MBA Holdings Provides Progress Report on NMDA Plans and Goals for 2005

SCOTTSDALE, Ariz.--Dec. 15, 2004--During the fourth quarter of 2004, MBA Holdings Inc. (OTCBB: MBAH) has taken major strides toward implementing its vision of making its subsidiary, the National Motorcycle Dealers Association (NMDA), into the leading full-service organization dedicated to delivering premium products and services for its membership in the motorcycle industry. MBA has continued to operate its traditional core business of selling insurance and warranty products, while the NMDA is prepared to add to the company's revenues in 2005.

The formation and development of the NMDA has required numerous negotiations that have resulted in the participation of a sizable and growing list of partners and affiliates committed to the growth and success of the NMDA. The involvement of the quality companies enlisted to provide products and services to the NMDA membership already shows the powerful appeal of gaining access to a sizeable and growing customer base of a comprehensive industry association. The NMDA will continue to leverage for the benefit of its members the wholesale pricing opportunities to be gained from an expanding motorcycle dealer, industry and service organization network.

We have taken definite steps towards achieving greater cash flow and generating for MBAH shareholders positive earnings per share in FY 2005. For MBA's core traditional insurance and warranty business, we have continued to seek out new product opportunities and sales channels that are separate from the subsidiary income to be derived from the NMDA. As the marketing effectiveness of the NMDA itself grows, it will not only produce greater sales opportunities for the NMDA and its program providers, but for MBA products as well. In the past month alone, while incurring the costs inherent to bringing the NMDA into operation and effecting a key acquisition, MBA has reduced internal cost factors that will cut its annual operating expenditures by over a quarter million dollars.

MBA recently announced the acquisition of a 50% ownership stake in Blue Sky Motorcycle Rentals which delivers an immediate and profitable income source to MBA's bottom line. The minimum projection for Blue Sky is to add up to a quarter million dollars in net profits as MBA's share of income in FY 2005. However, the expansion plans for Blue Sky are targeted to yield greater potential gains in FY 2005.

In tandem with the acquisition of Blue Sky, the NMDA is moving forward to gain a second strong revenue source from the motorcycle rental market with its offering of rental program services through Wildside Rentals. The recently announced initiative with Carr's Insurance Agency to capture a considerable portion of the Hawaiian rental bike market is just the first of many efforts to unify and consolidate a diversified independent motorcycle rental operator market under a single roof.

The Wildside business model both offers a considerably better deal on insurance for existing rental operators while being capable of generating a consistently profitable recurring revenue stream for Wildside and the NMDA. Our market analysis shows healthy margins are attainable with hundreds of rental motorcycles in operation. The target for calendar year FY 2005 of having 1,000 rental bikes under contract, exclusive of those operating through Blue Sky, remains a key element to the NMDA's market strategy. The goal of growing Blue Sky and Wildside together is fully intended to achieve market leadership in the motorcycle rental sector in the United States, then Canada and other countries. As this market penetration is achieved, the lucrative potential to expand rental operations to include other sport vehicles, some of which are already included within current rental setups, will be included in the scope of business for Blue Sky and Wildside.

The NMDA's overall business model remains a multi-pronged effort to effectively balance membership interests with the potential revenue streams to be derived by the NMDA. Some partnerships lend prestige and program offerings desired by our membership while others are more prominent in the size of their direct profit potential for the NMDA. This balance of interests on behalf of the NMDA's members is part of our implicit goal to deliver the finest products and services offered anywhere under one roof. Besides ensuring the continued satisfaction and loyalty of our membership, this approach also guarantees the ongoing opportunity to deliver an unmatched range of programs where the cost benefits continue to accrue for our membership while generating additional income opportunities for the NMDA. As NMDA operations mature in the coming year, MBA will actively consider expanding the already existing association concept and infrastructure of the NMDA to other vehicular sectors that will be similarly well served by its extensive program and service offerings backed by leading vendors.

The drive to grow the NMDA subsidiary and deliver a sustainable and growing net profit for MBA's bottom line has been and continues to be the company's goal for FY 2005. MBA's 2004 fiscal year ended on Oct. 31 and the first quarter of the 2005 fiscal year ends on Jan. 31, 2005. MBA acknowledges shareholder interest in receiving revenue guidance for the 2005 fiscal year. MBA will endeavor to report on its earnings outlook for both the first and second halves of the 2005 fiscal year as the initial significant income streams from the NMDA are received during the second and third quarters of the 2005 fiscal year. MBA has committed its current resources towards building the NMDA into the growth engine that can deliver increasing profitability to the company and shareholder value in FY 2005. The expenditures of building the NMDA have clearly been intended as an investment in the future growth of the company which necessarily impact our current operational costs in the short term. The company continues to be gratified by shareholder interest and support and believes the forward-looking expectations that may be implicit in the business model of the NMDA are projected to be delivered to shareholder satisfaction as FY 2005 progresses.

With the NMDA having already produced successive announcements of partners, affiliates, agency agreements and acquisitions, there remain a considerable number of additional programs and partnerships to share with MBAH shareholders as permission is granted for public disclosure by affiliated parties. On the agenda for the NMDA's slate of programs that will be announced in the coming weeks and months are additional key components integral to making the NMDA the unparalleled motorcycle industry association.

Upcoming programs and initiatives to be unveiled include motorcycle financing and floor planning services, motorcycle accident and liability insurance, garage keepers and open lot liability insurance, manufacturer sponsorship and promotional arrangements, health and life insurance products, an expanding range of consumer warranty and insurance products, wholesale product offerings, cross-promotional tie-ins for related industry product categories, geographical expansion plans for the NMDA & rental operations and a continuing rollout of both traditional motorcycle products and cutting-edge services.

The NMDA is now moving forward aggressively to grow its membership base by large monthly increments going into FY 2005. Achieving a NMDA membership count of 1,000 remains the stated target for the first half of the 2005 calendar year. The longer-term goal for FY 2005 and beyond is to achieve a membership base in the thousands. As the NMDA became a reality that continues to generate daily participation inquiries from numerous companies in the motorcycle, insurance and finance industries, the company has reinvigorated its drive to accelerate membership growth as rapidly as possible.

In December, MBA has been increasing the NMDA membership daily while we are also pursuing aggressive wholesale membership expansion strategies. We are and will continue to negotiate with existing industry service organizations to enroll their dealer networks as a whole. The nature of these arrangements can add to the membership base as many as hundreds of dealers at one time. Pursuing such agreements is one of our specific goals for the very near future. As noted by some shareholders, the NMDA did remove the membership search function from its Web site to protect company and client interests, particularly during the initial stage of membership growth.

The NMDA is gearing up to market the association and will be a regular presence at major motorcycle industry trade shows including the upcoming V-Twin show in Cincinnati. Existing and future partners and agents will be authorized to expand the marketing reach of the NMDA which will further enhance the goal of growing membership and selling both NMDA and MBA products wherever motorcycles are rented and sold.

MBA maintains its pledge to sustain a manageable share structure that creates long term equity value for both the company and its shareholders. The company has pursued its plans for the growth of the NMDA this past quarter with minimal additional dilution of MBAH shares. The company is weighing further options to continue to deliver on its promise of enhanced shareholder value and will update shareholders on this matter in the coming weeks.

We are pleased to enter FY 2005 having achieved many of the company's goals for building a viable industry organization designed to serve the motorcycle industry for many years to come. As a bold strategy to transform the value and profit potential of MBA Holdings, we are confident we have made the right choice for the future of our company and our shareholders. With the strong lineup of programs and partners already assembled and ready to make the NMDA a success, we feel the NMDA has made a strong effort towards fulfilling its initial promise and develop in FY 2005 a leadership role in the growing motorcycle industry.

NMDA

http://www.nmda.us

M.B.A. Holdings

http://www.mbadirect.com