Modern Technology Corp to Acquire Mobile Sound Acquisition to add another $800,000 in annualized revenue and add another $2M in projected internal growth in year two OXFORD, Miss., Oct. 19 /PRNewswire-FirstCall/ -- Modern Technology Corp. (OTC:MOTG) (BULLETIN BOARD: MOTG) , a business development and acquisition company, announced today that it has entered into a Letter of Intent to purchase the assets of Mobile Sound, Inc., headquartered in North Bergen, New Jersey. Mobile Sound, a privately-held and a specialty car audio and performance retailer will be acquired as part of the previously announced plan for nationwide expansion under the Sound City brand and model. Mobile Sound's 2003 revenues were approximately $750,000 with projected revenues resulting from the acquired assets over the next year to be in excess of $1,000,000 and with projected second-year revenues to be in excess of $2MM through internal growth and cost reductions resulting from the Sound City platform. Sound City's retail store format, custom installation model and nationwide acquisition strategy is expected to generate in excess of $12MM for 2004 and exceed $20MM for 2005. "Mobile Sound is an acquisition based on our nationwide expansion plans and growth strategy for the Sound City model," said Anthony K. Welch, chairman of Modern Technology Corp. "The addition of the Mobile Sound assets to our portfolio moves us closer to our year-end target of $20,000,000 in overall MOTG assets and revenues." "The Mobile Sound acquisition is the first among many we have planned for the Sound City model and nationwide expansion," said Kamel Yassin, Chairman/CEO of Sound City, Inc. and MOTG's Director of Retail Acquisitions Under the terms of the agreement, Modern Technology Corp. will acquire the assets of Mobile Sound for a total purchase price $50,000 plus inventory paid in a combination of cash and Preferred Stock using its Forward Capitalization model of acquisitions. Upon closing of the acquisition, Mobile Sound's existing management will continue to run operations in its current locations. With the Mobile Sound and the recent Sound City acquisition, Modern Technology Corp continues to successfully execute its strategy of growth through strategic acquisitions, market development and revenue expansion. The Modern Technology acquisition strategy is based on its Forward Capitalization model that seeks to consistently build market value while simultaneously mitigating, or eliminating, negative dilution of common stock. Modern Technology Corp recently added DeMarco Energy Systems (Pink Sheets: DMES) to its portfolio of companies and announced a joint-venture for a national merchant banking network with Raptor Investments, Inc. (OTC:RAPT) (BULLETIN BOARD: RAPT) . MOTG expects to announce additional acquisitions in the very near future. Modern Technology Corp plans to release details on its growth and revenue projections for 2005, expected to be in excess of $75,000,000, and its plans for listing its Common Stock on a larger exchange in the near future. About Mobile Sound, Inc. Founded in 1998, New Jersey-based Mobile Sound, Inc. is a consumer electronics company with over 15,000 customers. Mobile Sound markets audio solutions for mobile environments. The company's expertise in the mobile audio market provides a unique competitive advantage to consumers. As a full service dealer, Mobile Sound provides a wide range of custom mobile audio, video and performance installations addressing numerous applications. About Modern Technology Corp Founded in 1982, Oxford, Mississippi-based Modern Technology Corp (MOTG) is a business development and acquisition company, focused on growth by strategic acquisitions and subsequent market and revenue expansion. MOTG provides business infrastructure, substantial intellectual capital, strategic investments, and ongoing support and revenue growth assistance to each individual company within its portfolio. In addition, 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 providing both stock and cash dividends to its shareholders, and to create and promote synergistic relationships among portfolio companies and affiliates. For more information, visit the company's web site at: 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. Company Contacts: Modern Technology Corp: Anthony Welch, Chairman, 1-662-236-5928, Sound City, Inc.: Kamel Yassin, Chairman/CEO, (800) 888-5343 x300, Media Contact: Susan Cable, Vice President of Marketing, (623) 465-5929, DATASOURCE: Modern Technology Corp CONTACT: Anthony Welch, Chairman, +1-662-236-5928, or , or Media, Susan Cable, Vice President of Marketing, +1-623-465-5929, or , both of Modern Technology Corp; or Kamel Yassin, Chairman and CEO of Sound City, Inc., +1-800-888-5343, ext. 300, or Web site: http://www.moderntechnologycorp.com/

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