safe harbor statement “safe harbor” statement under the private securities litigation reform act...

Safe Harbor Statement

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this presentation regarding Aaron Rents, Inc.’s business which are not

historical facts are “forward-looking statements” that involve risks and uncertainties

which could cause actual results to differ from those contained in the forward-

looking statements. For a discussion of such risks and uncertainties, see “Risk

Factors” in the Company’s Annual Report on Form 10-K for fiscal 2005. Statements

in this presentation that are “forward-looking” include without limitation the

Company’s projected revenues, earnings, and store openings for 2006 and beyond.

This presentation shall not constitute an offer to sell, or the solicitation of an offer to

buy, any securities of Aaron Rents, Inc.

Aaron Rents, Inc.

Company Overview

Industry innovator in the sales and lease ownership of consumer electronics, furniture, appliances and accessories

Rapidly growing franchise system

Over 1,200 Company-operated and franchised stores in 46 states, Puerto Rico, and Canada

Growth prospects remain strong

Aaron Rents, Inc.

Investment Highlights

Large market – estimated 43% of all US households

Proven business model in both strong and weak economies

Rapid store expansion sets the stage for substantial revenue and earnings growth

Large pipeline of awarded franchises is accelerating the penetration of new markets

Experienced, highly motivated management

Aaron Rents, Inc.

Sales and Lease Ownership

An attractive vehicle for credit-challenged consumers to acquire electronics, furniture, and household appliances

A hybrid of traditional rent-to-own and credit retailing, combining the best features of each

Aaron Rents, Inc.

Competitive Advantages

“Combines the best of traditional rent-to-own and credit retailing”

Larger Store Layout9,000 sq. ft. vs. 4,500 sq. ft.

Faster Ownership Lower Total Cost

Wider Merchandise SelectionFlexible Payment Methods49% use check or credit cards

Fewer Payments12, 18 or 24 monthly payments

Aaron Rents, Inc.

A Winning Concept for Consumers

Ideal for credit-constrained consumer

Products may be returned at any time without further financial obligation

Lower total cost than rent-to-own competitors

Flexible payment options – cash,

check, or credit card

Wider selection of new merchandise

Aaron Rents, Inc.

A Winning Concept for Aaron’s

A more effective method of retailing to lower- to middle-income customers

Generates considerable repeat business

Aaron Rents, Inc.

Attractive, Well-Located Stores

Aaron Rents, Inc.

With Broad Merchandise Selections

Aaron Rents, Inc.

Sales and Lease OwnershipMerchandise Mix

A ppl i anc es and

E l ec tr oni c s

52%

Fur ni tur e

35%

C omputer s

12%

Other

1%

Electronics and Appliances

52%Furniture

33%

Computers

13%

Other

2%

Aaron Rents, Inc.

Merchandising

RCA 52” Integrated Digital

HDTV Widescreen

Cash & Carry $1,333.33

Lease (mo.) 99.99

Lease Ownership (24 mo.) 2,399.76

All-In Leasing Cost 2,639.74(includes 10% Aaron’s Service Plus)

Our Cost 1,030.00

Aaron’s is the largest vendor of RCA Widescreen TVs in the USA

Aaron Rents, Inc.

Profile of Operations

ManufacturingFacility

Store

Delivery to Customer

FulfillmentCenter

Vendors

Aaron Rents, Inc.

Operational Highlights

Stores draw from 6 to 10 mile urban radius or 2 to 3 rural counties

Average customer pays over $145 per month

Majority of customers will repeat

Established and thorough store audit program

Write-offs consistently less than 3% of revenues

Additional opportunities with Dell

Aaron Rents, Inc.

Marketing

• Strong NASCAR marketing program

• Dream Products• Sponsorship of Aaron’s Dream

Machine• Sponsorship of Aaron’s races

in Talladega

• Sponsorship of Arena Football League

• Currently over 20 million direct mail circulars monthly

Aaron Rents, Inc.

Franchise Program

• Highly successful franchise program now in 14th year

• 400 franchised stores open at March 31, 2006

• 250 awarded stores to open within 3 years

• Franchising accelerates growth

• Increases brand exposure

• Generates economies of scale

• Provides acquisition opportunities

Aaron Rents, Inc.

Franchised Growth

Pre-Tax Income

CAGR 29%

$12,621$13,913

$16,661

$19,347

$25,093

$29,474

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000$20,000$22,000$24,000$26,000$28,000$30,000

($ in

thou

san

ds)

2000 2001 2002 2003 2004 2005

$7,484$9,212

$10,919

$13,600

$18,374

$22,363

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000$20,000$22,000$24,000

($ in

thou

sand

s)2000 2001 2002 2003 2004 2005

CAGR 24.5%

Pre-Tax IncomeFranchised Revenues

CAGR 18.5%

Aaron Rents, Inc.

Vertical Integration & Corporate Furnishings

12 manufacturing facilities ensure quality, cost, quantity and service standards

16 strategically located fulfillment centers

Facilitate same or next day delivery from most stores

Facilitate inventory management

Aaron’s Corporate Furnishings business serves temporary needs of corporations and consumers

Aaron Rents, Inc.

Geographic Diversity

Aaron Rents, Inc.

Aaron Rents, Inc.

Financial Overview

Record Company Revenues

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

($ in

mill

ions

)

2000 2001 2002 2003 2004 2005 2006 Proj.

$503

$547

$641

$767

$946

$1,125

$1,300

Aaron Rents, Inc.

Franchised Revenues*

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

($ in

mill

ions

)

2000 2001 2002 2003 2004 2005 2006 Proj.

* Franchised revenues are not revenues of Aaron Rents, Inc.

$161$199

$246$281

$358

$420

$500

Aaron Rents, Inc.

Net Earnings & Earnings Per Share

$27,261

$12,336

$27,440

$36,426

$52,616

$57,993

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

($ in

tho

usan

ds)

2000 2001 2002 2003 2004 2005

$0.61 $0.57

$0.73

$1.04

$0.27

$1.14

Aaron Rents, Inc.

Aggressive Store Expansion

361

193

439

209

482

232

560

287

674

357

806

392

823

400

0

250

500

750

1,000

1,250

2000 2001 2002 2003 2004 2005 As of 3/31/06

Company-Operated Franchised

554 648

847

1,031

714

1,1981,223

Company-Operated Sales & Lease Ownership Stores

Same Store Revenue Growth

10.6%

13.7% 14.7%

10.9%

8.0% 8.3%7.3%

8.4%

11.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Q4 2003

Q1 2004

Q2 2004

Q3 2004

Q4 2004

Q1 2005

Q2 2005

Q3 2005

Q4 2005

Aaron Rents, Inc.

Attractive New Store Economics*

$1,211$1,183

$1,096

$939

$504

$28

$84

$106 $119

($141)($150)

$50

$250

$450

$650

$850

$1,050

$1,250

Year 1 Year 2 Year 3 Year 4 Year 5

($150)

($100)

($50)

$0

$50

$100

$150

Revenues

Pre-tax Earnings

*As published in Aaron Rents, Inc.’s 2006 Uniform Franchise Offering Circular (UFOC).

Based upon historical average Aaron’s Sales & Lease Ownership store performance Aaron Rents, Inc.

Revenues (in thousands)

Pre-T

ax Earnings (in thousands)

Outlook

Expect first quarter 2006 revenues in excess of $315

million and diluted EPS in the range of $.38 to $.41

For the fiscal year 2006 expect revenues to be in excess

of $1.3 billion with diluted EPS in the range of $1.45 to

$1.55

Outlook for next several years is to increase store base

approximately 15% per annum

Aaron Rents, Inc.

Growth Strategy

Build revenues and earnings in existing Company-operated and franchised stores

Aggressively open Company-operated and franchised stores

Seek opportunistic acquisitions

Aaron Rents, Inc.

Investment Highlights

Proven growth record

Proven business model

Proven management team

Financial strength

Aaron Rents, Inc.