Morgan Group Plans to File for Bankruptcy Protection

    ELKHART, Ind.--Oct. 4, 2002--The Morgan Group, Inc. (AMEX:MG), today reported that its Board of Directors passed a resolution for the Company and two of its operating subsidiaries to file for bankruptcy protection within the next few days.
    The Morgan Group, Inc. and two of its wholly-owned operating subsidiaries, Morgan Drive Away, Inc. and TDI, Inc., intend to pursue a Chapter 11 liquidation of all assets and liabilities.
    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 by federal law 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.