Modern Technology Corp Signs Letter of Intent to Acquire Sound City

Modern Technology Corp Signs Letter of Intent to Acquire Sound
City
Leading Consumer Electronics Company to be Added to Portfolio 


OXFORD, Miss., Sept. 21  /PRNewswire/ -- 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 Sound
City, Inc., headquartered in Towaco, New Jersey.  Sound City, a privately-held
and a specialty audio video consumer electronics retailer, markets its products
using a diversified distribution strategy through its Web site, direct mail,
retail store and a custom Home Theater Installation department.

Sound City's 2003 revenues were approximately $12,000,000 with projected
revenues resulting from additional expansion and marketing efforts for 2004 to
be in excess of $12,000,000 and with projected 2005 revenues to be in excess of
$20MM through internal growth and planned acquisitions. Sound City's retail
store format, custom installation model and nationwide acquisition strategy is
similar to and parallels the successful model of Tweeter, Inc. (TWTR)

"Sound City is an important addition to our portfolio," said Anthony K. Welch,
chairman of Modern Technology Corp.  "Given its high-growth markets, its
successful 18-year operating track record, and its exceptionally talented
management team, we firmly believe Sound City has the potential to
significantly grow its already strong customer base.  The addition of Sound
City to our portfolio moves us closer to our year-end target of $20,000,000 in
assets and revenues."

"Coming under the Modern Technology Corp umbrella allows Sound City to achieve
its strategic goals more quickly and easily," said Kamel Yassin, Chairman/CEO
of Sound City, Inc.  "We now have a partner to help us implement our growth
strategies, run operations and further increase our existing revenue streams. 
The timing could not be better to exploit our high growth markets, including
the HD-TV and flat-panel TV segment which is expected to grow 39% globally by
2008."

Under the terms of the agreement, Modern Technology Corp will acquire Sound
City for $6.0 million paid in a combination of cash and Preferred Stock using
its Forward Capitalization model of acquisitions.  Upon closing of the
acquisition, Sound City's existing management will continue to run operations
in its current locations.  In addition, Kamel Yassin will lead Modern
Technology Corp's division for nationwide retail acquisitions in order to bring
new consumer electronics stores under the Sound City model to gain market share
from incumbent home entertainment retailers such as Circuit City (CC) and Best
Buy (BBY).

With the 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
model 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 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 Sound City, Inc.

Founded in 1986, Towaco, New Jersey-based Sound City, Inc. is a leading
consumer electronics company with over 900,000 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.  In addition, the
company's expertise in the custom home theater market provides a unique
competitive advantage to consumers.  As a full service dealer, Sound City
provides a wide range of custom home installations addressing numerous
applications.  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 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.

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, [phone] x300, 

   Media Contact:
   Susan Cable, Vice President of Marketing, [phone],
   

DATASOURCE: Modern Technology Corp



CONTACT:  Anthony Welch, Chairman of Modern Technology Corp,

[phone], or  ; or Kamel Yassin,

Chairman-CEO of Sound City, Inc., [phone], ext. 300, or

 ; or Media, Susan Cable, Vice President of Marketing of

Modern Technology Corp, [phone], or  



Web site:  http://www.moderntechnologycorp.com/ 

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