Aaron’s, Inc.

Announces Fourth Quarter and Year End Results

ATLANTA, February 9, 2012 – Aaron’s, Inc. (NYSE: AAN), the nation’s leader in the sales and lease ownership and specialty retailing of residential furniture, consumer electronics, home appliances and accessories, today announced results for the three months and year ended December 31, 2011.

For the fourth quarter of 2011, revenues increased 8% to $523.5 million compared to $484.4 million for the fourth quarter in 2010. Net earnings decreased 1% to $30.5 million versus $30.8 million last year. Diluted earnings per share were $.40 compared to $.38 a year ago, a 5% increase.

For the year ended December 31, 2011, revenues increased 8% to $2.024 billion compared to $1.877 billion for 2010. Net earnings decreased 4% to $113.8 million versus $118.4 million a year ago. Diluted earnings per share were down 1% to $1.43 for 2011 compared to $1.44 in 2010.

During the fourth quarter of 2011 the Company recorded a $3.5 million, or $.03 per diluted share, charge to earnings for separation costs primarily related to the accelerated vesting of restricted stock units and stock options previously granted to its former Chief Executive Officer. Diluted earnings per share for the fourth quarter and 2011 year excluding this charge would have been $.43 and $1.46, respectively. Additionally, as previously reported, the Company recorded a lawsuit-related charge in the second quarter of 2011 of $36.5 million. On January 13, 2012, the court ruled not to sustain the verdict previously reported, although it did not indicate what action it would take, including whether it would order a new trial or reduce the jury’s damages award.  We are awaiting additional developments in the lawsuit, which could affect the litigation expense accrual. Excluding the fourth quarter separation-related charge and the second quarter lawsuit-related charge, net earnings for 2011 would have been $138.6 million, up 17% over the same period in 2010, and diluted earnings per share excluding the two charges would have been $1.75, a 22% increase over the same period in 2010.

“Excluding the aforementioned $.03 diluted per share charge, our results for the fourth quarter and year were within our guidance,” said Ronald W. Allen, interim President and Chief Executive Officer of Aaron’s. “We had good revenue and customer growth during the quarter, and believe the results were outstanding in these challenging economic times. Our market remains large, and the high-quality, affordable basic home furnishings we provide fulfills the desires and needs of our customers.”

“We continued to expand our HomeSmart weekly rental business during the quarter and had 71 HomeSmart stores open at the end of the year. Revenues of the HomeSmart stores grew to $8.6 million for the fourth quarter and $15.4 million for the year; however, the start-up expenses associated with opening these stores negatively affected earnings during the quarter by $.03 per diluted share and $.06 per diluted share for the year. We continue to be very optimistic about the future prospects for HomeSmart, but as previously stated, do not plan to open a significant number of additional HomeSmart stores until the earnings and return on investment potential of this concept are thoroughly evaluated,” Mr. Allen added.

Same store revenues (revenues earned in Company-operated stores open for the entirety of both periods) increased 3.7% during the fourth quarter of 2011 compared to the fourth quarter of 2010. Same store revenues also increased 2.1% for Company-operated stores open for over two years at the end of 2011. The Company had 1,015,000 customers at the end of the year, an 11% increase over the number at the end of 2010. The customer count on a same store basis for Company-operated stores was up 6.4% in the fourth quarter compared to the same quarter last year.

During the year the Company generated $307 million of cash flow from operations and had $176.3 million of cash on hand at the end of December 2011.

The Company repurchased 5,075,675 shares of its Common Stock in 2011 representing a total cash outlay of $127.2 million. The Company has authorization to acquire an additional 5,281,344 shares of Common Stock.

Division Results

Revenues in the Aaron’s Sales & Lease Ownership division excluding HomeSmart stores increased in the fourth quarter to $511.5 million, a 6% increase over the $481.7 million in revenues in the fourth quarter of 2010. For the year, Aaron’s Sales & Lease Ownership revenues were $1.999 billion, a 7% increase over the $1.861 billion recorded last year.

The revenues of the Aaron’s Office Furniture division, of which there is one remaining store liquidating merchandise, were $720,000 and $1.6 million in the fourth quarter of 2011 and 2010, respectively. Aaron’s Office Furniture experienced a $105,000 pre-tax profit in the fourth quarter of 2011 and a $495,000 pre-tax loss in the fourth quarter of 2010. For the year, revenues of the Aaron’s Office Furniture division were $3.7 million compared to $11.6 million for the same period of 2010, and pre-tax profits were $597,000 in 2011 versus a pre-tax loss of $11.6 million in 2010. Included in the 2010 fourth quarter and year-to-date losses are charges related to closing this division.

Components of Revenue

Consolidated lease revenues and fees increased 8% for both the fourth quarter and the year 2011 compared to the same prior year periods. In addition, franchise royalties and fees increased 2% in the fourth quarter and 7% for the year compared to the same periods last year. Non-retail sales, which are primarily sales of lease merchandise to Aaron’s Sales & Lease Ownership franchisees, increased 9% for the quarter compared to the fourth quarter last year and 7% for the year. The increases in the Company’s franchise royalties and fees and non-retail sales are the result of an increase in revenues of the Company’s franchisees, who collectively had revenues of $225.6 million during the fourth quarter and $908.9 million for the year, 5% and 8% increases over the comparable respective 2010 periods. For the fourth quarter of 2011 compared to the same quarter a year ago, same store revenue growth for franchised stores was basically flat, being down 0.1%; however, same store customer counts were up 4.6%. Our franchised stores had 552,000 customers at the end of the year, a 10% increase over the number at the end of 2010. Revenues and customers of franchisees, however, are not revenues and customers of Aaron’s, Inc.

The Company’s other revenues in the fourth quarters of 2011 and 2010 included $306,000 and $335,000 of gains, respectively, from the sales of Company-operated stores. Other revenues for the fiscal year included gains from the sales of stores of $3.0 million in 2011 and $1.9 million in 2010.

Store Count

During the fourth quarter of 2011, the Company opened 16 Company-operated Aaron’s Sales & Lease Ownership stores, 18 franchised stores, eight HomeSmart stores, and three RIMCO stores. The Company also acquired four stores from franchisees, seven stores were acquired from a third party operator and converted to HomeSmart stores, and one Company-operated store was sold to a franchisee. In addition, during the quarter the Company closed ten Company-operated stores and one franchised store.

For the 2011 year, the Company opened 51 Company-operated Aaron’s Sales & Lease Ownership stores, 55 franchised stores, 24 HomeSmart stores and six RIMCO stores. In addition, during the year 44 stores were acquired from third party operators and were converted to HomeSmart stores along with one Aaron’s Company-operated store. Aaron’s total net store count increased 7% for the year.

During the fourth quarter and fiscal year of 2011, the Company awarded area development agreements to open 17 and 68 additional franchised stores, respectively. At the end of December 2011, area development agreements were outstanding for the opening of 230 franchised stores over the next several years.

At December 31, 2011, the Company had 1,144 Company-operated Aaron’s Sales & Lease Ownership stores, 707 Aaron’s Sales & Lease Ownership franchised stores, 71 HomeSmart stores, 16 Company-operated RIMCO stores, and six franchised RIMCO stores. The Company also had one Aaron’s Office Furniture store. The total number of stores open at the end of 2011 was 1,945.

First Quarter and Full Year 2012 Outlook

The Company is updating its guidance for 2012 and expects to achieve the following at this time:

Conference Call

Aaron’s will hold a conference call to discuss its quarterly financial results on Friday, February 10, 2012, at 10:00 a.m. Eastern Standard Time. The public is invited to listen to the conference call by webcast accessible through the Company’s website, www.aaronsinc.com, in the “Investor Relations” section. The webcast will be archived for playback at that same site.

Aaron’s, Inc., based in Atlanta, currently has more than 1,945 Company-operated and franchised stores in 48 states and Canada. The Company’s Woodhaven Furniture Industries division manufactured approximately $86 million, at cost, of furniture and bedding at 14 facilities in eight states in 2011. The entire production of Woodhaven is for shipment to Aaron’s stores.