Rent-A-Center, Inc. Reports First Quarter 2005 Results; Diluted Earnings per Share of $0.56, Excluding Litigation Credit; Operating Cash Flow Exceeds $87 Million for the Quarter

Business Wire, April 25, 2005

Rent-A-Center, Inc. and Subsidiaries

                   STATEMENT OF EARNINGS HIGHLIGHTS


(In Thousands of Dollars, except per share data)

                                     Three Months Ended March 31,
                                 -------------------------------------
                                    2005         2005          2004
                                 ------------ -----------    ---------
                                    Before       After
                                  Litigation  Litigation
                                  Reversion    Reversion
                                 ------------ -----------    ---------

Total Revenue                       $601,855    $601,855     $585,380
Operating Profit                      77,992      85,992       92,659
Net Earnings                          42,685      47,669 (1)   52,209
Diluted Earnings per Common Share      $0.56       $0.63 (1)    $0.63
EBITDA                               $93,552     $93,552     $106,396

Reconciliation to EBITDA:

Reported earnings before income
 taxes                                68,526      76,526       83,803
Add back:
    Litigation Reversion                  --      (8,000)          --
    Interest expense, net              9,466       9,466        8,856
    Depreciation of property
     assets                           13,263      13,263       11,249
    Amortization of intangibles        2,297       2,297        2,488
                                 ------------ -----------    ---------

EBITDA                               $93,552     $93,552     $106,396

(1) Including the effects of an $8.0 million pre-tax credit associated
    with the litigation reversion. This pre-tax credit increased
    diluted earnings per share in the first quarter of 2005 by $0.07,
    from $0.56 per diluted earnings per share to the reported diluted
    earnings per share of $0.63.


Selected Balance Sheet Data:                     March 31,  March 31,
 (in Thousands of Dollars)                          2005       2004
                                                 ---------- ----------

   Cash and cash equivalents                       $75,246   $273,391
   Prepaid expenses and other assets                37,138     42,444
   Rental merchandise, net
             On rent                               610,103    557,484
             Held for rent                         181,652    139,201
   Total Assets                                  1,987,301  1,954,674

   Senior debt                                     347,375    397,000
   Subordinated notes payable                      300,000    300,000
   Total Liabilities                             1,140,472  1,110,307
   Stockholders' Equity                            846,829    844,367


                 Rent-A-Center, Inc. and Subsidiaries

                  CONSOLIDATED STATEMENTS OF EARNINGS

(In Thousands of Dollars, except per share data)   Three Months Ended
                                                        March 31,
                                                   -------------------
                                                     2005      2004
                                                   --------- ---------
                                                        Unaudited

Store Revenue
   Rentals and Fees                                $518,622  $504,290
   Merchandise Sales                                 62,770    59,423
   Installment Sales                                  6,584     6,698
   Other                                              1,078     1,080
                                                   --------- ---------
                                                    589,054   571,491

Franchise Revenue
   Franchise Merchandise Sales                       11,672    12,464
   Royalty Income and Fees                            1,129     1,425
                                                   --------- ---------
       Total Revenue                                601,855   585,380

Operating Expenses
   Direct Store Expenses
       Cost of Rental and Fees                      112,468   108,543
       Cost of Merchandise Sold                      42,067    39,383
       Cost of Installment Sales                      2,863     3,145
       Salaries and Other Expenses                  334,041   309,084
   Franchise Operation Expenses
       Cost of Franchise Merchandise Sales           10,912    11,892
                                                   --------- ---------
                                                    502,351   472,047


   General and Administrative Expenses               19,215    18,186
   Amortization of Intangibles                        2,297     2,488
   Litigation Reversion                              (8,000)       --
                                                   --------- ---------

       Total Operating Expenses                     515,863   492,721
                                                   --------- ---------

       Operating Profit                              85,992    92,659

Interest Income                                      (1,402)   (1,503)
Interest Expense                                     10,868    10,359
                                                   --------- ---------

       Earnings before Income Taxes                  76,526    83,803

Income Tax Expense                                   28,857    31,594
                                                   --------- ---------

       NET EARNINGS                                  47,669    52,209

Preferred Dividends                                      --        --
                                                   --------- ---------

Net earnings allocable to common stockholders       $47,669   $52,209
                                                   ========= =========

BASIC WEIGHTED AVERAGE SHARES                        74,558    80,285
                                                   ========= =========

BASIC EARNINGS PER COMMON SHARE                       $0.64     $0.65
                                                   ========= =========

DILUTED WEIGHTED AVERAGE SHARES                      76,072    82,887
                                                   ========= =========

DILUTED EARNINGS PER COMMON SHARE                     $0.63     $0.63
                                                   ========= =========