SCOTTSDALE, AZ - RSC Holdings Inc. announces first quarter 2008 rental revenues of $372.3 million, up 7.0% from $348.0 million in last year's first quarter and representing 88% of total revenues.

Same store rental revenue growth was 4.6% for the quarter and rental rates were 0.4% lower on a year-over-year basis. Sales of used equipment were $31.4 million, down from $37.8 million in the 2007 first quarter, as the company deliberately slowed this sales activity to reduce capital expenditures in the current market environment and take advantage of its young fleet, which averaged 28 months at the end of the quarter. Utilization of fleet was 68.6% in the quarter compared to 70.3% in the year ago period as the company held its fleet for the seasonal upturn. Sales of merchandise were $18.4 million compared to $20.6 million in the prior year. Total revenues were $422.1 million, up 3.9% from the $406.3 million reported for the comparable year-ago period.

In the first quarter, RSC continued its warm start expansion program by opening five new locations, bringing the total number of RSC locations to 478.

First quarter operating income decreased 6.3% to $91.4 million, or 21.6% of total revenues, from $97.5 million, or 24.0% of total revenues in the same period last year which reflects increased fleet depreciation, rising fuel costs, sales force expansion and the additional costs of being a public entity. The company expects the margin impact from these costs to lessen as the year progresses and utilization increases seasonally. Adjusted EBITDA increased 1.8% to $182.7 million in the first quarter compared to $179.4 million in the prior year, and adjusted EBITDA margin decreased to 43.3% compared to 44.1% in the same quarter 2007.

Interest expense was $55.4 million in the first quarter, a decrease of $8.8 million over the comparable period last year due to lower debt and lower interest rates. Net income was $22.3 million, or $0.22 per diluted share. In the 2007 first quarter, net income was $20.2 million, or $0.22 per diluted share. Net capital expenditures for the first quarter were $52.3 million down 21.2% from the prior year.