OXFORD, Miss., May 3, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a diversified Business Development and Acquisition company, with reported assets and revenues in excess of $17 million, announced today that its majority-owned portfolio company, Sound City, has appointed Michael Bonder as Specialty Buyer. Mr. Bonder is an industry veteran with over 30 years industry experience and was the Vice President of Merchandising for large regional retail stores for audio and video electronics. Mr. Bonder will focus on coordinating the buying and inventory issues for new store openings and current Sound City locations. Sound City is expanding rapidly 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 has recently announced our planned opening of a new retail location and we have more we intend to open later in the year. This appointment prepares us for the coming year and beyond." said Kamel Yassin, President of Sound City. This important 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, Circuit City and Best Buy.
Recently, Sound City's parent company, MOTG exceeded its 2004 projections of $15MM in assets and revenues. As reflected in the most recent Form 8K/A, assets and revenues exceed $17MM. 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 a Shareholder Equity of $1,466,499 with only approx. 15,000,000 shares outstanding and only approximately 1,200,000 shares in the public float. MOTG increased its assets through the purchase of a $1.5 million Convertible Debenture in Demarco Energy. Converting this debenture adds another $1,500,000 in cash flow revenue for MOTG. Further, MOTG entered into an agreement with four institutional investors, who provided MOTG with $3.5 million in financing.
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. 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. Visit the company's web site at: http://www.soundcity.com .
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp is a diversified 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: 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.