SOURCE: M.B.A. Holdings, Inc.

August 29, 2005 09:00 ET

MBA Holdings, Inc. Signs Contract With HMO4CARS

MBA Will Serve as Exclusive Marketer for HMO's Service Programs

SCOTTSDALE, AZ -- (MARKET WIRE) -- August 29, 2005 -- MBA Holdings, Inc. (OTC BB: MBAH) today announced that it has signed a contract with HMO4CARS under which it will serve as exclusive marketer to dealers nationwide who will sell prepaid service programs for cars, RVs and motorcycles (HMO4CARS, HMO4RVS and HMO4MOTORCYCLES). Due to terms of the agreement, sales projections have not yet been disclosed, but the programs are expected to provide significant revenues for both companies over the next years.

MBA Holdings will market the HMO4CARS program directly through Auto, Motorcycle and RV Dealers, Credit Unions and other Financial Institutions, also via the web to Consumers and through nationwide agents that represent Dealers, Credit Unions and Banks.

MBA will receive fees per plan sold. In addition, MBA will receive 2.5% ownership of the company based on $12M valuation (300,000 shares of common stock) plus 5% of the net profit at years end. The company can receive up to 12 1/2% percent ownership and net profits, based on sales and a graduated scale.

HMO4CARS services of prepaid scheduled maintenance programs to new and used vehicle purchasers, and existing vehicle owners covering scheduled maintenance as recommended by the manufacturer as described in the individual contracts and reserved with the insurance company under that contract.

The exclusive agreement with the auto dealers gives MBA many advantages. Gaylen Brotherson, CEO of MBA Holdings, Inc., stated, "I like it, this product and contract gives our company ability to assign non-competing territories in each region in the United States. This permits us, as a small business, to handle thousands of nationwide leads and territories without becoming overwhelmed and expose our other programs to additional dealers, like our vehicle service contracts, gap, credit life and tire/wheel coverage."

Typical prepaid services may include: change engine oil & filter; check and top off fluids (coolant, power steering fluid, transmission fluid, windshield washer fluid, brake fluid level); check tire pressure; inspect battery and connections; inspect brake system; inspect cv joint boots; inspect fuel lines & hoses; inspect lamps & warning devices; inspect neutral safety & BTSI operation; inspect parking brake; inspect parking brake cable; inspect power steering system; inspect suspension; inspect windshield wipers; lubricate brake cable guides; lubricate hood & door hinges; rotate tires & adjust pressure.

About MBA Holdings, Inc.

M.B.A. Holdings, Inc., through its wholly owned subsidiary, Mechanical Breakdown Administrators, Inc., markets and administers vehicular mechanical breakdown insurance policies on automobiles, light trucks, recreational vehicles, motorcycles, and certain automotive components and sells contracts for repair services to vehicles and certain vehicle components. Its second subsidiary, National Motorcycle Dealers Association, LLC ("NMDA"), sells memberships in NMDA and extended warranties for new and used motorcycles, ATV's and trailers. NMDA also provides and/or plans to provide Gap Coverage, Motorcycle Leasing and Financing, Credit Life/Accident insurance, Health insurance and Family Hospitalization insurance for Dealership owners, employees and their families. Please visit the corporate website at www.mbadirect.com.

About HMO4CARS

The HMO4CARS network includes thousands of nationally recognized service centers throughout the U.S. The program helps ease the burden of maintaining your car by helping you understand the services that should be performed and when they need to be completed. HMO4CARS is easy to use. Simply present your HMO4CARS card to your service provider, and the preventative maintenance for which your vehicle has been scheduled is authorized via toll-free phone. Your HMO4CARS plan covers the preauthorized service performed with no out of pocket cost to you.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to business conditions and the amount of growth in the insurance or associated automotive industries and general economy, competitive factors, and other risks detailed from time to time in the company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q. The company does not undertake any obligation to update forward-looking statements.

Contact Information

  • For additional information contact:

    MBA Holdings
    http://www.mbadirect.com

    For Investor Relations contact:

    Equitilink LLC
    Ron Garner
    877-788-1940