Fiscal 2008 was our first year of earnings decline in eight years, and that is as disappointing to us as it is to shareholders. However, I am very optimistic that in 2009, we will return your Company to a year of solid growth.
David Ingram, President and CEO, easyhome

Revenue for the quarter ended December 31, 2008 was $44.1 million, an increase of $5.3 million or 13.5% compared with the same period a year ago. Operating income decreased to $3.4 million from $5.2 million a year earlier. Net income for the period was $1.8 million, compared to $2.7 million for 2007. Diluted earnings per share were $0.17 versus $0.26 the previous year.

For the full fiscal year, revenue was $162.5 million compared with $143.7 million for fiscal 2007. Diluted earnings per share were $0.84 versus $1.11 for the previous year.

easyhome will hold its quarterly management conference call on Friday, March 6, 2009 at 11 am EST. The conference call will be broadcast live over the internet.

Factors Affecting the Fourth Quarter

The acquisition of Insta-rent Inc. ("Insta-rent") in the third quarter increased revenue by approximately $3.5 million in the quarter. However, the integration process was a significant effort, and was not completed until year-end. It involved transferring more than 8000 Insta-rent accounts, closing 42 kiosk locations, closing redundant storage locations and the disposition of excess vehicles. As a result, the Company incurred $0.7 million in increased operating costs as the integration took longer than expected to complete.

The Company also incurred higher lease amortization in the quarter (31.8% versus 29.4% in Q4/08). Approximately $0.8 million of this increase relates to damaged or missing inventory which arose as result of weaker inventory disciplines at the store level. The Company believes that these items were isolated to this quarter and reduced diluted earnings per share by approximately $0.10 in the quarter.

Commenting on the results, David Ingram, President and CEO stated, "Despite the challenges of 2008 we are enthused by the benefits that our new initiatives will provide our growing organization. Our new IT system is more efficient and more adaptable to our different formats, while providing data faster and in more detail than our previous systems. Insta-rent added approximately 10% more customers and expanded our brand in 42 markets where we had co-existed. As we stated in November, 2008, our focus in 2009 will be on rigorous cost controls, improving same store profitability, and keeping the Canadian core business free from new distractions."

Mr. Ingram added, "We anticipate solid sequential improvement to our Q1 results as the operations team execute tighter cost management and improved cash collections which have shown success during the first two months of this quarter. In January, we rolled out a customer benefit program, which will provide unemployment insurance and some peace of mind to customers during this recession. We expect the easyfinancial division to continue growing its operating profit as we add six to eight kiosks in 2009. The US division is targeted to achieve break-even later this year, which will also allow the Company to tax effect its cumulative losses."

easyhome provides an alternative for the cash and credit constrained customer who we believe will benefit from the economic stimulus package proposed in the US and Canada. However, it is impossible to assess the depth and duration of this recession.

2009 targets are:

- Total revenue growth of 13-15%

- Same store revenue growth of 3.5-5.0%.

Mr. Ingram concluded, "The fewer new corporate stores, combined with a reduction in capital spend, has resulted in a targeted reduction of $10 million in net debt. Fiscal 2008 was our first year of earnings decline in eight years, and that is as disappointing to us as it is to shareholders. However, I am very optimistic that in 2009, we will return your Company to a year of solid growth."

Donald K. Johnson, the Chairman of the Board, commented, "2008 was a very challenging and disappointing year for our Company. It was the first time in eight years that our management team has not met or exceeded plan. However, with the distractions associated with the IT conversion and the Insta-rent acquisition now behind us, and management focused on execution of our business plan, we look forward to easyhome returning to its track record of consistent growth in revenues, profits and dividends."

The Board of Directors has approved a dividend payment of $0.085 per share payable on April 10, 2009 to the holders of common shares of record as at the close of business on March 31, 2009.

As at December 31, 2008, easyhome Ltd. had 229 stores, including 209 Canadian corporate stores, eleven U.S. corporate stores, three U.S. franchised stores, five Canadian franchised stores and one licensed Canadian store.