[THE MORGAN GROUP, INC. LETTEREHEAD]

                            ANNOUNCES APPOINTMENT OF
                                EDWARD CHARLESTON
                   PRESIDENT & CEO OF MORGAN DRIVE AWAY, INC.

     Baltimore,  Maryland - July 29, 1998 - The Morgan  Group,  Inc.,  (AMEX:MG)
today named Edward Charleston as President and Chief Executive Officer of Morgan
Drive Away, Inc. ("MDA") the principal operating subsidiary of The Morgan Group,
Inc.

     Mr.  Charleston,  51, joined MDA in 1993 as Senior Vice  President of MDA's
Manufactured  Housing  Group  where he assisted  with  Morgan's  initial  public
offering.  He was  promoted to President of the  Manufactured  Housing  Group in
June, 1995. Mr. Charleston succeeds Terence L. Russell who is leaving his Morgan
post to head a privately owned start-up company.

     Charles C. Baum,  Chairman and CEO of The Morgan Group  stated,  "Morgan is
fortunate  and  pleased to be able to promote  such a qualified  candidate  from
within the  Company's  strong  management  team.  Since joining  Morgan,  Ed has
demonstrated significant expertise in the transportation service industry. Under
his  leadership  our  shipments  of  manufactured  housing  units have more than
doubled in the past five years, our manufactured housing revenues have more than
tripled to over $93  million,  and we have seen our market share  increase  from
approximately  20  percent  when Ed joined  the  Company in 1993 to just over 27
percent last year."

     "The Morgan Group is committed to sustaining growth in revenue and earnings
and our  management  team is now  better  positioned  than ever to carry out our
strategic objectives. Just this past November we added Dennis R. Duerksen to the
senior  management team as Chief Financial  Officer,  and have been very pleased
with the talent he has brought to our Company. Dennis will continue to report to
me as well as the audit  committee of the Board and will work closely with Ed to
carry out our profit initiatives," continued Mr. Baum.

     Prior to joining  Morgan,  Mr.  Charleston  has held several  progressively
senior  positions  in  companies  such as American  President  Companies,  LTD.;
Logistics Express,  Inc.; and NorthAmerican Van Lines. Mr.  Charleston,  holds a
Bachelor of Arts Degree from Michigan State  University.  He and his wife, Ruth,
have three children.

     The Morgan Group, Inc. is the nation's leader in providing  services to the
manufactured  housing  industry  and  arranges  as  well  for  the  movement  of
commercial  vehicles,  office  trailers,  and a variety  of other  vehicles  and
freight.  The Company has a national network of approximately  1,590 independent
owner-operators  and 1,350  other  drivers  dispatched  from 112  offices  in 32
states.  The Company also provides  insurance and financial services through its
wholly-owned subsidiaries, Interstate Indemnity and Morgan Finance, Inc.

                                   **********
                        Contact:        Charles C. Baum
                                        Chairman and CEO
                                        The Morgan Group, Inc.
                        Telephone:      (410) 566-9200
                        Fax:            (410) 947-0612

Release:  98.6