The Major Automotive Companies Reports First Quarter Results For 2004

LONG ISLAND CITY, N.Y.--May 2, 20044, 2004--The Major Automotive Companies, Inc. (Nasdaq SC: MAJR - news) today reported its results for the quarter ended March 31, 2004.

Revenues, at $84,871,806 for the quarter ended March 31, 2004, decreased sharply from the 2003 year's first quarter revenues of $91,145,991. Gross profits for the 2004 first quarter declined to $14,113,879 from $14,529,882 for the comparable 2003 quarter. Pre-tax loss was $288,409 in the first quarter of 2004, compared with pre-tax loss of $457,228 in the prior year's first quarter.

Net loss was $187,997, or $.02 per diluted share, in the first quarter of 2004, compared with net loss of $477,228, or $.05 per diluted share, for the first quarter of 2003.

The average number of shares used in the computations of diluted earnings per share was 9,474,856 and 9,341,058 in the 2004 and 2003 quarters, respectively.

Bruce Bendell, President, Chief Executive Officer and Acting Chief Financial Officer of The Major Automotive Companies, Inc., said, "We believe that the results in the first quarter of 2004 provide evidence that our strategies of closing unprofitable dealerships and reducing overhead costs are starting to be felt. For example, although our revenues in the quarter declined by approximately $6 million, our gross profits had a decrease of only $400,000. Similarly, because of our focus on reducing unnecessary spending, even though our floor plan interest increased during the quarter, our total operating expenses decreased. This resulted in a decline in our pre-tax loss of almost $200,000. We expect that, as we enter into our traditionally strong selling season, the prudent cost-cutting steps we have taken to date, will help us to reach our financial goals."

        THE MAJOR AUTOMOTIVE COMPANIES, INC. AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED MARCH 31,
                             (Unaudited)

                                                    2004         2003
                                              -----------  -----------

Sales                                        $84,871,806  $91,145,991
Cost of sales                                 70,757,927   76,616,109
                                              -----------  -----------
  Gross profit                                14,113,879   14,529,882

Operating expenses                            14,214,115   14,686,285
Interest expense, net of interest income         188,173      300,825
                                              -----------  -----------

  Loss before income taxes                      (288,409)    (457,228)

Income tax benefit  (expense)                    100,412      (20,000)
                                              -----------  -----------

Net loss                                     $  (187,997) $  (477,228)
                                              ===========  ===========



Net loss per common share:
     Basic                                   $     (0.02) $     (0.05)
     Diluted                                 $     (0.02) $     (0.05)
                                              ===========  ===========

Average number of shares used in computation:
     Basic                                     9,474,856    9,341,058
     Diluted                                   9,474,856    9,341,058
                                              ===========  ===========