REX Stores Reports Fiscal 2008 Fourth Quarter and Full Year Results

Fiscal 2008 Fourth Quarter and Full Year Income Statement Review

The table below summarizes net sales and revenue from REX's retail and
alternative energy segments and (loss) income from continuing operations
for the three and twelve month periods ended January 31, 2009 and
January 31, 2008.

(in thousands)                                                    Three Months Ended        Twelve Months Ended
                                                                  January 31,               January 31,
                                                                  2009         2008         2009          2008
                                                                               Unaudited
Net sales and revenue:
Retail segment                                                    $47,640      $61,975      $162,404      $194,787
Alternative energy segment                                        19,755       -            68,223        -
Total net sales and revenues                                      $67,395      $61,975      $230,627      $194,787
(Loss) income from continuing operations
Retail segment                                                    $(3,900 )    $3,459       $1,124        $10,421
Alternative energy segment                                        (5,282  )    3,438        (8,992   )    22,404
Corporate expense                                                 (438    )    (341    )    (2,038   )    (2,077   )
Interest expense                                                  (78     )    (80     )    (387     )    (749     )
Interest income                                                   469          465          1,788         3,575
(Loss) income from synthetic fuel investments                     -            (1,334  )    691           6,945
(Loss) income from continuing operations before income taxes and  (9,229  )    5,607        (7,814   )    40,519
minority interest
Benefit (provision) for income taxes                              3,492        (1,146  )    2,387         (14,967  )
Minority interest                                                 725          839          3,156         841
(Loss) income from continuing operations                          $(5,012 )    $5,300       $(2,271  )    $26,393

The Company's financial results reflect the consolidation of its
investments in two ethanol affiliates, Levelland Hockley County Ethanol,
LLC ("Levelland Hockley") as of September 30, 2006 and One Earth Energy
LLC ("One Earth") as of October 30, 2007.

Stuart Rose, REX Stores' Chairman and Chief Executive Officer, commented
on the Company's year-end financial position, "In addition to our
alternative energy investments and remaining retail assets, REX ended
fiscal 2008 with approximately $90 million of non-restricted cash and
cash equivalents. Approximately $100 million of the long-term debt and
capital lease obligations on the balance sheet are secured by the
ethanol facilities and are non-recourse to REX Stores or its wholly
owned subsidiaries. We are evaluating the best means of deploying our
strong net cash position to enhance shareholder value."

During the fiscal 2008 fourth quarter, the Company entered into an
agreement to lease 37 retail store locations owned by the Company to
subsidiaries of Appliance Direct, Inc. The Company plans to exit the
retail business during the 2009 fiscal year.

In the quarter ended January 31, 2009 REX incurred a loss from
continuing operations of $5.0 million, or $0.53 per diluted share,
inclusive of a pre-tax restructuring charge of approximately $4.2
million related to a workforce reduction of a majority of employees at
its corporate headquarters, retail stores and distribution facilities
and certain costs incurred in the downsizing of the Company's retail
operations and agreement to lease 37 owned retail locations. In the
fourth quarter of fiscal 2007 REX reported income from continuing
operations of $5.3 million, or $0.47 per diluted share.

During the fiscal 2008 fourth quarter the Company incurred $1.1 million
in interest expense compared to $0.07 million of interest expense in the
comparable prior year period. The increase is primarily attributable to
the Company's consolidation of its investments in Levelland Hockley
which prior to going into production capitalized interest expense.
During the fiscal 2008 fourth quarter, the Company recorded $4.3 million
of realized and unrealized pre-tax losses from interest rate derivative
financial instruments held by its consolidated ethanol entities,
Levelland Hockley and One Earth. During the fiscal 2007 fourth quarter
the Company recorded a $2.6 million loss from interest rate derivative
financial instruments held by its consolidated ethanol entities. In the
three months ended January 31, 2009 and 2008 the Company incurred a $2.1
million and $0.5 million pre-tax loss, respectively, related to its
unconsolidated ethanol affiliates, Patriot Renewable Fuels, LLC and Big
River Resources, LLC.

REX recorded a $3.5 million benefit for income taxes in the quarter
ended January 31, 2009 compared with a $1.1 million income tax expense
in the comparable prior year period.

During the quarter ended January 31, 2009 REX recognized a $0.5 million
loss from discontinued operations, net of taxes, and a $0.1 million gain
on disposal of discontinued operations, net of taxes. The Company
recognized a $0.1 million loss from discontinued operations, net of
taxes, and a $0.7 million gain on disposal of discontinued operations,
net of taxes in the year ago period. During fiscal 2008 the Company
closed 25 stores, 23 of which were classified as discontinued operations.

Net loss in the quarter ended January 31, 2009 was $5.4 million, or
$0.57 per diluted share compared with net income of $5.9 million, or
$0.52 per diluted share, in the same period of fiscal 2007. Per share
results are based on 9,516,000 and 11,306,000 diluted weighted average
shares outstanding for the quarters ended January 31, 2009 and January
31, 2008, respectively.

Select Segment Balance Sheet Data

                      Jan. 31, 2009    Jan. 31, 2008
Assets:
Retail                $80,437          $120,711
Alternative energy    249,422          167,070
Corporate             121,429          121,197
Total assets          $451,288         $408,978

REX Stores' Current Ethanol Production Interests

Entity                                      REX's Capital Investment   REX's Ownership Interest   Debt Investment   Production Nameplate             Estimated Plant Completion Date
                                            ($ in millions)                                       ($ in millions)   Capacity (millions of gallons)
Levelland Hockley County Ethanol, LLC (1)   $16.5                      56%                        $5.5              40                               In Production
Patriot Renewable Fuels, LLC                $16.0                      23%                        $1.0              100                              In Production
One Earth Energy, LLC                       $50.8                      74%                        -                 100                              Summer 2009
Big River Resources, LLC-W. Burlington      $20.0                      10%                        -                 92                               In Production
Big River Resources,
LLC-Galva
                                                                                                  -                 100                              Summer 2009
(1) On January 29, 2009, REX (through a wholly-owned subsidiary)
agreed to fund up to $2.0 million in the form of a subordinated
revolving line of credit to Levelland Hockley and to issue a $1.0
million letter of credit for the benefit of Levelland Hockley.

During the fiscal 2008 fourth quarter REX purchased approximately
304,000 shares of its common stock in open market transactions and the
Company repurchased a total of 1,636,000 shares of its common stock in
fiscal 2008. In the fiscal 2009 first quarter to-date, REX purchased
approximately 127,000 shares of its common stock in open market
transactions. The Company has approximately 452,000 authorized shares
remaining available to purchase under the expanded February 2009 stock
buy-back authorization. Reflecting all purchases to-date, REX presently
has approximately 9,290,000 shares of common stock outstanding.

The Company will host a conference call and webcast today at 11:00 a.m.
ET, which are open to the general public. The conference call dial-in
number is 212/231-2920; please call ten minutes in advance to ensure
that you are connected prior to the presentation. Interested parties may
also access the call live via the Investor Relations page of the
Company's website, www.rextv.com,
or at www.earnings.com;
please allow 15 minutes to register, download and install any necessary
software.

Following its completion, a telephonic replay of the call can be
accessed through 1:00 p.m. ET on April 29, 2009 by dialing 800/633-8284
or 402/977-9140 (international callers). The access code for the audio
replay is 21422037. Alternatively, a replay will be available on the
Internet for 30 days at www.rextv.com
or www.earnings.com.

This news announcement contains or may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements can be identified by use of
forward-looking terminology such as "may," "expect," "believe,"
"estimate," "anticipate" or "continue" or the negative thereof or other
variations thereon or comparable terminology. Readers are cautioned that
there are risks and uncertainties that could cause actual events or
results to differ materially from those referred to in such
forward-looking statements. These risks and uncertainties include the
risk factors set forth from time to time in the Company's filings with
the Securities and Exchange Commission and include among other things:
the highly competitive nature of the consumer electronics retailing
industry, changes in the national or regional economies, weather, the
effects of terrorism or acts of war on consumer spending patterns, the
availability of certain products, technological changes, changes in real
estate market conditions, the fluctuating amount of quarterly payments
received by the Company with respect to sales of its partnership
interest in its synthetic fuel investments, and the variability of
income received from time to time from the Company's synthetic fuel
investments. As it relates to ethanol investments, risks and
uncertainties include among other things: the uncertainty of
constructing plants on time and on budget, the price volatility of corn,
sorghum, dried distiller grains, ethanol, gasoline and natural gas, and
the plants operating efficiently and according to forecasts and
projections.

-tables follow-

REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements Of Income
(In Thousands, Except Per Share Amounts)
Unaudited
                                                                      Three Months Ended            Twelve Months
                                                                      January 31,                   Ended January 31,
                                                                         2009        2008*             2009        2008*
Net sales and revenue                                                 $  67,395      $  61,975      $  230,627     $  194,787
Cost of sales (excluding retail segment depreciation)                    52,855         44,831         183,547        136,508
Gross profit                                                             14,540         17,144         47,080         58,279
Selling, general and administrative expenses                             (16,690 )      (15,025 )      (53,796 )      (53,704 )
Interest income                                                          438            939            2,044          5,714
Interest expense                                                         (1,118  )      (72     )      (3,155  )      (165    )
Loss on early termination of debt                                        -              (9      )      (9      )      (565    )
Gains on sale of real estate, net                                        -              188            2,279          1,064
Equity in (loss) income of unconsolidated ethanol affiliates             (2,117  )      (456    )      849            1,601
Realized investment gains, net                                           -              6,833          -              23,951
(Loss) income from synthetic fuel investments                            -              (1,334  )      691            6,945
Losses on derivative financial instruments, net                          (4,282  )      (2,601  )      (3,797  )      (2,601  )
(Loss) income from continuing operations before provision for income     (9,229  )      5,607          (7,814  )      40,519
taxes and minority interest
Benefit (provision) for income taxes                                     3,492          (1,146  )      2,387          (14,967 )
Minority interest in loss of consolidated subsidiaries                   725            839            3,156          841
(Loss) income from continuing operations                                 (5,012  )      5,300          (2,271  )      26,393
Loss from discontinued operations, net of tax                            (502    )      (98     )      (1,359  )      (2,306  )
Gain on disposal of discontinued operations, net of tax                  135            655            333            9,780
Net (loss) income                                                     $  (5,379  )   $  5,857       $  (3,297  )   $  33,867
Weighted average shares outstanding - basic                              9,516          10,154         10,170         10,420
Basic (loss) income per share from continuing operations              $  (0.53   )   $  0.52        $  (0.22   )   $  2.53
Basic loss per share from discontinued operations                        (0.05   )      (0.01   )      (0.13   )      (0.22   )
Basic income per share on disposal of discontinued operations            0.01           0.07           0.03           0.94
Basic net (loss) income per share                                     $  (0.57   )   $  0.58        $  (0.32   )   $  3.25
Weighted average shares outstanding - diluted                            9,516          11,306         10,170         11,721
Diluted (loss) income per share from continuing operations            $  (0.53   )   $  0.47        $  (0.22   )   $  2.25
Diluted loss per share from discontinued operations                      (0.05   )      (0.01   )      (0.13   )      (0.20   )
Diluted income per share on disposal of discontinued operations          0.01           0.06           0.03           0.84
Diluted net (loss) income per share                                   $  (0.57   )   $  0.52        $  (0.32   )   $  2.89

* Amounts differ from those previously reported as a result of certain
stores being reclassified into discontinued operations.

- balance sheet follows -

REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(in thousands)
Unaudited
                                                                    January 31,
ASSETS                                                                  2009               2008
CURRENT ASSETS:
Cash and cash equivalents                                           $   91,991         $   127,716
Accounts receivable-net                                                 4,197              1,877
Inventory - net                                                         24,374             49,933
Refundable income taxes                                                 7,790              1,522
Prepaid expenses and other                                              1,063              1,543
Deferred taxes-net                                                      13,230             10,599
Total current assets                                                    142,645            193,190
Property and equipment-net                                              235,454            136,505
Other assets                                                            12,414             14,803
Goodwill                                                                -                  1,322
Deferred taxes-net                                                      18,697             21,929
Equity method investments                                               38,861             38,748
Investments in debt instruments                                         933                -
Restricted investments                                                  2,284              2,481
TOTAL ASSETS                                                        $   451,288        $   408,978
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt and capital lease obligations -   $   5,898          $   1,790
alternative energy
Current portion of long term debt - other                               1,576              2,311
Accounts payable -trade                                                 25,167             27,253
Deferred income                                                         11,952             14,448
Accrued restructuring charges                                           4,171              -
Deferred gain on sale and leaseback                                     1,558              1,436
Derivative financial instruments                                        1,996              293
Other current liabilities                                               5,951              13,617
Total current liabilities                                               58,269             61,148
LONG TERM LIABILITIES:
Long term debt and capital lease obligations - alternative energy       94,003             22,072
Long term debt - other                                                  9,936              13,152
Deferred income                                                         13,796             17,172
Deferred gain on sale and leaseback                                     3,467              4,493
Derivative financial instruments                                        4,032              2,308
Other                                                                   4,152              4,313
Total long term liabilities                                             129,386            63,510
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES                          24,573             27,729
SHAREHOLDERS' EQUITY:
Common stock, 45,000 shares authorized, 29,853 and 29,813 shares        299                298
issued at par
Paid in capital                                                         142,486            141,357
Retained earnings                                                       282,332            285,629
Treasury stock, 20,471 and 19,094 shares                                (186,057 )         (170,693 )
Total shareholders' equity                                              239,060            256,591
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                          $   451,288        $   408,978

SOURCE: REX Stores Corporation

REX Stores Corporation 
Douglas Bruggeman, 937-276-3931 
Chief Financial Officer 
or 
Jaffoni & Collins Incorporated 
Joseph N. Jaffoni/David Collins, 212-835-8500 
rsc@jcir.com

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