Electro Rent Corporation is Granted License to Operate China's First

Electro Rent Corporation is Granted License to Operate China's First Wholly Foreign-Owned Equipment Rental and Leasing Business

    Business Editors

    VAN NUYS, Calif.--(BUSINESS WIRE)--May 2, 2005--

Electro Rent (Tianjin) Rental Co., Ltd. Expected to Begin Operating Soon
    Electro Rent Corporation (NASDAQ:ELRC) announced today that it has been awarded what it believes to be the first license for a wholly foreign-owned equipment rental and leasing business in China. With the license awarded by the Tianjin Economic-Technological Development Area (TEDA), Electro Rent (Tianjin) Rental Co., Ltd., will soon commence operations in Tianjin, China.
    Commenting on the eve of a reception for senior representatives of TEDA to be held today in Los Angeles, Electro Rent Chairman and CEO Daniel Greenberg said, "It is a great honor for Electro Rent to be the first company to win a business license under the Ministry of Commerce's new administrative measures on foreign investment in the rental and leasing industry. We greatly appreciate the enthusiastic support of Dr. Pi Qian Sheng, Standing Committee of the Tianjin Municipality and Director General of the Tianjin New Coastal Area Administrative Commission, Ms. Zhao Guo Qing, Bureau Chief of the Commodity Inspection Bureau of the Tianjin Municipality, Mr. Liu Lai Jiu, Vice President of the Tianjin Customs, Mr. Ai Ya Min, Vice Chairman of the TEDA Administrative Commission, Mr. Jia Shou Yue, Bureau Chief of TEDA Trade Development Bureau, and Mr. Yang Zhi Ze, Bureau Chief of TEDA Economic Development Bureau, whose encouragement and guidance were instrumental in the successful completion of the licensing process just five weeks following promulgation of the new procedures."
    Mr. Greenberg continued, "As the global marketplace grows more and more competitive, renting and leasing are increasingly attractive options for our customers to gain the benefits of the most advanced technology solutions at a fraction of the cost of purchasing. In the United States and Canada, Electro Rent has supported our multinational customers' requirements for the rental and leasing of advanced technology equipment for many years. The time is now right to provide this support in China.
    "Located in the heart of one of the most important electronics manufacturing centers in China, our new office is ideally situated to serve major international and Chinese technology companies throughout the country. We currently are hiring salespeople, technicians and administrative personnel, assembling an appropriate equipment pool, and seeking relationships with vendors and customers that will create new opportunities for employees of Electro Rent Tianjin.
    "Our decision to locate in the Tianjin Economic-Technological Development Area reflected more than a year of analysis and careful study of a variety of locations. TEDA is one of the most successful business parks in China, boasting one of Motorola's largest Chinese facilities as well as significant operations of many other prominent international electronics manufacturers. The Chinese equipment rental and leasing business is still in its infancy, so we are excited to have the opportunity to participate in the continued growth of the Chinese market."

    About Electro Rent

    Electro Rent Corporation (www.ElectroRent.com) is one of the world's largest organizations devoted to the short-term rental and leasing of general purpose electronic test equipment, personal computers and servers.

    "Safe Harbor" Statement:

    Except for the historical statements and discussions above, our statements above constitute forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our management's current views with respect to future events and financial performance; however, you should not put undue reliance on these statements. When used, the words "anticipates," "believes," "expects," "intends," "future," and other similar expressions identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. We believe our management's assumptions are reasonable, nonetheless, it is likely that at least some of these assumptions will not come true. Accordingly, our actual results will probably differ from the outcomes contained in any forward-looking statement, and those differences could be material. Factors that could cause or contribute to these differences include, among others, those risks and uncertainties discussed in our periodic reports on Form 10-K and 10-Q and our other filings with the Securities and Exchange Commission. Should one or more of the risks discussed, or any other risks, materialize, or should one or more of our underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, expected or projected. In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward-looking statements.

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CONTACT: Electro Rent Corporation Daniel Greenberg, 818-786-2525 or Investor Contact: Berkman Associates Neil Berkman, 310-277-5162 info@BerkmanAssociates.com

KEYWORD: CALIFORNIA CHINA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: BANKING AEROSPACE/DEFENSE GOVERNMENT PRODUCT MARKETING AGREEMENTS SOURCE: Electro Rent Corporation

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