Rentrak Restructures Relationship With Rentrak Japan

Transaction Reduces Rentrak's Outstanding Shares of Common Stock

By 8.2 Percent



Apr 05, 2001, 01:00 ET from Rentrak Corporation

    PORTLAND, Ore., April 5 /PRNewswire/ -- Rentrak Corporation (Nasdaq:   RENT)
 and Rentrak Japan Co., Ltd. today announced that the companies have
 reorganized their cooperation arrangement and updated their business
 relationship by entering into a partnership agreement to position the two
 companies for more efficient growth and for stronger promotion of PPT(R) on a
 worldwide basis.  The restructuring will result in a total value to Rentrak of
 $15.2 million, of which $9.2 million will be cash payments to be received over
 the next seven months.  For Rentrak Japan the obligation to pay yearly
 royalties will cease with the transfer of operating rights and trademark
 rights in consideration for a lump-sum payment ($5.65 million in cash) and a
 release of obligations due from Rentrak Corporation ($2.1 million).
     Paul Rosenbaum, Rentrak's Chairman and Chief Executive Officer said, "This
 new structure maximizes the new growth opportunities for Rentrak and Rentrak
 Japan individually, while keeping intact our relationship, which we value
 highly.  This new partnership will focus our joint efforts on delivering real
 value to our retail and studio customers and enable each of us to develop new
 products, technologies and services."
     Under the new arrangement, Rentrak has sold 62.5 percent of ownership of
 Rentrak Japan for a total of $4 million.  Rentrak has the right to sell its
 remaining shares in Rentrak Japan at the same price per share for a total of
 $2.4 million.
     In the reorganization, Rentrak repurchased 614,000 shares of its common
 stock at $3.87 a share for a total of $2.4 million.
     In a separate transaction, Rentrak repurchased 390,000 shares of its
 common stock for a total of $1.5 million, or $3.87 a share.  This transaction
 includes the sale of 1 percent of Rentrak's third-party fulfillment
 subsidiary, 3PF, Inc., for $1 million.
     Mark Thoenes, Rentrak's Chief Financial Officer said, "We are very pleased
 to buy back a substantial block of our stock at a price that is very
 attractive and will deliver real value to our shareowners."
     "We are very satisfied with the agreement providing for a terrific
 partnership going into the future," said Takaaki Kusaka, President of Rentrak
 Japan.  "We expect a close working relationship with Rentrak as we each
 proceed to advance the PPT(R) system in other international markets."
     "We expect the influx of cash to have a major impact on Rentrak's growth
 plans," Mr. Rosenbaum said.  "We intend to use the cash to more quickly
 leverage our PPT(R) technology into the video on demand (VOD) arena, expand
 our PPT(R) information processing business into other applications, further
 develop our third-party fulfillment subsidiary, 3PF, and to reduce our
 outstanding line of credit balance."
     Rentrak Japan was formed in 1989.  The company distributes videocassettes,
 DVDs and video games on a revenue-sharing basis throughout Japan.  The company
 recently announced the formation of Rentrak Korea.
     Rentrak Corporation, through its pay-per-transaction (PPT) system, is the
 world's largest distributor of pre-recorded videocassettes on a
 revenue-sharing basis.  Rentrak's corporate Web site is
 http://www.rentrak.com.
     3PF, Inc., a wholly owned subsidiary, provides fulfillment, order
 processing and inventory management services for e-commerce companies and
 other companies requiring just-in-time fulfillment.  It operates two
 Midwestern hub-based distribution centers offering late night order cut-off
 and 24/7 capabilities.  3PF can be accessed on the Web at http://www.3PF.COM.
 
     When used in this discussion, the words "anticipates," "expects,"
 "intends" and similar expressions are intended to identify forward-looking
 statements.  Such statements relate to, among other things, the revenues and
 results of operations for both 3PF and PPT(R) and are subject to certain risks
 and uncertainties that could cause actual results to differ materially from
 those projected.  Factors that could affect Rentrak's financial results
 include customer demand for videocassettes subject to company guarantees and
 Rentrak and 3PF customers continuing to comply with the terms of their
 agreements.  Additional factors that could affect Rentrak's financial results
 are described in Rentrak's March 31, 2000, annual report on Form 10-K, filed
 with the Securities and Exchange Commission. Results of operations in any past
 period should not be considered indicative of the results to be expected for
 future periods.
 
 

SOURCE Rentrak Corporation
    PORTLAND, Ore., April 5 /PRNewswire/ -- Rentrak Corporation (Nasdaq:   RENT)
 and Rentrak Japan Co., Ltd. today announced that the companies have
 reorganized their cooperation arrangement and updated their business
 relationship by entering into a partnership agreement to position the two
 companies for more efficient growth and for stronger promotion of PPT(R) on a
 worldwide basis.  The restructuring will result in a total value to Rentrak of
 $15.2 million, of which $9.2 million will be cash payments to be received over
 the next seven months.  For Rentrak Japan the obligation to pay yearly
 royalties will cease with the transfer of operating rights and trademark
 rights in consideration for a lump-sum payment ($5.65 million in cash) and a
 release of obligations due from Rentrak Corporation ($2.1 million).
     Paul Rosenbaum, Rentrak's Chairman and Chief Executive Officer said, "This
 new structure maximizes the new growth opportunities for Rentrak and Rentrak
 Japan individually, while keeping intact our relationship, which we value
 highly.  This new partnership will focus our joint efforts on delivering real
 value to our retail and studio customers and enable each of us to develop new
 products, technologies and services."
     Under the new arrangement, Rentrak has sold 62.5 percent of ownership of
 Rentrak Japan for a total of $4 million.  Rentrak has the right to sell its
 remaining shares in Rentrak Japan at the same price per share for a total of
 $2.4 million.
     In the reorganization, Rentrak repurchased 614,000 shares of its common
 stock at $3.87 a share for a total of $2.4 million.
     In a separate transaction, Rentrak repurchased 390,000 shares of its
 common stock for a total of $1.5 million, or $3.87 a share.  This transaction
 includes the sale of 1 percent of Rentrak's third-party fulfillment
 subsidiary, 3PF, Inc., for $1 million.
     Mark Thoenes, Rentrak's Chief Financial Officer said, "We are very pleased
 to buy back a substantial block of our stock at a price that is very
 attractive and will deliver real value to our shareowners."
     "We are very satisfied with the agreement providing for a terrific
 partnership going into the future," said Takaaki Kusaka, President of Rentrak
 Japan.  "We expect a close working relationship with Rentrak as we each
 proceed to advance the PPT(R) system in other international markets."
     "We expect the influx of cash to have a major impact on Rentrak's growth
 plans," Mr. Rosenbaum said.  "We intend to use the cash to more quickly
 leverage our PPT(R) technology into the video on demand (VOD) arena, expand
 our PPT(R) information processing business into other applications, further
 develop our third-party fulfillment subsidiary, 3PF, and to reduce our
 outstanding line of credit balance."
     Rentrak Japan was formed in 1989.  The company distributes videocassettes,
 DVDs and video games on a revenue-sharing basis throughout Japan.  The company
 recently announced the formation of Rentrak Korea.
     Rentrak Corporation, through its pay-per-transaction (PPT) system, is the
 world's largest distributor of pre-recorded videocassettes on a
 revenue-sharing basis.  Rentrak's corporate Web site is
 http://www.rentrak.com.
     3PF, Inc., a wholly owned subsidiary, provides fulfillment, order
 processing and inventory management services for e-commerce companies and
 other companies requiring just-in-time fulfillment.  It operates two
 Midwestern hub-based distribution centers offering late night order cut-off
 and 24/7 capabilities.  3PF can be accessed on the Web at http://www.3PF.COM.
 
     When used in this discussion, the words "anticipates," "expects,"
 "intends" and similar expressions are intended to identify forward-looking
 statements.  Such statements relate to, among other things, the revenues and
 results of operations for both 3PF and PPT(R) and are subject to certain risks
 and uncertainties that could cause actual results to differ materially from
 those projected.  Factors that could affect Rentrak's financial results
 include customer demand for videocassettes subject to company guarantees and
 Rentrak and 3PF customers continuing to comply with the terms of their
 agreements.  Additional factors that could affect Rentrak's financial results
 are described in Rentrak's March 31, 2000, annual report on Form 10-K, filed
 with the Securities and Exchange Commission. Results of operations in any past
 period should not be considered indicative of the results to be expected for
 future periods.
 
 SOURCE  Rentrak Corporation