Morgan Group Suspends Transportation Operations

    ELKHART, Ind.--Oct. 3, 2002--The Morgan Group, Inc. (AMEX:MG) announced today the suspension of operations for its two transportation operating subsidiaries.
    The Morgan Group, Inc. has two wholly-owned operating subsidiaries, Morgan Drive Away, Inc. and TDI, Inc., of which both subsidiaries participate in the vehicle delivery business.
    The Company's liability insurance expired at 12:01 a.m. on October 3, 2002 and the Company has been unable to secure replacement liability insurance. The Company is required to cease operating motor vehicles without required minimum levels of liability insurance.
    This press release contains forward-looking statements. 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 are described in the Company's Form 10-K for 2001 filed with the Securities and Exchange Commission.