Modern Technology Corp Announces Planned Spin-Off of H-NET Subsidiary

Modern Technology Corp (OTC BB: MOTG) a diversified technology development and acquisition company announced today it plans to spin-off its H-NET subsidiary as soon as practicable. All stockholders of record on the declaration date of the spin-off will receive a stock dividend in H-NET pro rata with their current ownership in Modern Technology Corp. The decision to spin off H-NET is based upon the following factors: 1. The desire to incur no further debt into the parent company to subsidize non-profit generating business units. 2. Operational and business development funding is believed to be easier to obtain if H-NET is a separate entity. 3. Modern Technology Corp is pursuing a focused plan on achieving profitability and building revenues through further acquisitions using equity-based transactions and wishes to eliminate demands on operational cash-flow. 4. The H-NET technology and market potential are believed to be significant and the potential equity appreciation from this growth we feel better serves Modern stockholders if H-NET is a separate listed public company with appropriate funding.

After institutional funding has been obtained and the related agreements executed, the spin off and stock dividend date will be determined and announced. All stockholders of record on that date will receive the stock dividend. The transaction is anticipated to be a registered offering and a new listed public stock on the OTCBB. If we do not secure institutional funding for this transaction, we will continue internal efforts to expand the H-NET subsidiary and spin the subsidiary off at a later time.

Anthony Welch, Chairman, said: "As previously stated, we are focused on generating profits in all business units. We are making some bold, and sometimes difficult decisions. The H-NET technology is solid and promising. We feel its funding and operational requirements are better met if it were a separate company. Furthermore, the spin off, if successful, will eliminate any cash demands and provide an equity building transaction for all stockholders."

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.

Newswire by Market Wire