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Rent-A-Wreck Continues Record Breaking Trend

17 August 1999

Rent-A-Wreck Continues Record Breaking Trend

    OWINGS MILLS, Md.--Aug. 17, 1999--Rent-A-Wreck of America, Inc., announced record earnings for its first fiscal quarter ended June 30, 1999.
    Operating income was up 53%, pre-tax income grew 50%, net income increased 40% and net income applicable to common shares advanced 51% over the same period in 1998 on a 15% increase in net revenues comprised primarily of a 16% increase in initial license fees and a 17% increase in continuing license fees.
    Weighted average common shares outstanding declined 5% to 3,940,000, but fully diluted shares increased by 5% to 5,893,000 due to an increase in the stock's average price. Basic earnings per common share increased to $.05 from $.03, while fully diluted earnings per common share grew to $.04 from $.03.

    CONDENSED CONSOLIDATED FINANCIAL STATEMENT ENCLOSED

                                     Three Months ended June 30,  
                                        1998             1999         
                                        ----             ----
                                   (in thousands except per share
                                   amounts and number of franchises)
                                            (Unaudited)
Franchisees' Results

Franchisees' revenue (1)               $ 9,710         $11,322
Number of franchised locations             568             655

Results of Operations

Total revenue                          $ 1,286         $ 1,479
Total expense                            1,076           1,158
Income before income taxes                 226             339
Net income                                 167             233
Earnings per common share

 Basic                                 $   .03         $   .05
 Weighted average common shares          4,163           3,940

 Diluted                               $   .03         $   .04
 Weighted average common shares 
  plus convertible preferred 
  stock, and options and warrants        5,632           5,893


(1) The franchisees' revenue data have been derived from unaudited
reports provided by franchisees in paying license fees.