Weiner

VMW, Inc., 212/605-3140