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Modern Technology Makes Tender Offer To Buy Harvey Electronics

4/04/2006 03:32:00 PM Eastern

Oxford, Mo. — Modern Technology, a diversified technology and development company based here, is initiating a tender offer to acquire Harvey Electronics, the New York metro area A/V specialty chain.

Modern Technology has offered to purchase 51 percent of Harvey’s common stock for $1.15 per share in cash and stock, representing a premium of $0.50 a share over the company’s present share price of $0.65.

“We feel this to be an outstanding offer to current Harvey Electronics shareholders,” said Anthony Welsh, chairman of Modern Technology. Welsh promised stockholders a “new and more powerful combined organization, with far greater market liquidity, a fantastic vision, a model of continuous growth” and expectations of $65 million in profitable revenue for 2006.

Harvey has asked its shareholders to take no action until the company’s board can obtain and review more specific terms of offer, said chairman Michael Recca.