Recreation USA Receives Additional Private Equity Infusion

FT. LAUDERDALE, Fla., Jan. 24 -- Holiday RV Superstores, Inc. a recreational vehicle dealership chain doing business as Recreation USA, today announced that it has received an additional $500,000 as part of its previously announced private equity offering.

This brings the total to $2.0 million in a planned offering of up to $3.5 million through the sale of units consisting of convertible preferred stock and warrants. The proceeds of the private placement are being used for working capital and general corporate purposes.

The private placement is for up to $3.5 million in gross proceeds. The Series A Preferred Stock is being issued in two sub-series and the warrants are not presently exercisable pending the approval of the convertability and voting rights of one of the sub-series of the Series A Preferred Stock and of the exercisability of the warrants.

Recreation USA anticipates that a majority of its stockholders will provide the necessary approval promptly and that following the distribution of an information statement to all stockholders the conversion, voting and exercise features of the securities will be uniform. If Recreation USA's stockholders approve the conversion terms, each share of Series A Preferred Stock will be convertible into shares of common stock at an initial conversion price of $0.50 per share, for a total of 7 million shares, if all of the units are sold. The shares of Sub-Series A-1 Preferred stock issued at the initial closing are initially convertible into 754,800 shares of common stock.

About Recreation USA: Recreation USA operates retail stores in California, Florida, Kentucky, New Mexico, South Carolina, Virginia and West Virginia. Recreation USA, the nation's only publicly traded national retailer of recreational vehicles and boats, sells, services and finances more than 90 RV and 13 boat brands. The Company also markets its offerings through its Internet site at www.RecUSA.com .