OXFORD, Miss., March 3, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a business development and acquisition company, announced today that its majority-owned portfolio company, Sound City, has appointed Stephen Faudman Vice President. Mr. Faudman is an industry veteran having held recently both Vice President and Director of Merchandising for five years at Karl's Appliance, a retail appliance and electronic store with 7 locations in the New Jersey market. Mr. Faudman was responsible for significant sales volume increases at Karl's for four consecutive years. Mr. Faudman will focus on strategic business planning, growth management, and profit analysis. Sound City is preparing for rapid expansion in 2005 and revenues from operations and planned retail acquisitions are expected to generate in excess of $25 Million. This estimate does not include revenues from MOTG's other planned acquisitions through out 2005, expected to be in excess of $50 Million.
"Sound City anticipates outstanding growth from both internal operations and acquisitions of other retailers. This appointment prepares us for the coming year and beyond," said Kamel Yassin, President of Sound City. This important executive appointment continues the planned expansion and retail acquisition strategy. 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 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 (Pink Sheets: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 $1.5MM in new debenture asset. The company plans to release details on its growth and revenue projections for 2005 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.