UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
April 25, 2000 (April 21, 2000)
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Date of Report (Date of earliest event reported)
Rent-Way, Inc.
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(Exact name of registrant as specified in its charter)
Pennsylvania 000-22026 25-1407782
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(State or other jurisdiction (Commission File Number) (IRS Employer
of corporation) Identification No.)
One RentWay Place, Erie, Pennsylvania 16505
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: (814) 455-5378
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Item 5. Other Events
SAN DIEGO and ERIE, Penn. - April 21, 2000 - Gateway, Inc. (NYSE: GTW) and
Rent-Way, Inc. (NYSE: RWY) today announced that Rent-Way will become the
exclusive rental purchase supplier of Gateway computers and technologies. Under
the agreement, which calls for an initial term of three years, Rent-Way will
offer Gateway computers, complete with Internet access exclusively to customers
on a weekly rental basis. Also as part of the agreement, Gateway Companies, Inc.
will invest $7 million in Rent-Way.
In addition, Rent-Way will integrate Gateway computers and services
throughout its network of 1,100 stores across the country, and is subsidizing
Gateway computers for its 1,100 managers and 150 regional managers.
As the nation's second largest operator of rental purchase stores, Rent-Way
services hundreds of thousands of recurring customers each year providing access
to a range of furniture, appliances and equipment for the home on either a
weekly rental or rent-to-own basis. More than 70 percent of Rent-Way's customers
return to their neighborhood store to take advantage of the service and
immediate access to furniture and appliances for their home.
"We believe every one of our customers, as well as millions of others,
desire the use and access of a high-quality computer and first-class Internet
service," said William E. Morgenstern, chairman and CEO of Rent-Way. "Without
extensive credit delays or the requirement of a credit card, we will offer
Gateway computers and Internet service on a cancelable weekly lease for about
$20 per week - half of the weekly rental price the rest of the industry offers."
Gateway will train Rent-Way's sales associates on Gateway products and
services, provide in-store merchandise to explain its products and services, and
offer on-line training to Rent-Way customers to enable them to take full
advantage of the technology.
"By working with Rent-Way we are able to reach a unique segment of the
consumer market we were unable to reach before," said Todd Bradley, executive
vice president, global operations, Gateway. "The financial flexibility and
immediate access to products Rent-Way offers allow customers to take advantage
of technology and the Internet to change the way they live, work and play."
Rent-Way customers will have access to Gateway PCs and services beginning
in May. The companies anticipate the final closing of the agreement by April 28,
2000.
For more information, contact: William E. Morgenstern, CEO
(800)736-8929 or visit www.rentway.com
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Rent-Way, Inc.
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(Registrant)
Date April 25, 2000 /s/ William A. McDonnell
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(Signature)
William A. McDonnell
Vice President and Chief Financial Officer
Date April 25, 2000 /s/ Matthew J. Marini
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(Signature)
Matthew J. Marini
Controller and Chief Accounting Officer
