SOURCE: MBA Holdings, Inc.

August 03, 2005 12:56 ET

MBA Holdings Prepares to Shift Into Higher Gear

SCOTTSDALE, AZ -- (MARKET WIRE) -- August 3, 2005 -- MBA Holdings, Inc. (OTC BB: MBAH), today confirmed that in addition to previously announced acquisitions, the company has identified and is in talks with several potential venture partners. The current wave of negotiations is part of a planned series of early steps geared toward helping create a national network of motorcycle rental dealers while simultaneously helping improve the corporate balance sheet.

Described as the Hertz (Rent-A-Car) of the motorcycle world, MBA Holdings has recently begun adding new products and services to its offerings. The company admits similarities in the business models and also notes exciting potential parallels: Hertz has travel partnerships, loyalty programs and auto sales.

MBA Holdings' CEO, Gaylen Brotherson, stated, "Like our predecessors in the car rental business, we are finding interest in areas that we had not considered in our original business plan such as sales of related vehicle equipment as well as vehicle sales. In our case, we are reviewing an intriguing offer (from a manufacturer) to go into motorcycle production."

The company is pursuing those ventures that work to the benefit of both the corporation and its shareholders. Discussions range from preliminary to advanced stages but no new agreements have been signed since mid-July. Terms of the alliances are being withheld pending definitive agreements between parties.

"There can be no assurance that any particular agreement will be signed," stated Mr. Brotherson, "but judging by our previous successful negotiations, we are confident in our outlook on today's current situations, particularly in the Southeastern United States."

To date, management has focused on smaller deals first before attempting unwieldy growth. It is sensible to properly handle infrastructure first, as a necessary stepping-stone that allows the company to prudently work up to multi-million dollar deals. Smaller deals are significant in that they may also help increase the asset base without over-leveraging the company or unreasonably diluting the stock.

Mr. Brotherson concluded, "Based on our marketing plan, the business climate and other factors, we expect to partner with several profitable enterprises over the next several quarters. We have a number of venture partnerships in the works, mostly by design, partly by circumstance. The more opportunities we explore, the more opportunities are finding us."

"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

    Investor Relations:
    Ron Garner
    (877) 788-1940