The Major Automotive Companies Reports First Half Results

LONG ISLAND CITY, N.Y.--Aug. 2, 20043, 2004--The Major Automotive Companies, Inc. today reported its results for the first half of 2004.

Revenues for the first six months of the year ended June 30, 2004 declined to $188,794,842 from $190,018,727 for the comparable 2003 period. Gross profits for the first half of 2004 increased to $31,103,564 from $30,604,951 for the corresponding 2003 period. Net income for the six months ended June 30, 2004 was $1,055,238, or $.11 per diluted share, versus $123,116, or $.01 per diluted share, for the six months ended June 30, 2003. The average number of shares used in the computation in the 2004 period was 9,488,410, compared with 9,401,284 shares in the corresponding prior period.

For the quarter ended June 30, 2004, revenues were $103,923,036 compared with $98,872,736 for the quarter ended June 30, 2003. Gross profits for the current quarter were $16,989,685 compared with $16,075,069 for the second quarter in 2003. Net income was $1,243,236, or $0.13 per diluted share, for the quarter ended June 30, 2004 versus net income of $600,344, or $0.06 per diluted share, for the comparable quarter in the prior year. The average number of shares used in the computations was 9,489,505 and 9,458,704 in the 2004 and 2003 quarters, respectively.

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

For additional information, visit the Company's website at http://www.majorworld.com/

        THE MAJOR AUTOMOTIVE COMPANIES, INC. AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                             (Unaudited)

                         For the                    For the
                Six Months Ended June 30,  Three Months Ended June 30,
               --------------------------- --------------------------
                    2004          2003          2004         2003
                ------------  ------------  ------------  -----------


Sales          $188,794,842  $190,018,727  $103,923,036  $98,872,736
Cost of sales   157,691,278   159,413,776    86,933,351   82,797,667
                ------------  ------------  ------------  -----------
  Gross profit   31,103,564    30,604,951    16,989,685   16,075,069

Operating
 expenses        29,614,439    30,059,435    15,400,324   15,231,911
Interest
 expense, net
 of interest
 income             373,672       395,400       185,499      235,814
                ------------  ------------  ------------  -----------


  Income before
   income taxes   1,115,453       150,116     1,403,862      607,344

Income tax
 expense             60,215        27,000       160,627        7,000
                ------------  ------------  ------------  -----------

Net income     $  1,055,238  $    123,116  $  1,243,235  $   600,344
                ============  ============  ============  ===========

Net income per
 common share:
     Basic     $       0.11  $       0.01  $       0.13  $      0.06
     Diluted   $       0.11  $       0.01  $       0.13  $      0.06
                ============  ============  ============  ===========

Average number of shares
 used in computation:
     Basic        9,480,889     9,398,454     9,486,922    9,455,220
     Diluted      9,488,410     9,401,284     9,489,505    9,458,704
                ============  ============  ============  ===========