Modern Technology Cp (MODC)

[lifegear]

per last 10QSB 2007...."InMarketing Group Inc.



On December 20, 2005, we acquired 51% of the outstanding common stock of InMarketing Group Inc. (IMG) for $1,000,000 in cash and $1,210,000 in the form of Series B 4% convertible preferred stock of the Company, with an option to acquire the remaining 49%. The option is valid through December 19, 2007. InMarketing has informed us that it believes the option to purchase the additional 49% is no longer valid, and that we now only own 29% of InMarketing. The Company disputes the position taken by InMarketing with regards to the ownership interest and the rights with regards to the option. InMarketing has refused to provide financial information to be included in this filing. As a result, the financial information provided herein does not include any income or expenses generated by InMarketing. We intend to distribute shares of inmarketing to all stockholders of MODC as soon as practicable."