OXFORD, Miss., March 4, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a business development and acquisition company, announced today that its majority-owned portfolio company, Sound City, has unveiled its new concept store: "The TV Warehouse" opening in the New Jersey market soon. This new store chain represents the continuing and rapid expansion plans for 2005. Growth in revenues from operations and planned retail acquisitions are expected to generate in excess of $25 Million. This revenue estimate does not include revenues from MOTG's other planned acquisitions throughout 2005, expected to be in excess of $50 Million.
Sound City Inc, one of region's premier specialty retailers of consumer electronics and custom Home Theater Installations, unveiled its new concept store today. "The TV Warehouse" will feature a combination of Plasma, LCD and Rear projection DLP displays in a format that is no more than 4000 sq.ft. in size.
The first store, slated to open June 2005, is the first of its kind in the consumer electronics industry. Representing the new concept for expansion and the one-stop-shop for consumers looking for a flat-screen HDTV. This new retail concept allows consumers to discuss the latest technology with a team of highly trained Sales Associates. As the name states, it focuses on the selling of TV's at discount pricing but the inside of the store will be a pleasant surprise for the customer: The inside is configured as a boutique-style environment catering to customers who appreciate quality selection, service and support. The new store will also feature top-quality A/V furniture and accessories. The Sound City custom installation department will provide the installations for this new concept store.
"This is what I wanted to do for years," says Kamel Yassin, President and CEO of Sound City, Inc. "The TV Warehouse will offer over 50 HDTV models in an environment that is easy to navigate and compare the quality as well as pricing versus the competition. We will provide the advertisements on a daily basis of our competition. By beating the competition on price and surpassing them on service and product knowledge, we will continue to secure market share with every passing month."
Today's unveiling 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 (NasdaqSC: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 $1.5 Million 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.