The Morgan Group Receives Investment From Lynch Interactive Corporation

    ELKHART, Ind.--July 19, 2001--The Morgan Group, Inc. (AMEX:MG) today reported the completion of a previously announced $2.0 million capital infusion from its majority stockholder Lynch Interactive Corp. (AMEX:LIC).
    Morgan's Board of Directors authorized the issuance of one million new Class B shares of common stock on May 9, 2001. The new Class B shares were issued to Lynch Interactive in exchange for $2.0 million, thereby increasing Lynch's ownership position from 55.6% to 68.5%. The transaction closed on July 12, 2001, following Morgan's annual meeting of stockholders where the authorization of additional Class B shares was approved.
    Anthony T. Castor, III, President and Chief Executive Officer of The Morgan Group, said, "The support Morgan has received from Lynch Interactive, in terms of this additional commitment, provides us with the additional resources necessary to implement our strategic business plan. Our goal is to continue our leadership in the markets for transportation of manufactured homes and recreational vehicles while expanding our presence in other drive away markets. Today, no other company in the industry can bring more experience and resources to bear in delivering these specialized services on a national basis."
    According to Michael Archual, President of Morgan Drive Away, Inc., "We believe the manufactured housing industry is recovering from a two-year slump in sales of new floors. Our management team is committed to maximizing the opportunities in the current market, setting the stage for future growth and profitability. The investment by Lynch Interactive will enable us to bolster our working capital and marketing efforts during these pivotal times."
    The Morgan Board has also authorized management to develop opportunities for other shareholders to acquire additional equity investment in the Company.
    The Morgan Group, Inc., through its subsidiaries Morgan Drive Away, Inc., and TDI, Inc., is the nation's largest provider of transportation services for manufactured homes, recreational vehicles, commercial vehicles and specialized equipment in the United States.

    This press release contains forward-looking statements, including initiatives relating to changes in the manufactured housing industry, sales growth and profitability. 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 profit 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.