RIFCO INC.

RIFCO INC.

February 28, 2005 11:59 ET

RIFCO INC. Reports Nine Month Revenue up by 105%


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RIFCO INC.

TSX VENTURE SYMBOL: RFC

FEBRUARY 28, 2005 - 11:59 ET

RIFCO INC. Reports Nine Month Revenue up by 105%

RED DEER, ALBERTA--(CCNMatthews - Feb. 28, 2005) - RIFCO INC. (TSX
VENTURE:RFC) today reported its unaudited financial and operating
results for the three and nine months ended December 31, 2004. With
revenue increasing 105% for the nine months; the Company is enjoying
strong growth.

Revenue for the third quarter grew to $772,619 to achieve a revenue
increase of 12% over the prior quarter.

Loan originations increased to $2.66 million from $1.18 million in the
third quarter of 2003. This represents a 125% increase.

RIFCO is reporting a loss before income taxes of $107,617, compared to
the $114,831 loss reported at December 31, 2003. Credit performance is
on track and loan losses remain under the year-to-date write off targets
of 5.0% with a year to date annualized write off rate of 4.3%.

RIFCO continues to reach new milestones as it grows in size and
efficiency:

- Total Assets increased to $8.56 Million a 128% increase over December
31, 2003

- Average Annualized Interest earned on loan portfolio was 25.1%

- Annualized Interest cost of Loan Receivables was 6.9%

- Total arrears over 30 days are within target at 3.72%

- For the nine month year over year Gross Profit revenue increased by
115% while operating expenses increased by only 61%

- For the nine month year over year Net Losses before taxes as a
percentage of revenue reduced to 11.2% from 20.5%

- RIFCO is reporting an "Operating Profit" for the year of $33,425

The "Operating Profit" represents the Net Income before Tax without the
inclusion of non-cash items such as Provision for Credit Losses (after
actual Write-offs), stock based compensation, amortization, debt-raising
amortization, deferred lease inducements and accrued interest.

RIFCO has also shown growth in its automotive repair, commercial repair
and vehicle dealer network with an increase to 1,424 compared to 1,100
locations as of March 31, 2004.

The entire quarterly report can be viewed at www.rifco.net and
www.sedar.com

About RIFCO Inc.

RIFCO Inc. (TSXV: RFC) operates through its wholly owned subsidiary
Repair Industry Finance Corporation. RIFCO is a specialty consumer
finance corporation with a focus on the automotive aftermarket industry.
RIFCO provides Automotive & Commercial Repair Financing, and Vehicle
Purchase Financing ("Convenient Payment Plan") to mid-market motorists
through a growing network of licensed repair facilities and select used
vehicle retailers. RIFCO's customers benefit by being able to convert
major repair or purchase costs into affordable monthly payments.

RIFCO is committed to growth. Key strategies for achieving this growth
include the expansion of its network, ever-increasing leverage of this
network, excellence in credit and collections processes, and exceptional
service to its network members and its customers.

The common shares of RIFCO INC. are traded on the TSX Venture Exchange
under the symbol "RFC". RIFCO INC. has 13.82 million shares outstanding.

NOTE: RFC would like to remind shareholders and interested parties that
regular commentary on the Company's activities is available by
registering for the Free Insight Newsletter, issued electronically by of
The Howard Group, www.howardgroupinc.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RIFCO INC.
    Lance A. Kadatz
    Vice President and Chief Financial Officer
    1-888-303-2001
    1-888-303-2181 (FAX)
    Email: kadatz@rifco.net
    Website: www.rifco.net
    or
    The Howard Group Inc.
    Grant Howard / David Gordon / Peter Weichler
    1-888-221-0915
    1-888-237-8387 (FAX)
    Email: info@howardgroupinc.com
    Website: www.howardgroupinc.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.