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Record Q2 and Six-Month Results Announced by Rent-A-Wreck of America

15 November 1999

Record Second Quarter and Six-Month Results Announced by Rent-A-Wreck of America

    OWINGS MILLS, Md.--Nov. 11, 1999--Rent-A-Wreck of America, Inc. announced results for the second quarter and six-month period ended September 30, 1999.
    For the three-month period, net income was $432,467, an increase of approximately 29% over net income of $334,848 in the same period last year, on a 12% increase in net revenues. Net income applicable to common shares increased from $.08 to $.11 per common share (basic), while diluted earnings per share increased from $.06 to $.07.
    For the six months ended September 30, 1999, net income increased 33% to $665,498 on a 13% increase in net revenues. Basic earnings per share were $.16 versus $.11 in the prior year, and diluted earnings per share were $.11 versus $.09 in the same period last year.

                                    Three Months         Six Months
                                       Ended               Ended
                                    September 30,       September 30,
                                   1998      1999      1998      1999
                                  ----------------   ----------------
                                   (in thousands except per share 
                                        and number of franchises)
                                             (Unaudited)

Franchisees' Results (Unaudited)

Franchisees' Revenue (1)          $13,191  $15,498    $22,901  $26,819
Number of Franchises                  588      671        588      671

Results of Operations

Total Revenue                     $ 1,666  $ 1,866    $ 2,952  $ 3,345
Costs and expenses and Other        1,178    1,224      2,254    2,382
Income before income
  taxes                               504      663        730    1,002
Net income                            335      432        502      665
Earnings per share

 Basic (2)                        $   .08  $   .11    $   .11  $   .16

Weighted average common
  shares                            4,098    3,944      4,130    3,942

 Diluted (2)                      $   .06  $   .07    $   .09  $   .11

Weighted average common             5,467    6,106      5,535    6,000
 shares

(1)  The franchisees' revenue data have been derived from unaudited
reports provided by franchisees submitted when paying license fees and
advertising fees to the Company.

(2)  Basic earnings per share are after deducting a provision for
preferred dividends of $27,320 and $54,640, for the three and
six-month periods ended September 30, 1998. For the three and
six-month periods ended September 30, 1999, basic earnings per share
are after deducting a provision for preferred dividends of $22,400 and
$45,000. Diluted earnings per share assumes a conversion of cumulative
preferred stock into common shares and, accordingly, no deduction from
earnings is made for preferred dividends.