Modern Technology Corp. Announces $25 Million in Estimated 2005 Revenues from Sound City as Expansion Plans Continue

As Part of Sound City's Continuing Expansion Plans for 2005 and Estimated Revenues of $25 Million, Sony Approves Sound City to Carry Its Qualia Line of Television Products


OXFORD, Miss., Feb. 28, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a business development and acquisition company, announced today that its majority-owned portfolio company, Sound City, has been approved and authorized to carry Sony's (NYSE:SNE) Qualia line of television products. This new line of products continues the company's expansion efforts. The Qualia line is a state of the art, limited distribution television product line designed for Audio-Video Specialist Retailers, and is a valuable addition to the product line-up. Revenues from the Sound City operations and planned retail acquisitions are expected to generate in excess of $25 Million for 2005. This figure does not include revenues from MOTG's other planned acquisitions throughout 2005, expected to be in excess of $50 Million.

"Sound City is focused on rapid growth for 2005. The Qualia line furthers our efforts in expanding revenues and continues our focus on high-quality products and outstanding customer service. This new luxury line of television products is an important addition to the expansion efforts currently underway," said Kamel Yassin, President of Sound City. The Qualia product line is targeted to the high-end, luxury markets. Sound City's marketing and expansion plans are focused toward discerning customers and quality-oriented service. The addition of the Qualia line of luxury products continues Sound City's planned expansion and retail acquisition strategy bringing new consumer electronics stores under the Sound City model to gain market share from incumbent home entertainment retailers such as Circuit City (NYSE:CC) and Best Buy (NYSE:BBY).

MOTG continues to execute its strategy of growth through strategic acquisitions, market development and revenue expansion. The MOTG acquisition model seeks to consistently build market value while simultaneously mitigating, or eliminating, negative dilution of common stock. In addition to Sound City, MOTG recently added DeMarco Energy Systems (Other OTC:DMES) to its portfolio of companies, and will continue to announce additional acquisitions. MOTG recently completed a $3.5 Million funding transaction which included the acquisition of $1.5M in new debenture assets and the company plans to release details on its growth and revenue projections for 2005 and its plans for listing its Common Stock on a larger exchange in the future.

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.



            

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