OXFORD, Miss., July 14, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a rapidly growing diversified technology development and acquisition company, announced today that its subsidiary, Sound City, added Metra Electronics' product lines to Reliant Distributing. The Metra Electronics product lines are the industry leaders in installation kits and wiring harnesses.
The Reliant Distributing operation continues the company's rapid expansion and growing product offerings for 2005. Added revenues from the Reliant operation are projected to be in excess of $500,000 for 2005 and over $2,000,000 for 2006. Reliant's growth is anticipated to occur on a national level with customer shipment turnaround capability of 24 to 48 hours resulting from the Company's existing infrastructure and inventory management technology systems.
"Our existing warehouse and inventory management facilities are second to none. The addition of Metra promises a strong revenue story for 2005 and 2006 and utilizes our infrastructure efficiency. We anticipate rapid revenue growth from this new endeavor," said Kamel Yassin, President of Sound City.
Anthony Welch, Modern Technology Corp.'s Chairman said, "Our platform continues to demonstrate it is ideal for the rapid introduction of technology and products from technology companies like Metra. The addition of the Metra product lines to our existing distribution and sales channel furthers our already outstanding past performance and creates powerful synergy with existing operations."
MOTG quarterly revenues are up $1.5 million over the same period last year and the company reported assets of over $7 million.
Further growth in revenues and planned acquisitions from the Electronics sector are expected to generate in excess of $25 million in 2005.
With completed transactions and the anticipated closing of ones under consideration, the Company expects 2005 revenue of between $25 million and $50 million. With transactions under consideration for the second half of 2005, MOTG expects 2005 revenue could be between $50 million and $75 million. The Company cautions that this guidance is its best, good-faith estimate based on current conditions and numerous assumptions about the industry, access to financing, the competitive and regulatory landscape, and MOTG's ability to successfully complete the acquisitions.
Modern Technology Corp. acquires key technologies and synergistic companies creating revenue and cost benefit from the introduction of both nascent and pre-existing products and technologies. MOTG creates growing shareholder equity supported by stable, strong revenues and assets. MOTG has declared both stock and cash dividends with its most recent cash dividend paid in March of 2004. To enhance investor awareness and promote institutional participation, MOTG intends to apply for a listing on a larger stock exchange as soon as is practicable.
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp. is a diversified technology development and acquisition company, building revenue 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.
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 .
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.
Modern Technology is a public company trading under the symbol "MOTG" on the OTCBB