Morgan Group, Inc. Announces Restructure Plan and Sale of Manufactured Housing Division

    ELKHART, Ind.--Aug. 15, 2002--The Morgan Group, Inc. (AMEX:MG), today announced a significant Company restructuring designed to bring improvements to the Company's operating profitability and cash flow.
    Morgan has sold for cash its Manufactured Housing Division to Bennett Truck Transport, L.L.C. effective immediately. Morgan has experienced repeated losses in the Manufactured Housing Division, the result of a weak market in the manufactured housing industry coupled with dramatic increased costs for liability insurance.
    Morgan's exit from the manufactured housing market will allow the Company to focus on its three remaining operating divisions. The Company delivers motor homes, commercial trucks, buses, construction equipment, delivery vans and other motorized equipment for customers in its Vehicle Delivery Division. A fleet of independent contractors delivers travel trailers and other towables in the Company's Pickup Division. Morgan also offers Class 8 commercial truck "power-only" service to deliver customer trailers in its Towaway Division.
    Morgan's Chief Executive Officer, Anthony T. Castor, III, commenting on the restructuring: "The sale of the manufactured housing division will focus the Company on the three divisions of Morgan that have the most potential for accelerating profitability. We are focused on near-term profitability and cash flow and building a base for long-term growth in more stable markets. We are very excited about the new Morgan and its focus on becoming a leading profitable specialty transportation services company."
    The Company's Vehicle Delivery and Pickup Divisions have experienced increased revenue in the first six months of 2002 primarily related to increased demand for new recreational vehicles which are a mainstay for those divisions. In addition, the Company has acquired new business in 2002 in all three divisions that has added incremental revenue.

    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.