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Rent-A-Wreck Announces Fourth Consecutive Record Year

30 June 1998

Rent-A-Wreck Announces Fourth Consecutive Record Year ... Fiscal 98 Operating Income Up 30%

    OWINGS MILLS, Md.--June 29, 1998--Rent-A-Wreck of America Inc. (NASDAQ SMALLCAP:RAWA) announced record earnings for its fourth quarter and fiscal year ended March 31, 1998.
    The company reported operating income for the year up by 30% to $694,085 over operating income of $533,363 in the same period a year ago.
    Net income was adversely impacted by an increase in income tax expense of 234% due to the company's prior use of its remaining net operating loss carryforward in the prior fiscal year, resulting in a modest increase in net income from $537,000 to $548,000.
    According to Rent-A-Wreck's president, Kenneth L. Blum Jr., "Rent-A-Wreck continues to be one of the largest domestic franchise systems in the Automotive Rental Industry. Our name and size continue to provide us with new opportunities.
    "This year was a banner year for growth in the system, not only in number of new franchise locations, but number of vehicles in the system as well. Our strong balance sheet has allowed us to expand the captive insurance program. We are excited about our prospects for continued growth in the coming year."

CONDENSED CONSOLIDATED FINANCIAL STATEMENT ATTACHED