Conn's, Inc. Reports Earnings for the Quarter Ended April 30, 2007.

BEAUMONT, Texas -- Conn's, Inc. (NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer electronics, computers, mattresses, furniture and lawn and garden products, today announced earnings results for the quarter ended April 30, 2007.

Net income for the first fiscal quarter increased 8.3% to $12.9 million compared with $11.9 million for the first quarter of last year. Diluted earnings per share grew 10.2% to $0.54 compared with $0.49 for the first quarter of last year. Total revenues for the quarter ended April 30, 2007, increased 6.8% to $205.3 million compared with $192.2 million for the quarter ended April 30, 2006. This increase in revenue included increases in net sales of $9.7 million, or 5.6%, and an increase in "Finance charges and other" of $3.5 million, or 16.9%. Same store sales (revenues earned in stores operated for the entirety of both periods) decreased 0.3% for the first quarter of fiscal 2008. As previously disclosed, the same store sales increase for the quarter ending April 30, 2006, of 16.1%, was positively impacted by hurricanes Katrina and Rita.

Credit portfolio performance continued to improve as delinquencies were sequentially lower over the past three quarters and credit loss rates were sequentially lower over the past four quarters. Additionally, the credit loss rate was significantly lower than the first quarter of the prior year. The credit portfolio grew at an annualized rate of 10% during the first quarter of fiscal 2008, benefited by growth in promotional credit balances. Promotional credit (same as cash and deferred interest programs) is reserved for our highest credit quality customers, thereby reducing the overall risk in the portfolio, and is used primarily to finance sales of our highest margin products. The current volume of promotional credit relative to product sales is consistent with our use of this type of credit product before the hurricanes in late 2005, which positively impacted our sales for several quarters and reduced the need to use promotional credit during that time period. More information on the credit portfolio and its performance may be found in the table included with this press release and in the Company's filing with the Securities and Exchange Commission on Form 10-Q which will be filed later today.

During the first quarter of fiscal 2008 the Company adopted several new accounting pronouncements related to the accounting for its "Interests in securitized assets." These pronouncements resulted in the Company electing to account for its interests in securitized assets at fair value, with all changes in the fair value included in "Finance charges and other." This change in accounting was adopted effective February 1, 2007, and prior periods are not adjusted. "Finance charges and other" increased $0.1 million due to the fair value mark-to-market adjustment, which was driven by the increase in the sold portfolio balance and other changes impacting the valuation assumptions. More information on these changes may be found in the Company's filing with the Securities and Exchange Commission on Form 10-Q which will be filed later today.

"We are off to a solid start and on track to achieve our goals for the year," said Thomas J. Frank, Sr., the Company's Chairman and CEO. "We were still feeling the effects of the storm at this time last year and performed well this quarter against a very strong quarter last year. I am encouraged by the performance of our credit operation and look forward to improved results after a difficult year."

As part of the previously announced stock repurchase plan, the company repurchased 178,000 shares of common stock during the three months ended April 30, 2007 and an additional 79,500 shares through May 30, 2007. The Company has repurchased 425,500 shares since the inception of the plan and intends to continue repurchasing shares up to the authorized limit of $50 million dependent upon market conditions and share price.

During the quarter ended April 30, 2007, the Company received $8.7 million from the sales of two store locations. The Company entered into leases on all or a portion of both locations and, as such, the transactions qualified for sale-leaseback accounting. As a result, the Company recorded $0.8 million of gains on the sales in "Other income, net" and deferred $1.3 million of gains, which will reduce lease expense over the terms of the leases.

The Company currently has 62 stores in operation with development activities underway in new and existing markets. The Company expects to open 7 to 10 new stores in the current year, primarily in the last half of the year.

EPS Guidance

Today, the Company is confirming its guidance for its fiscal year 2008 (the year ending January 31, 2008) of earnings per diluted share in a range of $1.75 to $1.85.

Conference Call Information

Conn's, Inc. will host a conference call and audio webcast today, May 31, 2007, at 10:00 AM, CDT, to discuss financial results for the quarter ended April 30, 2007. The webcast will be available live at www.conns.com and will be archived for one year. Participants can join the call by dialing 800-811-8824 or 913-981-4903.

About Conn's, Inc.

The Company is a specialty retailer currently operating 62 retail locations in Texas and Louisiana: twenty one stores in the Houston area, fourteen in the Dallas/Fort Worth Metroplex, nine in San Antonio, five in Austin, four in Southeast Texas, one in Corpus Christi, two in South Texas and six stores in Louisiana. It sells major home appliances, including refrigerators, freezers, washers, dryers and ranges, and a variety of consumer electronics, including projection, plasma, DLP and LCD televisions, camcorders, computers and computer peripherals, DVD players (both standard and high definition), portable audio and home theater products. The Company also sells lawn and garden products, furniture and mattresses, and continues to introduce additional product categories for the home to help respond to its customers' product needs and to increase same store sales.

Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. In the last three years, the Company has financed, on average, approximately 58% of retail sales. Customer receivables are financed substantially through an asset-backed securitization facility, from which the Company derives servicing fee income and interest income. The Company transfers receivables, consisting of retail installment contracts and revolving accounts for credit extended to its customers, to a qualifying special purpose entity in exchange for cash and subordinated securities represented by asset-backed and variable funding notes issued to third parties.

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to be correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the Company's growth strategy and plans regarding opening new stores and entering new markets; the Company's intention to update or expand existing stores; the Company's estimated capital expenditures and costs related to the opening of new stores or the update or expansion of existing stores; the Company's cash flow from operations, borrowings from its revolving line of credit and proceeds from securitizations to fund operations, debt repayment and expansion; growth trends and projected sales in the home appliance and consumer electronics industry and the Company's ability to capitalize on such growth; relationships with the Company's key suppliers; the results of the Company's litigation; interest rates; weather conditions in the Company's markets; delinquency and loss trends in the sold receivables portfolio; changes in the Company's stock price; and the actual number of shares of common stock outstanding. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K which was filed on March 29, 2007. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]