BESTWAY, INC. ANNOUNCES FISCAL 2005 THIRD QUARTER RESULTS

Same Store Revenues Up 10.2%
Eleven consecutive quarters of increased same store revenues

(Dallas, Texas – July 1, 2005) Bestway, Inc. today released financial results for its third quarter ended April 30, 2005.

For the three months ended April 30, 2005, revenue increased 10.7% to $10,463,431, compared to $9,447,879 for the third quarter of last year. Same store revenues (revenues earned in stores operated for the entirety of both periods) increased 10.2% in the quarter. Net earnings in the third quarter increased to $189,260, or $.11 per share on a diluted basis, compared with $88,010, or $.05 per share on a diluted basis a year ago. The Company’s quarterly increase in net earnings resulted primarily from continued revenue increases as a result of its aggressive value-pricing model offering customers the lowest total cost of ownership implemented during the fiscal fourth quarter of 2004.

For the nine months ended April 30, 2005, revenue increased 6.5% to $29,888,424, compared to $28,071,100 for the nine months ended April 30, 2004. Same store revenues increased 6.3% in the nine months. Net earnings for the nine month period ended April 30, 2005 decreased to $48,174, or $.03 per share on a diluted basis, compared to $311,723, or $.17 per share on a diluted basis a year ago.

“We have achieved eleven straight quarters of same store revenue growth which has returned the Company to profitability,” commented David A. Kraemer, President and Chief Executive Officer. “We are very pleased with our consistent revenue growth, which we attribute to our team’s commitment and execution, as well as our customer’s acceptance of our programs. As anticipated, continued revenue increases combined with cost savings in key areas help offset higher depreciation. We believe our value-pricing model will continue to drive increased same store revenues and profitability, which allows us to pursue new store openings, as this is an area of focus going forward.”

On May 23, 2005, the Company held its Annual Meeting of Stockholders, at which time the stockholders approved of a reverse stock split of the outstanding shares of the Company’s common stock (the “Common Stock”) in a ratio of 1-for-100 (the “Reverse Stock Split”), immediately followed by a forward stock split of the outstanding shares of the Common Stock in a ratio of 100-for-1 (the “Forward Stock Split” and together with the Reverse Stock Split, the “Reverse/Forward Stock Splits”). The proposal passed with a majority vote of the holders of the outstanding shares of the Common Stock. The aggregate number of shares of Common Stock represented in person or by proxy at the Annual Meeting represented 94.7% of the 1,791,917 issued and outstanding shares of Common Stock and constituted a quorum for the transaction of business.

As a result of the Reverse/Forward Stock Splits, the Company has fewer than 300 record holders of its Common Stock, permitting the Company to terminate the registration of its Common Stock with the Securities and Exchange Commission under the Securities Act of 1934, as amended. The Company filed for termination of such registration on May 26, 2005.

Bestway, Inc. owns and operates a total of seventy 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.

BESTWAY, INC.
SELECTED BALANCE SHEET DATA

BESTWAY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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.