MAII Holdings' Car Rental Direct Subsidiary Enters Into Agreement to Acquire the Assets of a Discount Rent-a-Car Franchisee in Phoenix, Arizona

    LOS ANGELES--May 6, 2002--Car Rental Direct, Inc. (CRD), the fast growing automobile rental subsidiary of MAII Holdings, Inc. (OTCBB:MAII), announced that it has entered into an agreement to acquire substantially all of the operating assets of a Discount Rent-a-Car franchisee in the greater Phoenix/Scottsdale area. The closing is subject to the obtaining of certain consents and assignments and other standard conditions. There can be no assurances that the closing of this transaction will occur.
    The Assets include a fleet of approximately 700 cars and the leases and operating assets of 9 sales locations totaling approximately $6 million in annualized revenue. The purchase price is approximately $1,200,000 of assumed obligations plus the assumption of approximately $6 million in fleet liabilities, which will be part of our expanded credit line with Ford Motor Credit.
    "CRD currently has four (4) locations and approximately 250 vehicles in the greater Phoenix market. This acquisition will add approximately 30% to CRD's overall fleet size and locations and will take us to approximately 2,200 vehicles overall in the southern California, Las Vegas and Phoenix markets. Discount's operating footprint in Phoenix is very complimentary to ours and provides us additional relationships and competencies that we were seeking for our operations in the Phoenix/Scottsdale markets," said Chris Tyler, CEO and Chairman of MAII Holdings and its subsidiary, CRD. Mr. Tyler continued, "This acquisition will give us complete coverage of the greater Phoenix area and the critical mass to operate in the market profitably and efficiently."

    About MAII Holdings, Inc.

    A management team leads MAII HOLDINGS, INC. with expertise in mergers and acquisitions and business development. The Company's focus is in the growth and management of specialized early stage technology driven companies that serve consumer and business-to-business markets. A wholly owned subsidiary, Car Rental Direct, is emerging as a leader in the replacement segment of the automobile rental industry, providing vehicles for businesses and consumers via short- and long-term rental contracts.

    The Private Securities Litigation reform act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by MAII Holdings, Inc.) contains statements and other matters that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements made by MAII Holdings, Inc. For a description of additional risks and uncertainties, please refer to the MAII Holdings, Inc. filings with the Securities and Exchange Commission, including MAII Holdings, Inc.'s Form 10-k.