OXFORD, Miss., Sept. 22, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a diversified technology development and acquisition company, expects to meet, on a pro forma basis, its projections for mid-year revenue targets of around $25,000,000. The imminent addition of the company's latest acquisition will add a projected $11,000,000 to current operations. Acquisition candidates currently under negotiations and, if successfully concluded, are expected to add another $30,000,000 to $40,000,000 to the company's overall 2005 current pro forma projected revenues of over $20,000,000 bringing the potential total revenue totals to around $60,000,000.
The company exceeded its 2004 projections by delivering to stockholders revenues of $10,000,000 and current assets of $7,000,000.
The company is completing final documents to acquire InMarketing Group. This adds a projected $11 million in 2005 profitable revenues and a projected additional $13 million in profitable revenues for 2006 to our current revenues. InMarketing Group reports $8.7 million in profitable revenues for 2004 and reports $5.8 million in the first half of 2005.
Modern Technology Corp.'s 2004 pro forma revenues will be adjusted upward to $18,000,000 and our 2005 pro forma revenues without further acquisitions are expected to be around $25,000,000.
Paying of Dividends:
In 2004 the company paid a $383,697 cash dividend. In October of 2001, the company paid a stock dividend of 403,000 shares and on June 30, 1999, the company distributed a stock dividend of 403,000 shares as part of a spin-off transaction.
The company intends to pay dividends as appropriate and as part of its anticipated subsidiary spin-off strategy. As the company's subsidiaries mature and grow, a public spin-off transaction will be considered. Each stockholder in MOTG would receive stock in the new public spin-off company in addition to stock they already own in MOTG. The company's long-term plan is for stockholders to realize strong capital appreciation from their MOTG stock as well as the stock paid to them as part of the spin-off transactions.
The company's subsidiary Sound City (www.soundcity.com), is in the process of expanding its retail footprint and continues to add product lines. InMarketing Group is expected to continue its strong year-on-year growth and profitability. The company expects ongoing synergy-based cost reductions as well as increased revenue growth resulting from the synergies between the subsidiaries.
The company has other acquisitions under consideration that can easily take revenues beyond $50,000,000 for 2005.
This guidance is the company's best, good faith estimate based on current conditions and numerous assumptions about the company's industry, its access to financing, the competitive and regulatory landscape and its ability to successfully consummate the acquisitions under consideration.
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp. is a diversified technology development and acquisition company, building revenues by strategic acquisition and commercialization of nascent commercial technology and by the acquisition of synergistic operating companies. MOTG commercializes technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to consistently build shareholder value through accretive acquisitions of emerging technology or acquiring operating companies capable of benefiting from technology infrastructure enhancements or new product lines. 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.