SOURCE: Modern Technology Corp

May 04, 2006 13:33 ET

Modern Technology Corp Initiates Aggressive Cost Reduction Plan to Achieve 2006 Profitability

OXFORD, MS -- (MARKET WIRE) -- May 4, 2006 -- Modern Technology Corp (OTC BB: MOTG) a diversified technology development and acquisition company announced today the first step among several planned initiatives to reduce operational overhead an steer the organization to 2006 positive earnings.

As part of the cost-reduction plan, the Company will close the Franklin location of Sound City. Retail foot-traffic has been less than anticipated at this location. Operations and inventory will be relocated to the Denville location.

Anthony Welch, Chairman, said: "In order to realize recurring profits, retail operations such as Sound City require tremendous foot-traffic. Our expansion efforts to the Franklin location have not generated the anticipated level of customer traffic and related revenues. Therefore, we have elected to transfer the operations of this location to our Denville store and reducing associated costs. This is the first among many positive changes we are making to reduce costs and increase earnings for MOTG shareholders."

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