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Press release from Marketwire

easyhome Ltd. Announces Increase/Syndication of Credit Facilities to $41.4 Million

Thursday, July 21, 2011

easyhome Ltd. Announces Increase/Syndication of Credit Facilities to $41.4 Million13:25 EDT Thursday, July 21, 2011MISSISSAUGA, ONTARIO--(Marketwire - July 21, 2011) - easyhome Ltd. (TSX:EH) ("easyhome" or the "Company") announced today that it has entered into new Credit Facilities with a syndicate of banks which provides for a $40 million Revolving Operating Facility and also includes related Term and Letter of Credit Facilities for $0.9 million and $0.5 million, respectively. The Revolving Facility matures on July 21, 2013.Canadian dollar loans under the Revolving Facility bear interest at the Lead Lender's prime rate plus 125 bps or plus 175 bps if the Company's total debt to EBITDA ratio equals or exceed 2 times. The Company also has the option to convert the loans to US Base, Bankers Acceptance or LIBOR rates. Currently, the Company's effective interest rate under the Facility is 4.25%The Credit Facilities are fully secured over substantially all assets of easyhome and its subsidiaries, contain certain positive, negative and financial covenants (including a total debt to EBITDA covenant ratio, a fixed charge covenant, a total debt to tangible net worth covenant and a total debt to leased asset covenant), and other usual and customary terms and conditions. Canadian Imperial Bank of Commerce is the Lead Arranger and Lender. The other members of the syndicate are National Bank of Canada and Laurentian Bank of Canada."The new Credit Facilities will allow easyhome to continue growing its leasing and financial services businesses," said Steve Goertz, easyhome's Chief Financial Officer. "We are pleased to continue our relationship with CIBC and look forward to working with our new banking syndicate partners."About easyhomeAs at June 30, 2011, easyhome Ltd. had 258 stores, including 40 franchised/licensed locations. The Company also operated 72 easyfinancial kiosks within existing easyhome stores, one stand-alone easyfinancial location and one national loan office.easyhome Ltd. is Canada's largest merchandise leasing company and the third largest in North America, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. In addition, the Company offers a variety of financial services, including loans, prepaid cards and cheque cashing through its easyfinancial services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.FOR FURTHER INFORMATION PLEASE CONTACT: David Ingrameasyhome Ltd.President & Chief Executive Officer(905) 272-2788ORSteve Goertzeasyhome Ltd.Senior Vice President and Chief Financial Officer(905) 272-2788www.easyhome.ca