MBA Holdings Unites with Carr Insurance Agency of Honolulu to Recruit Motorcycle Rental Operators & Grow NMDA Presence in HawaiiSCOTTSDALE, Ariz.--Dec. 1, 20044, 2004--MBA Holdings, Inc. (OTCBB:MBAH) has signed an agency agreement with Carr's Insurance Agency enlisting Carr's as the Hawaiian agent authorized to sell the products of MBA and its subsidiary, the National Motorcycle Dealers Association (NMDA). Carr's is the leading provider of insurance products to motorcycle dealerships in the state of Hawaii. As a leading insurance agency with a strong background in the business of motorcycle dealerships and rental operations, Carr's is the ideal partner to spearhead the NMDA's plans for growth in Hawaii.
Carr's Insurance Agency has the exclusive responsibility to develop the NMDA's Hawaiian membership and grow revenues through the sale of NMDA services. Additionally, Carr's will market and sell MBA Insurance products. Carr's will derive a commission from all sales of NMDA/MBA products and services in Hawaii.
There are currently dozens of independent motorcycle rental operators in Hawaii that serve an established market demand for bike and other sports vehicle rentals among vacationing travelers. The unique nature of the Hawaiian rental market is its relative maturity compared to other locales, yet there remains no unifying structure that organizes the Hawaiian motorcycle and sports vehicle rental market into a cohesive whole. The intent of the NMDA and Carr's is to recruit the hundreds of rental bikes in operation in Hawaii to the Wildside Motorcycle Rentals program.
Due to the competitively priced insurance deals already in place for Wildside, there is already a reasonable expectation that the majority of the motorcycle rental market in Hawaii will be ready to migrate to the superior price structures and profit margins offered by the NMDA and Wildside. Discussions by Carr's to recruit these clients are already underway with the intention of delivering a considerable portion of the existing Hawaiian motorcycle rental market in first quarter 2005.
The participation of well established partner agents like Carr's is further validation of the beneficial economic incentives to be delivered by the NMDA's business model. With NMDA membership growth generating greater economies of scale and driving down wholesale costs on insurance products, quality partners such as Carr's look to ensure superior cost advantages for their clientele while maintaining their competitive edge in the Hawaiian marketplace. Under the terms of the agreement, Carr's priority will be to sell NMDA endorsed products where those products made available to Carr's remain competitively priced.
MBA's previous press release on its partnering acquisition of Blue Sky Motorcycle Rentals discussed the strategic value of a two-tier business model to progressively capture and then grow market share of the motorcycle rental sector. Within this disorganized, yet growing market sector that is yet to fully mature there is a ripe opportunity to unify and organize a wide range of independent rental operators through a cohesive vision and business structure. This strategic goal should begin to show results in the first quarter of 2005 as rental operations switch to NMDA and Wildside to garner immediate savings on rental insurance costs at premiums decisively less expensive than rates offered by the competition. The partnership with Carr's is one more concrete step towards growing the NMDA and establishing a market leading profile for MBA and the NMDA in the motorcycle rental sector.
Carr's Insurance Agency