MBA Holdings Commences Program to Grow Warranty Sales

SCOTTSDALE, Ariz.--Feb. 7, 2005--MBA Holdings, Inc. (OTCBB:MBAH) has commenced a long-term strategic plan to increase sales of its traditional core business of extended vehicle warranties. MBA is one of the original innovators of direct marketing of warranties for Vehicle Service Contracts and Mechanical Breakdown Insurance. As attention on our subsidiary, the National Motorcycle Association (NMDA), has grown, the company has remained committed to rebuilding its warranty business which previously achieved revenue levels of approximately $32M annually.

The combination of adverse economic conditions coupled with fundamental changes in the insurance industry the past several years significantly impacted MBA's sale of warranties and our revenues. While some warranty provisions have been increased on newly manufactured cars, the existing market for extended warranties remains large and economically viable, particularly as the company enters into new market sectors through the NMDA.

MBA is an expert in the extended auto warranty field offering comprehensive coverages for cars, light trucks, motorcycles, RVs and ATVs since 1984. Besides offering direct sales to the public, MBA has a long-standing sales network through a network of hundreds of credit unions nationwide and a team of independent sales agents. Both sales networks continued to produce new customers in 2004 while MBA has refocused efforts to maximize new sales channels and implement potentially lucrative cross-marketing deals to rebuild the historical foundation of our business.

MBA has recently entered into agreements with two important direct marketing organizations to sell our warranties. Even today, telemarketing companies that effectively work within federal compliance standards produce high sales rates when targeting pre-screened client lists in specific market niches. These are established marketing firms with solid track records for boosting the sales of their clients and we gained positive results in the first week of these partnerships.

The economic incentive for MBA to engage other direct marketing organizations is simple: they have the potential to deliver thousands of new warranty contracts for MBA. Per increased shareholder inquiries about revenue models and projections for MBA and our subsidiary, the NMDA, this is an opportune time to examine some of the underpinnings of how MBA will earn its future income, starting with our warranty business.

MBA has typically split the receipts on warranty sales three ways. The insurance underwriters of our premiums receive the minority portion of the sale, a standard business practice. For example, on a $900 warranty, the underwriter may receive approximately $300. MBA would then receive approximately $150. The balance of approximately $450 would go into escrow as a reserve for the life of the warranty. Upon expiration of the warranty, MBA receives a portion of the balance remaining after any claim payouts. This financial structure is highly lucrative with sufficient sales volume.

MBA will allocate a portion of the proceeds on each warranty sold to our new direct marketing partner firms. This will still earn for MBA the majority of the net proceeds earned on each warranty, including the entirety of the back end payout on the bulk of the contract held in escrow. These new sales channels are anticipated to contribute to the current fiscal quarter's revenues. The sales targets of our new marketing partners include projections to produce approximately 1,000 new warranty contracts per month by this Summer.

The long-term goal is to generate up to 2,000 new warranties per month through these marketing partners. Achieving a benchmark of 1,000 new warranty sales per month would contribute well over a hundred thousand dollars in immediate monthly revenues, which alone should constitute an immediate annualized revenue growth rate of approximately 20-30% per year if these goals are met.

Such a result would be significant contributing factor leading to company growth, profitability and an increase in shareholder equity. Additionally, such sales growth would produce even more in anticipated future cash flow as the back-end payouts on expiring extended warranties come to maturity. Any such improvement in revenues would be in addition to future revenues reported by the NMDA.

MBA continues to pursue relationships with national auto service centers to cross-market MBA warranties to their oil change customers. The company believes this would be a significant additional sales channel for our warranty products. MBA will report on any such arrangement upon a completed agreement and partner approval.

The company is also actively exploring the sales of their warranty products for autos, motorcycles and RVs sold at auction. The company believes access to the hundreds of thousands of vehicles sold at auction would represent a significant warranty sales channel. MBA will attempt to gain sponsorship from major auction houses for their warranty programs. If MBA succeeds in receiving partnership commitments to put MBA warranties on vehicles sold at auction, the growth opportunity would be significant.

MBA will market motorcycle warranties through the NMDA in the future and work to generate sales growth for RV warranties. Many of our current shareholders discovered MBA as changes were implemented to turnaround the company and produce new growth opportunities. The formation and development of the NMDA has been a key component in this plan. Our shareholders are entitled to also understand MBA's warranty business remains a fundamental part of the company's business plan and is still projected to be a key contributor to our future earnings.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to business conditions and the amount of growth in the insurance or associated automotive industries and general economy, competitive factors, and other risks detailed from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q. The Company does not undertake any obligation to update forward-looking statements.

M.B.A. Holdings

http://www.mbadirect.com

NMDA

http://www.nmda.us