Barrack Rodos & Bacine Announces Class Action Lawsuit Against Rent-Way, Inc.

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Nov. 13, 2000

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

A class action has been commenced in the United States District Court for the Western District of Pennsylvania, charging Rent-Way, Inc. ("Rent-Way") (NYSE:RWY) with violations of federal securities laws. It seeks damages on behalf of all investors who bought Rent-Way common stock between January 18, 2000 and October 30, 2000 (the "Class Period").

To sign up online: http://www.barrack.com/NewCases/NewCases.htm

Rent-Way is an Erie, Pa.-based operator of rental-purchase stores. The complaint charges the defendants with issuing materially false and misleading financial statements and news releases concerning Rent-Way's publicly reported earnings for the fiscal year ending September 30, 2000. During the Class Period, the defendants reported "record" financial results for the first three quarters of 2000 - results that purportedly represented a dramatic improvement over Rent-Way's results for the 1999 fiscal year.

But on October 30, 2000, the company disclosed that it was conducting an investigation into possible "accounting irregularities" and had retained outside counsel to assist in the probe. The company also reported that it had suspended its corporate controller and that its president and chief operating officer had relinquished his operating responsibilities. Rent-Way indicated that the irregularities would have an impact of $25 to $35 million on a pre-tax basis, meaning that it would need to reduce its 2000 fiscal year earnings by at least that amount. The company also admitted that it would be unable to meet its earnings expectations as previously indicated. On October 31, 2000, the day after Rent-Way issued its news release, the price of its common stock plunged 79% to close at $5 per share.

The plaintiff seeks to recover damages on behalf of all purchasers of Rent-Way publicly traded securities during the Class Period. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex cases. For more information about Barrack, Rodos & Bacine, please visit their website at www.barrack.com.

If you purchased securities of Rent-Way during the class period you may, no later than January 2, 2001, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838 or by e-mail at [e-mail].