SOURCE: Modern Technology Corp

November 14, 2005 14:50 ET

Modern Technology Corp Sets $50,000,000 2005 Revenue Target and Announces Positive 12 Month Results

OXFORD, MS -- (MARKET WIRE) -- November 14, 2005 -- Modern Technology Corp (OTC BB: MOTG) a diversified technology development and acquisition company reiterated today its goal for achieving $50,000,000 in revenues for 2005. The company has transactions now underway that may propel the company's revenues to its 2005 target of $50,000,000.

Anthony Welch, Modern Technology Corp's Chairman, said, "As our shareholders know by now, we set impressive and exciting goals. As shareholders have also witnessed, we deliver results and possess a clear history of meeting our goals. We release this guidance today to continue our efforts to communicate our activities and expectations. We are working on a few transactions now and we believe those transactions will propel our revenues beyond $50,000,000. Should we complete the transactions now under consideration, we will be in a position to list on a national exchange. We plan to list on the larger exchange concurrently with the transaction."

The company previously announced its planned acquisition of InMarketing Group, Inc. The Closing of this acquisition is in its final stages and is expected to be announced formally in the very near future with full disclosure filings for financial results. This acquisition 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 generated a profitable $5.8 Million in the first half of 2005.

The company also recently reported its annual results and announced a year-end June 30, 2005 pro forma revenue number of $12,242,487. (Form 10K-SB, Financial Statements, Note 20) The company reports $6,861,170 in Assets and positive Stockholder Equity. The company's expenses have been large due in part to interest expense and the extraordinary initial costs associated with acquisitions. The company's current growth pattern anticipates positive Earnings-Per-Share within the coming year.

The company's current revenue projections for 2005 year-end are expected to be in excess of $20,000,000. This projection does not include other acquisitions under consideration. It must be noted that we have transactions under consideration that may propel the company beyond $50,000,000 for 2005.

Dividends:

We have a history of dividends and intend to continue paying dividends as appropriate and as part of our anticipated subsidiary spin-off strategy. As our 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.

In 2004 the company declared and paid a $383,697 cash dividend. In October of 2001, the company declared and paid a stock dividend of 403,000 shares and on June 30, 1999, the company distributed a stock dividend of 403,000 shares as part of a spin-off transaction.

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.

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.

We are a public company trading under the symbol "MOTG" on the OTCBB.

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