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

    LOS ANGELES--Aug. 29, 2002--Car Rental Direct, Inc. (OTCBB:CRDH), the fast growing automobile rental subsidiary of MAII Holdings, Inc. (OTCBB:MAII), announced that it has terminated an agreement entered into in May 2002 to acquire substantially all of the operating assets of a Discount Rent-A-Car franchisee located in the greater Phoenix/Scottsdale area, as previously announced. The closing was subject to the obtaining of certain consents and assignments and other standard conditions, which were not met.
    "We have not been able to obtain the necessary assignments and consents from certain creditors to complete this transaction, and in addition, during our diligence review we have discovered new liabilities that we are not willing to assume," said Chris Tyler, CEO and Chairman of MAII Holdings and Car Rental Direct. Mr. Tyler continued, "Our business is currently performing very well and we are going to be disciplined about entering into extraordinary transactions and limiting any new liabilities. It just did not make sense for us to close this transaction. However, we intend to grow our presence in Phoenix/Scottsdale through the opening and/or acquisition of additional locations."

    About MAII Holdings, Inc. & Car Rental Direct 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, Inc., 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.