OXFORD, Miss., April 19, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a diversified Business Development and Acquisition company with assets and revenues in excess of $17 million, announced today its portfolio company, Sound City, will open a new retail location. The new retail operation is part of the continuing and rapid expansion plans for 2005. The new location is anticipated to add $1.5 million to $3 million in revenues to MOTG operations annually, expanding internal revenue growth from fiscal 2004 revenues of $10 million by up to 30%. Further growth in revenues from operations and planned retail acquisitions from the Consumer Electronics sector of the MOTG portfolio are expected to generate in excess of $25 million in 2005. This revenue estimate does not include revenues from MOTG's other planned sector acquisitions throughout 2005, expected to be in excess of $50 million. As of June 30, 2004, MOTG revenues exceed $10,000,000. As of January 25, 2005, MOTG's cash position was $617,587 and total assets of $7,012,631 and positive Shareholder Equity of $1,466,499 with approx. 15 million shares issued and outstanding and only 1.2 million shares in the public float.
"This new location will expand our operations and revenues significantly," says Kamel Yassin, President and CEO of Sound City, Inc. "The new location is in a high-traffic area with no nearby competition. The new location will also be served by our current advertising activities. We beat our competition on price, and surpass them on service and product knowledge. We continue to secure market share with every passing month."
Today's announcement continues the planned expansion and retail acquisition strategy for the Sound City operational arm of MOTG. Sound City intends to bring consumer electronics stores under the Sound City model to gain market share from incumbent home entertainment retailers such as Harvey Electronics (Nasdaq:HRVE), Circuit City (NYSE:CC) and Best Buy (NYSE:BBY).
Sound City's parent company, MOTG, continues to experience rapid growth through acquisitions, market development and revenue expansion. The MOTG growth model seeks to consistently build shareholder value while mitigating, or eliminating, negative dilution of common stock. In addition to Sound City, MOTG recently added to its balance sheet a $1.5 million debenture in DeMarco Energy Systems (Pink Sheets:DMES), and will continue to announce additional acquisitions. MOTG recently completed a $3.5 million funding transaction and will continue to release updates on its growth projections and its plans for listing on a larger exchange.
About Sound City, Inc.
Sound City, Inc. is a leading consumer electronics company with customers across the U.S. Sound City markets audio and video solutions for home and mobile environments, including the fastest-growing HD-TV, Plasma and LCD segments. In addition, the company's expertise in the custom home theater market provides a unique competitive advantage to consumers. As a full service dealer, Sound City provides a wide range of custom home installations addressing numerous applications. As one of the largest electronics mail order companies in the U.S., with a customer base of over 900,000 customers, the company distributes its products and solutions through its direct mail and Web site channels. Consumers can also find the latest audio, video, car stereo and home theatre products in Sound City's retail locations, including 12 custom showrooms. For more information, visit the company's web site at: http://www.soundcity.com.
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp (MOTG) is a business development and acquisition company, building revenues by strategic acquisitions and subsequent market expansion. MOTG provides infrastructure, intellectual capital, strategic investments, and ongoing support and growth assistance to each company within its portfolio. MOTG provides mentoring and assistance through collective operations experience, significant industry contacts, and strategic and tactical advice. The company's mission is to consistently build shareholder equity through accretive acquisitions, to continue its history of stock and cash dividends, and to create and promote synergistic relationships among portfolio companies and affiliates. For more information, visit the company's web site at: http://www.moderntechnologycorp.com.
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Modern Technology Corp. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1479