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Aaron Rents Expects 20% Revenue Growth But Flat Earnings for Third Quarter; Share Buyback to Increase


``We anticipate revenues for the current quarter will be up over 20% from the third quarter last year,'' said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer. ``Our rental purchase division continues to grow and perform well, however, earnings from our convention furnishings and rent-to-rent divisions will be below plan,'' Mr. Loudermilk said.

``We had anticipated that the acquisition of the Blackhawk Convention Services business in December of 1997 would create synergies with our existing convention services division and would add to the profitability of the Company beginning with the current quarter, but this has not developed. In addition, our rent-to-rent division, historically a slow-growth and mature business, has achieved better than expected increases in revenues in recent quarters. These incremental revenues during the third quarter are being realized through extensive advertising, promotion, and customer service costs, which will result in profits for the division being down for the quarter compared to the quarter a year ago,'' Mr. Loudermilk explained.

``The challenges in these two divisions are currently being addressed and we expect to improve the earnings comparisons in subsequent quarters. We are very optimistic about the long-term outlook for Aaron Rents,'' Mr. Loudermilk added.

Mr. Loudermilk also stated that the Company would continue with its existing share repurchase program and would seek authorization from the Board of Directors to acquire an additional 1,000,000 common shares in the marketplace.

Aaron Rents, Inc., based in Atlanta, currently has a total of 426 stores in 32 states for the rental and sale of residential and office furniture and accessories, consumer electronics, household appliances and convention furnishings. The Company manufactures furniture at five plants in Georgia and Florida.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The Company notes that the forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Prospectus dated April 28, 1998, filed with the Securities and Exchange Commission, under the caption ``Risk Factors,'' which discussion is incorporated herein by this reference.

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