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AARON RENTS, INC. ANNOUNCES PROPOSED NEW CLASS OF COMMON STOCK AND DIVIDEND INCREASE

 AARON RENTS, INC. ANNOUNCES PROPOSED
 NEW CLASS OF COMMON STOCK AND DIVIDEND INCREASE
 ATLANTA, Oct. 7 /PRNewswire/ -- Aaron Rents, Inc. (NASDAQ: ARON), the nation's largest furniture rental and sales company, today announced that its board of directors has approved and recommended to its shareholders an amendment to its Articles of Incorporation to (1) reclassify each outstanding share of the existing common stock as one share of voting Class A Common Stock and one share of non-voting Class B Common Stock and establish the rights of each class of such stock, and (2) increase the number of authorized shares of common stock from 10 million to 50 million, consisting of 25 million shares of Class A Common Stock and 25 million shares of Class B Common Stock.
 The reclassification will be submitted for the approval of shareholders at the company's annual meeting of shareholders to be held on Oct. 20. Immediately after this reclassification all shareholders will have substantially the same relative voting and equity ownership positions as they had just prior to the reclassification. The non- voting Class B Common Stock will also have certain protective features designed to minimize any economic reasons for the two classes of Common Stock to trade at disparate market prices.
 The board of directors also announced its intention to declare a semi-annual cash dividend of $.03 per share on the Class A Common Stock and $.04 per share on the Class B Common Stock with respect to the first six months of the company's fiscal year ending March 31, 1993. This will have the effect of increasing the dividend from the $.05 per share of existing common stock paid by the company semi-annually during its past five fiscal years to an aggregate of $.07 per share on the two classes of stock, a 40 percent increase.
 "We view these actions and the dividend increase as positive developments for Aaron Rents and its shareholders," said R. Charles Loudermilk Sr., chairman and chief executive officer. "The recapitalization amendment will double the outstanding shares of common stock, and the board hopes the increased shares will favorably affect market liquidity over time."
 Aaron Rents, Inc., based in Atlanta, operates more than 150 stores in 21 states for the sale and rental of residential and office furniture and equipment. The company produces furniture at five plants in Georgia and Florida and recently opened its first business equipment rental store in Atlanta.
 -0- 10/7/92
 /CONTACT: Gilbert L. Danielson, vice president-Finance and chief financial officer of Aaron Rents, 404-231-0011/
 (ARON) CO: Aaron Rents, Inc. ST: Georgia IN: REA SU: DIV RCN


BR-BN -- AT002 -- 7393 10/07/92 10:28 EDT
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Publication:PR Newswire
Date:Oct 7, 1992
Words:441
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