Warm Greetings from everyone at MBA Holdings, Inc. in Scottsdale, Arizona.  It may be getting cold in the upper U.S. but weather is still going good in the South West.  Let all say a prayer for the people in Southern California and the fires.

As I told you in the last report, Mechanical Breakdown Administrators, Inc. has been busy working on several new automobile warranties, including new programs for Motorcycles and R.V.’s, and we have completed the Motorcycle Warranty Program and are in the Marketing Phase.  Still working on the RV and New Auto Programs, we have been approached by several International Insurance Companies to work with them and design a new warranty program for the United States Market. 

Also we were very close to completing the entire redoing of our accounting process and procedures, complete with a new accounting and audit staff and I am happy to report that that goal is almost completed and will be in November 2007.  Also:  It is our goal to reapply for Bulletin Board status and get approved by late 2007 or early 2008, and this goal is still on track.

Extended Warranty Business has been steady for 2007 for our auto and recreational vehicle business, with large profitability gains on retrospective earnings and investment income, which takes many years of hard work to produce.  We are forming new partnerships with agents, administrators and insurance companies in the US to increase our business.  But we have also gained ground with the New Motorcycle Warranty Program from U. S. Warranty.  We are looking forward to the spring motorcycle season to start in 2008

I also stated that: A new store is projected to open in Charleston, S.C., Coeur D’ Alene, Id. area, and Houston, Texas in August 2007. We opened Charleston, but the Coeur D’ Alene, Id., has been postponed until spring 2008, and the Houston Owner was injured in a motorcycle accident and it looks like it will be spring before he will have his new store open.  We did open two stores in Las Vegas, NV, but Miami/Miami Beach has been delayed by the owner and Oceanside and San Diego, California, plus Phoenix and Tucson, Arizona locations are projected to open in Spring 2008. We still have several other potential stores in Ohio, Pennsylvania, D.C., N.H., and the Boston areas, additional stores in Texas, Florida and California are very close. 

The Northeast United States has a lot of motorcycle rental prospects and we feel we will get stores open in the spring of 2008, I spent a great deal of time in the Northeast in August of 2007 with store owners and feel good about the results.

NMDA:

 The National Motorcycle Dealer Association has many new programs that will be coming on line in the next six months and we are pleased with the progress the NMDA has made in the last six months, membership is up, we have added several new programs and that will be announced before the end of the first quarter of 2008, they include a new nationwide retail financing program for Motorcycles, Auto and RV Dealers to aid Dealers in the financing of their retail customers. 

We are currently marketing to every Motorcycle Dealer in the United States to use our new finance program with great results.  Other New Insurance programs are a new Motorcycle Dealer Warranty program that we are rolling out across the United States, our programs are stimulating dealers to join the NMDA and take advantage of our services.

Motorcycle Rental: 

Street Eagle and all the rental company websites are being redesigned. Street Eagle has and is opening several new stores in the United States and our plans are to open at least ten additional stores in the U.S. and five in Mexico in 2008.  We have added several new features to the Street Eagle Rental  Company including a New Logo  and marketing materials for 2008, a new advertising program, accessory programs for our rental stores for leather products, T-Shirts, Helmets, and a web based parts system for our dealers and rental dealers. 

But we are most proud of is a brand new motorcycle rental software system that is being rolled out to the rental stores at this time, it is one of the strongest and most reliable systems in the rental area and includes a large catalog of business reports, tracking of customers and the ability to run and track multiple stores.  Also new web enabled rental marketing materials.

We just completed our participation in the Phoenix Motorcycle Show on October 26, 27, and 28^th with great exposure to the public , dealer attendees and motorcycle manufacturers that attended the show, and we will have some big announcements in the future about the rental program.

We will be attending the Indy Motorcycle Show and Cincinnati Motorcycle Show in 2008, as well as the Daytona Bike Week, Arizona Bike Week,  Laughlin River Run and  Myrtle Beach Bike Week plus others.

We are looking forward to the spring motorcycle season to start in 2008, next report January 31, 2008

Thank you, and Happy Holidays to you all.

Gaylen Brotherson-CEO