The Marketing Alliance Announces Fiscal Year 2006 First Quarter Financial Results

Highlights for the three-month period ended June 30,
2005

   --  Company changes fiscal year end to March 31st

   --  Net income increases 233% to $222,000, or $0.11 per share

   --  Balance sheet remains solid with $2.8 million of working
        capital and no long-term debt.

   The Marketing Alliance, Inc. (Pink Sheets: MAAL) ("TMA"), a
consortium of independent life insurance brokerage general agencies
located throughout the United States, today announced its fiscal 2006
first quarter financial results for the three months ended June 30,
2005.
   As previously announced, TMA's Board of Directors approved a
change in the Company's fiscal year to the twelve months ending March
31st from a calendar year ending on December 31st. The Company decided
to make this change to better align its fiscal year with the business
cycle of its customers. The next quarterly period the Company will
report will be its fiscal 2006 second quarter ending September 30,
2005.
   Timothy M. Klusas, TMA's President, stated, "My goal since being
appointed in March was to design and implement the strategies
necessary to establish TMA as a premier life insurance products
marketing organization. TMA has made numerous strides to address
potential areas of growth, and continues to build a foundation for the
future of the Company."
   Revenues for the three-month period ended June 30, 2005 decreased
to $3.9 million from $4.1 million in the same period last year,
partially due to a slowdown in economic conditions of certain member
agencies. Operating revenue, or gross profit, for the three-month
period ended June 30, 2005 was $1.07 million, compared to $1.14
million reported in the same period last year. This is due primarily
to lower revenues and increased bonuses earned by TMA distributors.
   Operating expenses for the three-month period ended June 30, 2005
rose 7% to $720,000 from the same period last year. As stated in past
announcements, operating expenses have begun to return to more
normalized levels following certain transitional costs related to the
opening of the Omaha Business Center in May 2004; start-up costs of
the Company's annuity products subsidiary, TMA Marketing, Inc; and
certain one-time severance packages paid to former employees. As a
result, operating expenses decreased 29% sequentially from the first
quarter. Despite these increased year-over-year costs, TMA reported
operating income of $350,000 in the three-month period ended June 30,
2005, as compared to operating income of $469,000 in the comparable
prior year period.
   The Company reported net income of $222,000, or $0.11 per share,
in the three month period ended June 30, 2005, versus net income of
$67,000, or $0.03 per share, for the same period last year. The
primary reasons for this increase were realized and unrealized gains
on investments of $50,000 in the three-month period ended June 30,
2005. In April 2005, the Company reassessed its investment strategy,
which previously consisted of a portfolio largely containing equity
investments in regional banks. TMA is now beginning to benefit from a
shift of a large majority of its investment portfolio to third-party
financial managers, with a focus on steady, long-term growth
consistent with TMA's working capital needs.
   TMA's balance sheet at June 30, 2005 reflected working capital of
$2.8 million and no long-term debt.
   Mr. Klusas concluded, "We continue to work towards our goal of
providing our members with the means to compete, which include
leveraging pooled production, centralized processing, shared services
and outsourcing. We are optimistic that we will continue to attract
new agencies to our network as well as help our existing agencies grow
with our core carriers."

   ABOUT THE MARKETING ALLIANCE, INC.

   Headquartered in Pittsburgh, PA, TMA is one the largest
organizations providing support to independent insurance brokerage
agencies, with a goal of providing members value-added services on a
more efficient basis than they can achieve individually. TMA's network
is comprised of approximately 150 independent life brokerage and
general agencies in 43 states. Investor information can be accessed
through the shareholder section of TMA's website at
http://www.themarketingalliance.com/si_who.cfm.

   FORWARD LOOKING STATEMENT

   Investors are cautioned that forward-looking statements involve
risks and uncertainties that may affect TMA's business and prospects.
Any forward-looking statements contained in this press release
represent our estimates only as of the date hereof, or as of such
earlier dates as are indicated, and should not be relied upon as
representing our estimates as of any subsequent date. These statements
involve a number of risks and uncertainties, including, but not
limited to, general changes in economic conditions. While we may elect
to update forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so.
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    Consolidated Statement of Operations
                                                   Quarter Ended

                                               6/30/2005   6/30/2004

Revenues                                      $3,909,625  $4,053,530
                                              ----------- -----------

Distributor Related Expenses
Distributor bonus & commissions paid           2,180,641   2,130,742
Distributor benefits & processing                659,087     779,361
                                              ----------- -----------
Total                                          2,839,728   2,910,103
                                              ----------- -----------

Net Operating Revenue                          1,069,897   1,143,427

Operating Expenses                               719,603     674,793
                                              ----------- -----------

Operating Income                                 350,294     468,634

Other Income (Expense)
Interest & dividend Income (net)                  11,309      11,452
Realized & unrealized gains (losses)
on investments (net)                              49,501    (266,700)
Interest expense                                  (2,703)     (6,463)
Other                                            (16,376)    (49,247)
                                              ----------- -----------

Income Before Provision for Income Tax           392,025     157,676

Provision for income taxes                      (170,000)    (91,000)
                                              ----------- -----------

Net Income                                      $222,025     $66,676
                                              =========== ===========

Shares Outstanding                             2,036,747   2,036,747

Operating Income per Share                         $0.17       $0.23
Net Income per Share                               $0.11       $0.03


               Consolidated Selected Balance Sheet Items
                                                         As of

                   Assets                      6/30/2005   3/31/2005
Current Assets
Cash                                            $113,461    $451,228
Receivables                                    4,765,430   4,776,861
Investments                                    2,398,933   1,929,600
Other                                            297,507     287,826
                                              ----------- -----------
Total Current Assets                           7,575,331   7,445,515

Other Non Current Assets                         422,733     460,754
                                              ----------- -----------

Total Assets                                  $7,998,064  $7,906,269
                                              =========== ===========

     Liabilities & Stockholders' Equity

Total Current Liabilities                     $4,811,247  $4,941,478
                                              ----------- -----------

Total Liabilities                              4,811,247   4,941,478

Stockholders' Equity                           3,186,817   2,964,791
                                              ----------- -----------

Liabilities & Stockholders' Equity            $7,998,064  $7,906,269
                                              =========== ===========
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