Rentrak's Previously Announced Third Quarter Earnings Reduced by $0.02 Per Share to Reflect Reversal of One-Time, Non-Cash Adjustment

PORTLAND, Ore., Feb. 9 /PRNewswire-FirstCall/ -- Rentrak Corp. today filed with the Securities and Exchange Commission an 8-K revising the company's previously announced financial results for its third fiscal quarter ended December 31, 2006.

The company's preliminary third quarter results, announced on February 6, 2007, included a non-cash adjustment that had a one-time effect of reducing selling and administrative expenses by $362,000 and increasing net income, net of tax, by $218,000, or $0.02 per diluted share, for the fiscal quarter.

To determine the appropriate accounting treatment of this non-cash adjustment in accordance with Generally Accepted Accounting Principles (GAAP), management proactively initiated extensive discussions with members of the company's Audit Committee and representatives of the company's independent registered public accounting firm, and received concurrence.

However, on February 8, 2007, the company's independent registered public accounting firm, after additional analysis, reversed their position and recommended a different accounting treatment than originally agreed upon.

Accordingly, the company's interim financial statements for the fiscal quarter ended December 31, 2006, filed today with the Securities and Exchange Commission under cover of Form 10-Q, reflect reversal of the one-time, non- cash adjustment, resulting in basic and diluted earnings per share of $0.08, rather than the $0.10 previously reported on February 6, 2007.

Rentrak Chairman and Chief Executive Officer Paul Rosenbaum noted, "We take very seriously our responsibility to provide investors with timely and accurate financial results in accordance with GAAP. The reversal of this non- cash adjustment had no effect on previously reported revenues or cash flows and management does not believe that there will be any effect on future results of operations, nor any impact on the company's business activities."

The accompanying unaudited condensed consolidated balance sheet at December 31, 2006, and unaudited condensed consolidated income statements for the periods ended December 31, 2006 and 2005, reflect the effects of reversing the adjustment referenced above.

About Rentrak Corporation

Rentrak Corporation, based in Portland, Oregon, is an information management company serving clients in the media, entertainment, retail, advertising and manufacturing industries. The company's Entertainment Essentials(TM) suite of services is redefining media measurement in the digital broadband era. Entertainment Essentials provides customers with near- real-time, actionable insight into performance of content distributed over a wide variety of modern media technologies. Available by license or subscription, each Entertainment Essentials application allows executives to analyze detailed industry-wide and title-specific data to make decisions that enhance the bottom line and provide competitive advantage. For further information, please visit Rentrak's corporate Web site at http://www.rentrak.com/ .

Safe Harbor Statement

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 the company's PPT(R) and information services segments 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 movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers and retain existing customers, the company's success in maintaining its relationships with studios and other product suppliers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's 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, 2006 annual report on Form 10-K and subsequent quarterly reports, 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.

Contacts: Paul Rosenbaum Investors Rentrak Corporation PondelWilkinson Parham Chairman & CEO Ron Parham 503-284-7581 [e-mail]Rentrak Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except per share amounts) December 31, March 31, 2006 2006 (1) Assets (Unaudited) Current Assets: Cash and cash equivalents $7,687 $15,666 Marketable securities 22,102 14,832 Accounts receivable, net of allowances for doubtful accounts of $579 and $461 18,924 18,314 Note receivable 380 -- Advances to program suppliers, net of program supplier reserves of $51 and $32 339 225 Deferred income tax assets 107 110 Other current assets 665 607 Total Current Assets 50,204 49,754 Property and Equipment, net of accumulated depreciation of $5,864 and $5,876 5,200 3,623 Deferred Income Tax Assets 411 312 Other Assets 612 639 Total Assets $56,427 $54,328 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $12,812 $15,493 Taxes payable 198 972 Accrued liabilities 780 532 Deferred rent, current portion 90 -- Accrued compensation 1,172 1,366 Deferred revenue 525 484 Total Current Liabilities 15,577 18,847 Deferred rent, long-term portion 807 -- Notes payable 914 -- Total Liabilities 17,298 18,847 Commitments and Contingencies -- -- Stockholders' Equity: Preferred stock, $0.001 par value; 10,000 shares authorized; none issued -- -- Common stock, $0.001 par value; 30,000 shares authorized; shares issued and outstanding: 10,646 and 10,697 11 11 Capital in excess of par value 47,407 48,069 Accumulated other comprehensive income 103 181 Accumulated deficit (8,392) (12,780) Total Stockholders' Equity 39,129 35,481 Total Liabilities and Stockholders' Equity $56,427 $54,328 (1) Derived from our March 31, 2006 audited consolidated financial statements. Rentrak Corporation and Subsidiaries Condensed Consolidated Income Statements (Unaudited) (In thousands, except per share amounts) For the Three Months For the Nine Months Ended December 31, Ended December 31, 2006 2005 2006 2005 Revenue $26,757 $23,957 $77,741 $65,003 Operating expenses: Cost of sales 19,394 17,014 53,541 45,364 Selling and administrative 6,268 5,454 18,057 15,787 25,662 22,468 71,598 61,151 Income from operations 1,095 1,489 6,143 3,852 Other income (expense): Interest income 420 283 1,115 693 Interest expense (3) -- (5) (2) 417 283 1,110 691 Income before income taxes 1,512 1,772 7,253 4,543 Provision for income taxes 643 646 2,865 1,657 Net income $869 $1,126 $4,388 $2,886 Basic net income per share $0.08 $0.11 $0.41 $0.27 Diluted net income per share $0.08 $0.10 $0.39 $0.26 Shares used in per share calculations: Basic 10,666 10,567 10,639 10,556 Diluted 11,249 11,054 11,179 11,071