The Major Automotive Companies Announces Credit Commitment with GMAC; Two Dealerships to Be Sold

    LONG ISLAND CITY, N.Y.--Feb. 28, 2002--The Major Automotive Companies, Inc. announced today that it has signed a commitment letter with General Motors Acceptance Corporation ("GMAC") for GMAC to provide the floor plan credit for the financing of the Company's Chevrolet dealership's new and used vehicle inventory.
    This is the flagship dealership of the Company's operations and accounted for more than 35% of the Company's new vehicle revenues and more than 80% of its consolidated used vehicle revenues in the year 2001. This floor plan credit line replaces the Company's previous floor plan line with DaimlerChrysler Services North America LLC. Such commitment is subject to normal closing conditions.
    Because the GMAC commitment will not cover floor plan financing for non-General Motors new vehicles, the Company entered into a letter of intent for the sale of its Major Chrysler, Jeep and Dodge franchises to a group led by an employee of the Company. The aggregate sales price is $1,250,000, subject to certain purchase price adjustments. Vehicle sales of these Chrysler franchises represent approximately 10% of the Company's overall revenues.
    Bruce Bendell, Chairman of the Company, noted, "We are pleased to be re-associated with GMAC. We believe that this floor plan arrangement will provide us with increased funds and greater flexibility toward achieving our growth and profitability goals. We look forward to a long and fruitful relationship with GMAC."
    The Major Automotive Companies is a leading consolidator of automotive dealerships in the New York Metropolitan area. For additional information, visit the Company's website at http://www.majorauto.com/.

    The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.