Rent-A-Center, Inc. Reports Second Quarter 2007 Results

Business Wire, July 30, 2007

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any repurchases of common stock the Company may make, the $51.3 million pre-tax litigation expense in the first quarter of 2007 associated with the settlement in the Perez case, or the potential impact of acquisitions or dispositions that may be completed after June 30, 2007.

THIRD QUARTER 2007 GUIDANCE:

Revenues

* The Company expects total revenues to be in the range of $695 million to $710 million.

* Store rental and fee revenues are expected to be between $633 million and $645 million.

* Total store revenues are expected to be in the range of $686 million to $701 million.

* Same store sales are expected to be flat to (1.5%).

* The Company expects to open 8 - 12 new rent-to-own store locations.

* The Company expects to add financial services to 55 - 75 rent-to-own store locations.

Expenses

* The Company expects cost of rental and fees to be between 22.0% and 22.4% of store rental and fee revenue and cost of merchandise sold to be between 74% and 78% of store merchandise sales.

* Store salaries and other expenses are expected to be in the range of 60.7% to 62.2% of total store revenue.

* General and administrative expenses are expected to be between 4.3% and 4.5% of total revenue.

* Net interest expense is expected to be approximately $22 million, depreciation of property assets is expected to be approximately $18 million and amortization of intangibles is expected to be approximately $4 million.

* The effective tax rate is expected to be approximately 36.5% of pre-tax income.

* Diluted earnings per share are estimated to be in the range of $0.30 to $0.36.

* Diluted shares outstanding are estimated to be between 70.6 million and 71.6 million.

FISCAL 2007 GUIDANCE:

Revenues

* The Company expects total revenues to be in the range of $2.905 billion and $2.935 billion.

* Store rental and fee revenues are expected to be between $2.610 billion and $2.640 billion.

* Total store revenues are expected to be in the range of $2.864 billion and $2.894 billion.

* Same store sales are expected to be in the 1.0% to 2.0% range.

* The Company expects to open approximately 30 new rent-to-own store locations.

* The Company expects to add financial services to approximately 200 rent-to-own store locations.

Expenses

* The Company expects cost of rental and fees to be between 21.8% and 22.2% of store rental and fee revenue and cost of merchandise sold to be between 70% and 75% of store merchandise sales.

* Store salaries and other expenses are expected to be in the range of 58.0% to 59.5% of total store revenue.

* General and administrative expenses are expected to be between 4.1% and 4.3% of total revenue.

* Net interest expense is expected to be between $85 million and $89 million, depreciation of property assets is expected to be between $68 million and $73 million and amortization of intangibles is expected to be approximately $16 million.