The Major Automotive Companies Announces Receipt of Nasdaq Letter of Non-compliance and Possible Delisting

LONG ISLAND CITY, N.Y.--May 1, 20048, 2004--The Major Automotive Companies, Inc. (Nasdaq SC: MAJR - news) today announced that the Company has received a letter from Nasdaq indicating that the Company is not in compliance with Nasdaq Marketplace Rules 4350A(c) and 4350A(d)(2) (the "Rules"), relating to independent director and audit committee requirements, respectively, for continued listing on The Nasdaq SmallCap Market.

The letter indicates that the Nasdaq Staff is reviewing the Company's eligibility for continued listing on The Nasdaq SmallCap Market. To facilitate this review, Nasdaq has requested the Company to provide, by June 1, 2004, the Company's specific plan and timetable to achieve compliance with the Rules. If, after reviewing such information, the Nasdaq Staff determines that the plan does not adequately address the issues noted, the Company will receive notification that its securities will be delisted. At that time, the Company may appeal the Nasdaq Staff's determination to a Listing Qualifications Panel.

The Company is currently evaluating all of its alternatives.

The Major Automotive Companies is a holding company for the Major Automotive Group, a leading consolidator of automobile dealerships in the New York metropolitan area.

For additional information, visit the Company's website at http://www.majorworld.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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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.