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The Morgan Group, Inc., Announces Management Promotion

26 August 1999

The Morgan Group, Inc., Announces Management Promotion and Outlook for Second-half 1999

    BALTIMORE, Md.--Aug. 26, 1999--The Morgan Group, Inc. (AMEX:MG), today announced that Mr. James Nywening, 36, has been named Senior Vice President of Specialized Outsourcing Services (SOS) for the Company. In his new position, Mr. Nywening is accountable for the group's day-to-day operations as well as sales and safety initiatives.
    Mr. Nywening joined Morgan Drive Away in 1988 in the Accounting department and progressed through a succession of positions with increasing responsibilities, most recently serving as Vice President of Marketing for the Company. He is a graduate of Calvin College, Grand Rapids, Michigan, where he received his Bachelor's degree in Accounting.
    Charles C. Baum, Morgan Group Chairman and Chief Executive Officer, said, "We are very pleased to promote Jim to lead our SOS team. As an 11-year veteran of Morgan, he brings to his new role a wealth of experience that we believe will serve to guide the SOS operation's continued growth and enhance the unit's profitability. This is an important area for our Company, especially given the opportunities we see in the driver outsourcing industry, where estimates place the total market at $500 million in annual sales. While our SOS division has grown its revenue line at a rapid pace, we need more focus on costs and improved profitability.
    "Jim's appointment is particularly timely in light of the challenges we now face in our operating businesses. We are currently experiencing a slowdown in common with major customers in our manufactured housing operation. While it is still early in the period, it appears likely that we will not match the financial performance we reported for the second half of 1998," concluded Mr. Baum.
    The Morgan Group, Inc., is the nation's largest Company managing the delivery of manufactured homes, commercial vehicles and specialized equipment in the United States. The company has a national network of approximately 1,530 independent owner-operators and 1,810 other drivers dispatched from 108 offices in 32 states. The Company also provides insurance and financial services through its wholly owned subsidiaries, Interstate Indemnity and Morgan Finance, Inc.
    This press release contains forward-looking statements, including initiatives relating to profitability. Such statements are subject to a number of material factors which 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.