SOURCE: Modern Technology Corp

May 11, 2006 18:39 ET

Modern Technology Corp Announces New Operational Unit and Expands Cost Reductions to Achieve 2006 Profitability

OXFORD, MS -- (MARKET WIRE) -- May 11, 2006 -- Modern Technology Corp (OTC BB: MOTG) a diversified technology development and acquisition company announced today a new business model that will be launched shortly and will focus on distribution and product servicing for the incentive marketing sector. The company also announces as part of this operational realignment a further reduction of its operational overhead as part of the company's 2006 earnings plans.

The infrastructure and operations of our retail electronics business unit will be realigned to service the lucrative incentive marketing business and will be re-branded under a new operational name. The operational realignment maximizes synergy and revenue potential with our subsidiary, INmarketing Group. As part of the cost-reduction plan, the Company will move operations of the Denville retail location of Sound City to its Towaco distribution center and focus its new sales efforts under the new model. Retail inventory will be sold at the Denville facility. Sound City Infrastructure for Distribution, warehousing, shipping, and inventory management functions will continue at company's main warehouse and distribution center as it does at present.

Anthony Welch, Chairman, said: "As part of our 2006 profitability plan and as promised to stockholders, we have reformed our retail division to a transactionally profitable model not reliant upon the vicissitudes of retail consumer electronics. We are also greatly expanding our product depth to include categories outside consumer electronics to better service the growing incentive marketing sector. The support of profitable business units is among our highest priorities. Shareholders should expect further announcements on this tremendous new initiative as well as updates on additional acquisitions. We are very excited about these changes."

About Modern Technology Corp

Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: 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.

Contact Information

  • Company Contact:
    Megan Peterson
    1.662.236.5928

    Modern Technology Corp
    1420 North Lamar Blvd.
    Oxford, MS
    38655 USA
    Phone: +1.662.236.5928
    Fax: +1.662.236.7663
    Web: www.moderntechnologycorp.com

    We are a public company trading under the symbol “MOTG” on the OTCBB