OXFORD, Miss., May 5, 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 signed a multi-year contract with New York Spaces magazine. 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.
Established in 2004, New York Spaces magazine is published bi-monthly and inspires readers through lavish coverage of the best homes, gardens and interiors in the New York metro area -- and gives those readers the resources to turn inspiration into reality. New York Spaces is the home design magazine for and about the world's design capital -- Metropolitan New York.
"At Sound City our advantages are varied and plentiful. Our reputation for excellence and our commitment to exceeding customer expectations is only the beginning. We bring value and superior standards to each and every home theater we build. We bring the right pricing to all the products we sell and we carry the best brands out there," said Kamel Yassin, President. "We believe that this relationship will be beneficial to both Sound City and New York Spaces. Spaces is the perfect vehicle for Sound City to deliver our message of bringing homeowners a new commitment -- one to those seeking a higher standard."
Modern Technology Corp exceeded its 2004 projections of $15 million in assets and revenues by delivering assets and revenues of $17 million. MOTG further increased its assets via the purchase of a $1.5 million Convertible Debenture in Demarco Energy. (Pink Sheets:DMES). Converting this debenture adds another $1,500,000 in cash flow revenue for MOTG. With only about 15 million shares issued and outstanding current results yield $0.66 of sales per share and $0.46 cents of assets per share with a net shareholder equity position of over $1.4 million. MOTG's rapid growth and success demonstrate the power of its model. MOTG seeks to create growing shareholder equity supported by stable, strong revenues and assets. IMOTG has declared both stock and cash dividends. The last cash dividend was in March of 2004.
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 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: 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.