OXFORD, Miss., Aug. 25, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a diversified technology development and acquisition company, announced meeting its revenue projections for mid-year 2005 and issues a general update on the company's progress and future.
Results to date:
In less than one year of executing its new, expanded business plan, the company has delivered to investors superb results. The company exceeded its 2004 projections by delivering to stockholders revenues of $10,000,000 and current assets of $7,000,000.
The company recently entered into a Letter of Intent to acquire InMarketing Group. This new subsidiary adds an estimated $11 Million in 2005 profitable revenues and a projected additional $13 Million in profitable revenues for 2006. InMarketing Group generated $8.7 Million in profitable revenues in 2004 and has generated $5.8 Million in the first half of 2005.
The company's pro forma 2004 revenues are therefore approximately $18,000,000 and is in range of its mid-year pro forma revenue projections of $25,000,000.
Dividends:
In 2004 the company paid a $383,697 cash dividend. The company has paid stock dividends in addition to cash dividends. In October of 2001, the company paid a stock dividend of 403,000 shares in our portfolio company, Scientio, as part of a spin-off transaction. As of June 30, 1999, the company distributed a stock dividend of 403,000 shares in our portfolio company, Coral Development Corp., 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.
Internal Cash Flow:
One of our assets is a Convertible Debenture in DeMarco Energy Systems, Inc. This debenture is planned to generate over $1.5 Million in cash for MOTG and our interests are further secured by the patents and rights to key geothermal technologies owned by DeMarco Energy Systems (Other OTC:DMES). (www.demarcoenergy.com). This asset serves as a mechanism for generating internal cash-flow as needed.
Future Growth:
In June 2005 the company announced a strategic alliance agreement with UTEK Corporation. This alliance provides the company with nascent, market-ready technologies. The company intends to commercialize them through its existing sales and distribution channels. The company has market-ready technology already under consideration for immediate acquisition. The company projects significant revenues from these technologies.
The company's subsidiary Sound City (www.soundcity.com) is in the process of tripling 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.
Listing on a National Exchange
The company intends to list on a national exchange. The company anticipates listing its stock on either AMEX or Nasdaq concurrently with meeting the qualification criteria. The company expects to meet the listing criteria within the next 12 months.
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.