Archual Named President of Morgan Drive Away

    RYE, N.Y.--Feb. 12, 2001--The Morgan Group, Inc., (AMEX:MG), announced today that Michael J. Archual has been named President of the Company's primary subsidiary, Morgan Drive Away, Inc. Mr. Archual will be based at the Company's Elkhart, Indiana, location and will oversee its specialized transportation business segments: Manufactured Housing and Specialized Outsourcing Services. The position of Company president had been vacant since the former president resigned last year.
    Mr. Archual, 49, with more than 30 years experience in the transportation industry, brings significant senior management skills in marketing, e-commerce, training, and general management to the Company.
    He joins Morgan from TruckersB2B, Inc., a business-to-business service subsidiary of Celadon Group, Inc., where he was Vice President, Marketing and Sales. Previously, he served as President - Servicios de Transportacion Jaguar, S.A.de C.V., another Celadon subsidiary. While at Jaguar, he was responsible for overseeing the Company's growth from 30 trucks to over 200 in approximately two years. Prior to that, he was Executive Vice President of Celadon Trucking Services, where he managed the Company's $180 million Mexican and Canadian businesses. He earned both his Bachelor's in Industrial Management and MBA from the University of Akron.
    Commenting on the appointment, Anthony T. Castor, III, President and Chief Executive Officer of The Morgan Group, said, "With the manufactured housing industry facing sustained softness, our strategy has been to enhance operational efficiency, improve our safety measures, and situate ourselves to generate substantial earnings when the industry reverts to more normalized conditions. We have made progress on all fronts, and today's announcement is another step in that direction. Michael's skills complement those of our existing team, and his leadership and proven marketing capabilities fit exceptionally well with our ongoing objectives."
    Mr. Archual added: "Morgan has developed an exceptional foundation on which to build. With its national presence, the Company provides substantial competitive advantages including better insurance and safety protection and enhanced reliability, as well as allowing entry into standardized national contracts that are mutually beneficial to Morgan and its customers. I am extremely pleased to be offered this opportunity to play a significant role with such a dominant industry leader."
    The Morgan Group, Inc., through its subsidiaries Morgan Drive Away, Inc., and TDI, Inc. ("Morgan Drive Away"), is the nation's largest company managing the delivery of manufactured homes, commercial vehicles and specialized equipment in the United States. The Company has a national network of approximately 1,023 independent owner-operators and 1,410 other drivers dispatched from 74 locations in 28 states. The Morgan Group, Inc., also provides insurance and financial services through its wholly owned subsidiaries, Interstate Indemnity and Morgan Finance, Inc.
    This press release contains forward-looking statements, including initiatives relating to profitability and expectations regarding the availability of credit. Such statements are subject to a number of material factors that could cause the statements or projections contained therein to be materially inaccurate. Such factors include, without limitation, successful implementation of cost-reduction initiatives, overall economic conditions, competition for customers and drivers, and risks associated with business operations, acquisitions, expansion into new business lines, and changes in the regulatory environment.