The Major Automotive Companies Reports Retention of Financial Advisor and Counsel by Special Committee

LONG ISLAND CITY, N.Y.--July 16, 2004--

Resignation of Steven Nawi as Director and Election of Alan A. Person as a Director and Chairman of the Audit Committee; Company Regains Compliance with Nasdaq Rules

The Major Automotive Companies, Inc. today reported that the special committee formed for the purpose of evaluating an offer from Bruce Bendell, the Company's Chairman, President, Chief Executive Officer and Acting Chief Financial Officer, has retained the investment banking firm of Bryant Park Capital, Inc. and the law firm of McDonald Carano Wilson LLP as its special Nevada counsel to assist it in assessing Mr. Bendell's proposal.

Furthermore, the Company today reported that, effective July 13, 2004, Steven Nawi resigned as a director of the Company. The Company's Board of Directors has elected Alan A. Pearson to fill the vacancy on the Board of Directors due to Mr. Nawi's resignation. Mr. Pearson will also act as Chairman of the Company's Audit Committee.

Finally, the Company today announced that Nasdaq has notified the Company that it has demonstrated compliance with Nasdaq Marketplace Rules 4350(c) and 4350(d)(2) with respect to the appointment of an independent director and compliance with audit committee requirements. Accordingly, the Company will continue to be listed on The Nasdaq SmallCap Market.

The Major Automotive Companies is a leading automotive dealership group in the New York Metropolitan area. For additional information, visit the Company's website at http://www.majorauto.com/.

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