The Morgan Group, Inc. Announces
New Bank Credit Facility

BALTIMORE--(BUSINESS  WIRE)--Feb.  3, 1999--The  Morgan Group,  Inc.  (AMEX:MG -
news)  announced  today that it has obtained $20 million of bank  financing from
BankBoston,  N.A.  This  Agreement  consists of a  multi-year  revolving  credit
facility available for direct borrowings and stand-by letters of credit.

This facility will be used to replace the existing outstanding letters of credit
and provides for working capital needs and business growth.

Charles C. Baum,  Chairman and CEO stated,  "We are pleased to have  established
this relationship with BankBoston -- a premier lending  institution with special
expertise in our  industry.  This new bank  facility  provides The Morgan Group,
Inc. with significant flexibility to pursue growth opportunities and to buy back
additional common stock."

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  1,530 independent
owner-operators  and 1,420  other  drivers  dispatched  from 105  offices  in 33
states.  The Company also provides  insurance and financial services through its
wholly-owned subsidiaries, Interstate Indemnity and Morgan Finance, Inc.

Contact:

     The Morgan Group, Inc.
     Charles C. Baum, Chairman and CEO
     410/566-9200 Fax: 410/947-0612