Media Contact: Investor Contact:
Dick Gersh Rick Nida
Richard Gersh Associates Rentrak Corporation
212-757-1101 503-284-7581 Ext. 295
FOR IMMEDIATE RELEASE:
RENTRAK SHAREOWNERS ELECT FIVE NEW DIRECTORS
NEW CHAIRMAN EXPRESSES CONFIDENCE IN COMPANY'S FUTURE
PORTLAND, Ore. (Sept. 20, 2000)--Rentrak Corporation (Nasdaq:RENT) today
announced that at its Annual Shareowners' Meeting held on Sept 19, 2000, the
following five directors were elected to its board: Cecil D. Andrus, George H.
Kuper, Joon S. Moon, James G. Petcoff, and Paul A. Rosenbaum. Each of the five
directors elected were part of a slate nominated by the Committee for the
Achievement of Rentrak Excellence (CARE), a group of nine individual Rentrak
shareowners led by Paul A. Rosenbaum. Shareowners also passed a CARE proposal to
amend Rentrak's Bylaws to reduce the number of directors from nine to five.
In announcing the results of the vote, Ron Berger, Rentrak's outgoing
Chairman said, "Today starts a new chapter in the life of the Rentrak
organization, as shareowners have placed their confidence in a totally new board
of directors. Though I will no longer be associated with Rentrak's board, as the
company's largest shareowner, I wish the company, the new board, shareowners and
employees well."
Paul A. Rosenbaum, who was elected Chairman of the Board and will serve as
Interim Chief Executive Officer, said, "We are very pleased that shareowners
have given us the opportunity to build value for them as we implement our
strategic vision for this excellent company. We view this transition as an
exciting time for Rentrak's shareowners and employees to take a fresh view of
the opportunities and challenges facing Rentrak. Though Rentrak's revenues and
earnings have suffered recently, we believe we can quickly elevate the company's
core Pay-Per-Transaction (PPT(R)) video distribution business to the next level,
and we intend to explore opportunities to attract capital and increase the value
of 3PF.COM, Inc. (3PF), the company's e-fulfillment subsidiary."
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Mr. Rosenbaum, continued, "We wish to thank Ron Berger for his vision and
leadership during his many years at Rentrak's helm. The new board of Rentrak
intends to commence a search for a permanent chief executive officer promptly.
F. Kim Cox, Rentrak's President, will continue in his operational leadership
role and ensure continuity for employees, customers, and suppliers."
"We believe that we have the right organization in place and that it is
sized right for the anticipated growth in our core PPT(R) business," Mr. Cox
said. "We intend to continue to provide excellent uninterrupted service to our
customers and expect to offer an expanded slate of titles from suppliers as we
work with studios to improve opportunities for video retailers." Mr. Cox added,
"Since we expect rapid revenue growth at 3PF, we anticipate continued expansion
of its distribution center capacity and its work force."
Rentrak Corporation, through its PPT(R) system, is the world's largest
distributor of pre-recorded videocassettes on a revenue-sharing basis. The
company directly services retailers throughout the U.S. and Canada and, through
affiliated companies, supplies a growing number of international outlets in
Japan and the United Kingdom.
3PF, 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,
with a total of 320,000 square feet of warehouse space. An additional 120,000
square foot facility is scheduled to open in the near future. 3PF can be
accessed on the Web at http://www.3PF.COM.
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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.
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