Bestway, Inc. Announces Fiscal 2005 First Quarter Results; Same Store Revenues Up 3.5%

Bestway, Inc. Announces Fiscal 2005 First Quarter Results; Same
Store Revenues Up 3.5% 


DALLAS, March 28  /PRNewswire-FirstCall/ -- Bestway, Inc. (OTC Pink Sheets:
BSTW), today released financial results for its first quarter ended October 31,
2004.

For the three months ended October 31, 2004, revenue increased 4.1% to
$9,430,540, compared to $9,059,027 for the first quarter of last year.  Same
store revenues (revenues earned in stores operated for the entirety of both
periods) increased 3.5% in the quarter.  Net earnings decreased to a loss of
$132,536, or $(.08) per share on a diluted basis, compared to income of
$64,505, or $.04 per share on a diluted basis, a year ago.  The Company's
quarterly decline in net earnings resulted primarily from the decision to move
to a more aggressive value-pricing model during the fiscal fourth quarter of
2004.  The Company's value-pricing model is an investment necessary to increase
customer traffic.  It is anticipated that future cost savings in key areas,
combined with revenue increases will result in improved profits over time.  In
addition, the Company incurred expense of $60,202 for the relocation of two
stores.

"I'm pleased to report strong internal enthusiasm for our new value-priced
programs that have been well received by our customers with early results
exceeding expectations," commented David A. Kraemer, President and Chief
Executive Officer.  "While offering our customers an aggressive pricing model,
we've been able to have a positive impact on reducing returns and collection
efforts to focus on growing revenues and customers.  Transitioning to our model
affected earnings with higher depreciation expense.  We are committed to
improving our customers experience with rent-to-own by offering them the lowest
total cost of ownership and we understand that lower margins requires us to
operate at a more optimum level with strict cost controls.  While we continue
to seek cost take outs, it must be understood short term earnings may be
erratic."

On November 19, 2004, the Company filed its Schedule 13E-3 and preliminary
proxy statement in connection with the upcoming annual meeting of the
stockholders of the Company.  At such meeting, the stockholders of the Company
will vote upon, among other things, an amendment to the Company's Amended and
Restated Certificate of Incorporation, which, if approved, would result in a
1-for-100 reverse stock split, such that stockholders owning less than 100
shares of Common Stock will have such shares cancelled and converted into the
right to receive payment of cash, at a rate of $13.00 per each pre-split share
of Common Stock, immediately followed by a 100-for-1 forward stock split.  The
Company is currently awaiting completion of the SEC review of its Schedule
13E-3 and proxy statement before proceeding with the reverse/forward stock
split.  All stockholders will receive a definitive proxy statement once the SEC
has completed its review process.

Bestway, Inc. owns and operates a total of sixty-nine rent-to-own stores
located in the southeastern United States.  These stores generally offer high
quality brand name merchandise such as home entertainment equipment,
appliances, furniture and computers under flexible rental purchase agreements
that generally allow the customer to obtain ownership of the merchandise at the
conclusion of an agreed upon rental period.

This press release and the guidance above contain various "forward-looking
statements" that involve risks and uncertainties.  Forward-looking statements
represent the Company's expectations or beliefs concerning future events.  Any
forward-looking statements made by or on behalf of the Company are subject to
uncertainties and other factors that could cause actual results to differ
materially from such statements.  These uncertainties and other factors
include, but are not limited to, (i) the ability of the Company to open or
acquire additional rental-purchase stores on favorable terms, (ii) the ability
of the Company to improve the performance of such acquired stores and to
integrate such opened or acquired stores into the Company's operations, (iii)
the impact of state and federal laws regulating or otherwise affecting rental-
purchase transactions, (iv) the impact of general economic conditions in the
United States and (v) the impact of terrorist activity, threats of terrorist
activity and responses thereto on the economy in general and the rental-
purchase industry in particular.  Undue reliance should not be placed on any
forward-looking statements made by or on behalf of the Company as such
statements speak only as of the date made.  The Company undertakes no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, the occurrence of future events or otherwise.

   BESTWAY, INC.
   SELECTED BALANCE SHEET DATA

                                               (Unaudited)
                                               October 31,        July 31,
                                                  2004              2004

  Cash and cash equivalents                     $792,249          $692,476
  Prepaid expenses and other assets              251,685           243,619
  Rental merchandise, net                     13,604,377        13,946,095
  Property and equipment, net                  2,089,511         2,235,985
  Total assets                                19,001,339        19,375,622

  Accounts payable                             1,167,685           606,009
  Debt                                         7,679,310         8,433,907
  Total liabilities                           10,404,091        10,657,088
  Stockholders' Equity                         8,597,248         8,718,534



   BESTWAY, INC.
   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                        (Unaudited)
                                                    Three Months Ended
                                                        October 31,
                                                  2004              2003
  Revenues:
     Rental and fee income                    $9,053,956        $8,728,188
     Sales of merchandise                        376,584           330,839
                                               9,430,540         9,059,027

  Cost and operating expenses:
     Depreciation and amortization:
       Rental merchandise                      2,044,490         1,759,171
       Other                                     271,987           328,441
     Cost of merchandise sold                    264,173           254,877
     Salaries and wages                        2,856,362         2,641,325
     Advertising                                 485,250           463,889
     Occupancy                                   668,159           618,270
     Other operating expenses                  2,865,118         2,739,438
     Interest expense                            127,202           152,814
     Loss (gain) on sale of property
      and equipment                               60,202            (2,572)
                                               9,642,943         8,955,653

  Income (loss) before income taxes             (212,403)          103,374
     Income tax (benefit) expense                (79,867)           38,869

  Net income (loss)                            $(132,536)          $64,505

  Basic and diluted net income (loss)
   per share                                      $(0.08)            $0.04

  Weighted average common
   shares outstanding                          1,683,872         1,678,672

  Diluted weighted average common
   shares outstanding                          1,683,872         1,835,559


DATASOURCE: Bestway, Inc.



CONTACT:  Beth A. Durrett, Chief Financial Officer,

 , or David A. Kraemer, President and Chief Executive

Officer,  , both of Bestway, Inc., [phone]

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