The Morgan Group Generates Cash Proceeds Through Warrant Issue

    ELKHART, Ind.--May 6, 2002--The Morgan Group, Inc. (AMEX:MG), the nation's largest company managing the delivery of manufactured homes, recreational vehicles and specialized equipment, today announced that the company received $535,331 cash proceeds through April 30, 2002 from exercise of Class A common stock warrants issued in December 2001.
    The warrants provided an opportunity to the holders of our Class A and Class B common stock at date of issuance to purchase one share of their same class of common stock at an exercise price of $9.00 per share through the five year exercise period.
    The Board of Directors of Morgan had approved a temporary reduction of the exercise price for Class A stockholders to $2.25 per share for the Temporary Reduction period from February 4, 2002 to April 30, 2002. The Company issued 237,925 new Class A common shares in connection with the exercise. At the close of the temporary reduction period, there remained 1,010,232 warrants to purchase Class A shares and 2,200,000 warrants to purchase Class B shares at the original terms.
    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.