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-Expansion of network continues; strong results to start new fiscal year- TSX-V Trading Symbol: FSN CALGARY, Feb. 29 /PRNewswire-FirstCall/ - Franchise Services of NorthAmerica Inc. ("FSNA" or the "Company") announced today its first quarterresults for the period ending December 31, 2007. Revenue for the threemonths ending December 31, 2007 was $4.2 Million USD and net income was$279,353 USD. Both were in line with management's expectations, and compareto revenue of USD $5.3 Million and a net loss of USD ($158,019) for thefirst quarter of last year as restated in the Company's 2007 AnnualFinancial Statement, and Management's Discussion and Analysis, available athttp://www.sedar.com. The prior year first quarter results (as restated) include four monthsof U-Save's results and only one month of Practicar Systems Inc., theCanadian subsidiary which operates the Rent-A-Wreck Brand in Canada, due tothe November 2006 Business Combination Transaction ("BCT") between U-SaveAuto Rental of America, Inc. and the predecessor company, Rent-A-WreckCapital Inc. Reference is hereby made to the company's filings on Sedar, athttp://www.sedar.com, for a detailed description of the BCT and the relatedfinancial information. "We are very pleased to announce these results today. It was a strongquarter for us financially, with the Master Franchise sale for the Countryof Mexico, which currently has two operating locations in Puerto Vallartaand Guadalajara. We also previously announced, subsequent to the end of thequarter, the opening of our two newest airport locations in San Diego,California and Colorado Springs, Colorado, in addition to three newRent-A-Wreck franchises representing four rental locations. Franchise saleshave started off strong and we are excited about the pace at which thesystem is expanding," said Robert M. Barton, Chief Operating Officer of theCompany. About FSNA ---------- FSNA is a publicly traded company on the TSX Venture Exchange. Thecompany and its subsidiaries own the following brands: U-Save Car & TruckRental, U-Save Car Sales, Rent-A-Wreck of Canada, Auto Rental ResourceCenter ("ARRC"), Xpress Rent A Car and Peakstone Insurance. U-Save, with its subsidiary ARRC, has over 1,100 locations throughoutthe United States and is one of North America's largest franchise carrental companies. Having primarily serviced the local market for the past25 years, the company is expanding into the airport market with plans forthe opening of airport locations in the top 30 markets in the United Statesand the major airports in Canada. U-Save currently services 27 airportmarkets in 14 different states. U-Save Car Sales is an expansion of theU-Save brand into the car sales market, and provides goods and services tocar sales operators looking to affiliate with a national brand. Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns therights to the Rent-A-Wreck(R) trademark for all of Canada. TheRent-A-Wreck(R) system operates a network of 50 franchises fromcoast-to-coast in Canada, providing a range of vehicle rental, leasing andsales options to its customers. The Rent-A-Wreck(R) system has been incontinuous operation in Canada since 1976. Forward-Looking Information --------------------------- Certain information included in this press release is of aforward-looking nature. Forward-looking information is subject to known andunknown risks, as well as uncertainties and other factors. Accordingly,actual results may differ materially from those expressed or implied inforward-looking information. Some of the risks, uncertainties and otherfactors affecting FSNA are discussed in our public filings with thesecurities regulatory authorities in Canada. Copies of FSNA's Canadianfilings, including our most recent management information circular, annualinformation form, interim financial statements, material change reports andnews releases, are available online at http://www.sedar.com. Information in thisdocument is presented as of February 29, 2008 and is subject to changeafter this date. However, FSNA disclaims any intention or obligation toupdate or revise any forward-looking statements, whether as a result of newinformation, future events or otherwise. The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
