Berman DeValerio & Pease Announces Class-Action Lawsuit Against Rent-Way, Inc.

Business Editors and Legal Writers

PITTSBURGH--(BUSINESS WIRE)--Nov. 3, 2000

Shareholders are pursuing a class-action lawsuit in federal court that accuses Rent-Way, Inc. (NYSE: RWY) of stock fraud, the law firm of Berman DeValerio & Pease LLP (www.bermanesq.com) said.

The lawsuit was filed November 1 in the United States District Court for the Western District of Pennsylvania. It seeks damages for violations of federal securities laws on behalf of all investors who bought Rent-Way common stock between January 18, 2000 and October 30, 2000 (the "Class Period"). Rent-Way is an Erie, Pa.-based operator of rental-purchase stores. Berman DeValerio & Pease, which is based in Boston, has represented defrauded investors in class actions for nearly two decades.

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. The results purportedly represented a dramatic improvement over Rent-Way's fiscal year 1999 financial results.

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 "accounting irregularities" would have an impact of $25 to $35 million on a pre-tax basis, meaning that it would have 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 press release, the price of its common stock plunged 79% to close at $5 per share.

If you purchased Rent-Way's common stock during the period of January 18, 2000 through October 30, 2000, you may wish to contact the following attorneys at Berman DeValerio & Pease to discuss your rights and interests:

Alicia M. Duff, Esq.

Michael G. Lange, Esq.

Jeffrey C. Block, Esq.

Berman DeValerio & Pease LLP

One Liberty Square, Boston, MA 02109

[e-mail]

[phone]

You may also visit us at our website at www.bermanesq.com.

If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than January 2, 2001. To be a member of the class you need not take any action at this time and you may retain counsel of your own choice. To serve as lead plaintiff, however, you must meet certain legal requirements. You may contact the attorneys at Berman DeValerio & Pease to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action.

With offices in Boston and San Francisco, Berman DeValerio & Pease LLP has prosecuted shareholder class actions since 1982, recovering more than $1 billion for investors. The firm has acted as lead counsel in numerous lawsuits in which its clients accused companies of violating federal securities laws. It has successfully litigated these actions, and has been singled out for its excellence by many courts. The firm prides itself on its responsiveness to shareholders and their needs in each case.