SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            Form 10-K


      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES ACT OF 1934 (Fee Required)


For The Fiscal Year                Commission File #2-80891-NY
Ended June 30, 1998

                     MODERN TECHNOLOGY CORP.
                                                                  
     (Exact Name of Registrant as Specified in its Charter)


Nevada                                       11-2620387
                                                                  
(State or other jurisdiction of              (I.R.S. Employer
Incorporation or Organization)               Identification Number)


          240 Clarkson Avenue, Brooklyn, New York 11226
                                                                  
     (Address of Principal Executive Office)           (Zip Code)


                          (718)469-3132
                                                                  
      (Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities and Exchange Act of 1934 during the preceding twelve
months and (2) has been subject to such filing requirements for the
past ninety days.

Yes     X                                              No         

Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 or Regulation S-K is not contained herein, and will not
be contained, to the best of Registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K.    X   

As of September 23, 1998, there was no aggregate market value of
the voting stock held by non-affiliates of the Registrant due to
the fact that there was no trading market in the shares of the
Registrant.

The Number of Shares Outstanding of Common Stock $.0001 par value
at September 23, 1998 was 20,150,000.

                             PART 1

1.  Business

     The Registrant is engaged in aiding prospective clients in
obtaining financing and in providing managerial services to client
companies.  During the year ended June 30, 1997, the Registrant was
involved in providing managerial services to Davin Enterprises Inc.
("Davin") which it also had aided in obtaining financing.  The
Registrant received managerial fees of $3,200 from Davin during the
year ended June 30, 1998.

     Presently, the Registrant is seeking out joint venture
candidates and companies for which it can aid in providing
financing and managerial services although no assurances can be
given that the Registrant will be successful in gaining new clients
in the near future.

     During December 1996 the Registrant purchased 403,000 shares
of Coral Development Corp. for $30,300.  The Registrant has
registered these shares with the Securities and Exchange Commission
with the intention to distribute those shares to the Registrant's
shareholders in the form of a dividend.  This distribution can only
be made after a merger agreement with a private company is signed
and at least 80% of the Registrant's shareholders approve such
merger.  On July 22, 1998, Coral has signed a merger agreement with
OmniComm Systems Inc., a company in the computer software field. 
No assurance can be given that a merger agreement will be signed
and that at least 80% of the shareholders of the Registrant will
approve such merger agreement.

     During the year ended June 30, 1996, the Registrant purchased
25,000 shares of Delta Three Inc. for $25,000-.  Delta Three Inc.
is a telecommunications provider, using Internet technology for
voice transmission.  During the quarter ended September 30, 1997
the Registrant sold its 25,000 shares of Delta Three Inc. for
$50,000.

     During the fiscal year ended June 30, 1998, the Registrant had
net income of $16,198.  Its revenue for the year ended June 30,
1998 was derived from management income amounting to $3,200,
interest income of $32,726 and a gain on securities sales of
$67,065.  Total revenues for the year ended June 30, 1998 amounted
to $102,991.

Item 2.  Properties.

     As of June 30, 1998, the Registrant owned no property.  The
Registrant utilizes some space in the offices of Lite King Corp.,
an affiliated company.

Item 3.  Legal Proceedings.

     None


Item 4.  Submission of Matters to a Vote of Security Holders.

     None

                             PART II

Item 5.   Market for Registrant's Common Equity and Related
          Stockholders Matters.

     During the past three fiscal years there was no market for the
shares of the Registrant.

Number of Shareholders - 372 shareholders of record of 9/23/98.

Dividends - None paid.

Item 6.   Selected Financial Data

                           for the Year ended June 30,
                   1998     1997     1996      1995      1994 

Total Revenues    $102,991 $72,985  $40,449  $40,708   $31,278
Operating Income
 (Loss)             28,160   6,388   (2,709) (14,375)  (10,694)
Net Income (Loss)   16,198  11,925   (3,720) (14,375)  (10,694)
Net Income (Loss)
 per share           NIL      NIL      NIL      NIL       NIL
Total Assets       752,417 731,238  718,443  721,014   735,389
Long Term Debt        -0-      -0-      -0-      -0-       -0-
Dividends             -0-      -0-      -0-      -0-       -0-

Item 7.   Management's Discussion and Analysis of Results of
          Operations.

     The Registrant had net income after taxes of $16,198 for the
year ended June 30, 1998.  Net income after taxes for the year
ended June 30, 1997 amounted to $11,925.

     Fiscal year 1998 revenues and income was influenced by
interest income, management income and gains from the sale of
securities.  During fiscal year 1998, the revenues amounted to
$102,991 as compared with fiscal year 1997 revenes of $72,985. 
Operating expenses rose in fiscal year 1998 as compared with the
comparative fiscal year 1997 figure.  The net income figure for
fiscal year 1998 was principally due to the sale of securities
(Delta Three and Havenwood Corp. shares).

     The Registrant received monthly management fees of $3,200 from
Davin for the fiscal year ended June 30, 1998.  The Registrant
provided administrative, clerical, bookkeeping and other services
to Davin.  The agreement was terminated December 31, 1997.  At June
30, 1998, the Registrant owned 50,100 restricted shares of Creative
Master International Inc. (formerly Davin Enterprises Inc.), at a
cost of $7,950, representing less than 1% of the total shares of
Creative outstanding.  Davin Enterprises Inc. merged with Creative
Master International Inc. in December 1997.

     During December 1996 the Retistrant purchased 403,000 shares
of Coral Development Corp. for $30,300.  The Registrant has
registered these shares with the Securities and Exchange Commission
with the intention to distribute those shares to the Registrant's
shareholders in the form of a dividend.  This distribution can only
be made after a merger agreement with a private company is signed
and at least 80% of the Registrant's shareholders approve such
merger.  In July 1998 Coral merged with Omnicomm Systems Inc. a
computer software company.  No assurance can be given that a merger
agreement with OmniComm Systems Inc. will be completed and that at
least 80% of the shareholders of the Registrant will approve such
merger agreement.

     The Company purchased an investment in TTR Inc., a 10%
promissory note in the amount of $25,000 with warrants for 4,000
shares exercisable at $.01 at the time of a TTR initial public
offering.  TTR Inc. incorporated for the purpose of designing,
developing, and marketing computer software products.  During the
quarter ended March 31, 1997, TTR completed its initial public
offering and repaid the note with interest.  The Company also
exercised its warrants and realized a gain of $29,940 in the year
ended June 30, 1997.

     The Company purchased 25,000 shares of Delta Three Inc. for
$25,000.  Delta Three, Inc. is a telecommunications provider using
Internet technology for voice transmission.  This investment was
sold during the year ended June 30, 1998.

     During the year ended June 30, 1997 the Registrant recognized
a complete loss on its investment and loan to Soft Sail Wind Power
Inc. (Soft Sail).  At the present time the Registrant does not
believe Soft Sail will be able to repay its debt to the Company and
has therefore considered its debt and equity investment in Soft
Sail to be worthless.  The loss on the loan was $11,400 and the
loss in fiscal year 1997 on its equity investment was $16,005.

     At June 30, 1998 the Registrant's total assets amounted to
$752,417 and as compared with $731,238 for total assets at June 30,
1997.  At June 30, 1998, stockholders' equity amounted to $744,217,
as compared with $728,019 at June 30, 1997.

Item 8.   Financial Statements.

     Attached.

Item 9.   Changes In and Disagreement With Accountants on
          Accounting and Financial Disclosure.

     None.
Year 2000 Issue

     The Company has evaluated the impact of the Year 2000 issue on
the business and does not expect to incur significant costs with
Year 2000 compliance.  The Company believes that all software and
hardware requirements to enable it to cope with the Year 2000 issue
have been or are being currently implemented.  However, there can
be no assurance that unanticipated costs may arise in implementing
these requirements.

                            PART III

Item 10.  Directors and Executive Officers.

     The executive officers and directors of the Registrant are as
follows:

Name                Age  Title                    Term Expires

Arthur Seidenfeld   47   President and            Next Annual
                         Director                 Meeting
Anne Seidenfeld     85   Treasurer, Secretary     Next Annual
                         and Director             Meeting
Gerald Kaufman      57   Director                 Next Annual
                                                  Meeting

     Each of the above named individuals has served the Registrant
in the capacity indicated since its formation on July 27, 1982
(with the exception of Anne Seidenfeld who became a director of the
Registrant on March 31, 1989 and treasurer on December 17, 1989 and
Gerald Kaufman who became a director in 1990.

     Arthur Seidenfeld, has been president and a director of the
Registrant since its formation.  Mr. Seidenfeld was awarded a B.S.
Degree in Accounting from New York University in 1972 and a M.B.A.
Degree in Finance in 1978 from Pace University.

     He is also president and director of Daine Industries, Inc.,
a publicly traded company which through its wholly owned
subsidiary, Lite King Corp, is engaged in the manufacture of wiring
devices.  He was also president and director of Davin Enterprises,
Inc. (a publicly traded company that went public in Sept. 1987)
from 1987 until December 1997 when Davin merged with Creative
Masters International Inc., a manufacturer of replica cars.  From
July 1994 until April 1997, he was also treasurer-secretary of Soft
Sail Wind Power Inc., a newly established company engaged in wind
energy research and development activities.  Since December 1996,
he has been president and director of Coral Development Corp., a
public company which signed a merger agreement in July 1998 with
Omnicomm Systems Inc., a company in the computer software field.

     Anne Seidenfeld, Treasurer, Secretary and Director, received
her diploma from Washington Irving High School, New York City, in
1931.  Mrs. Seidenfeld is the Treasurer, Secretary and Director of
Daine Industries, Inc. and Coral Development Corp and was
Treasurer, Secretary and Director of Davin Enterprises Inc. from
1987 until December 1997.

     Gerald Kaufman, Director, has been a practicing attorney for
over twenty five years.  He has served as a director of the
Registrant, along with being a director of Daine Industries Inc.
since November 1990.  He has also been a director of American
Mayflower Life Insurance Co. since 1973.

     Arthur Seidenfeld is the son of Anne Seidenfeld.

Item 11.  Management-Remuneration and Transactions.

     During the fiscal year ended June 30, 1998, management
salaries were as follows:

     Anne Seidenfeld - Treasurer-Secretary $7,200
     Arthur Seidenfeld - President $17,300

     Anne Seidenfeld, the Company's treasurer and secretary,
pursuant to an oral agreement with the Company earned $7,200 as an
annual salary effective through June 30, 1998.

                             PART IV

Item 12.  Security Ownership of Certain Beneficial Owners and
          Management.

     a. The following are known to Registrant to be beneficial
owners of 5% or more of the Registrant's common stock.

Title of Class
Common Stock

Name of Beneficial Owner      Amount & Nature of       Percentage
                              Beneficial Ownership      of Class

Arthur Seidenfeld
461 Beach 124 Street
Belle Harbor, New York              9,654,820             47.9%

Anne Seidenfeld
461 Beach 124 Street
Belle Harbor, New York              2,426,500             12.0%

All Officers and
Directors as a Group (3)           12,081,320             59.9%
     b. The shares owned by management are as follows:

Common Stock.

Name of Beneficial Owner      Amount & Nature of       Percentage
                              Beneficial Ownership      of Class

Arthur Seidenfeld                   9,654,820             47.9%
Anne Seidenfeld                     2,426,500             12.0%

Item 13.  Certain Relationships and Related Transactions:

     For the year ended June 30, 1998, the Registrant received
management fees from Davin Enterprises, Inc. amounting to $3,200. 
Arthur Seidenfeld, President and a director of the Registrant owns
44,063 of the outstanding shares of Davin Enterprises, Inc.  Anne
Seidenfeld, Treasurer-Secretary and a director of the Registrant
owns 5,470 of the outstanding shares of Davin Enterprises, Inc. 
Davin Enterprises Inc.'s name was changed to Creative Master
International Inc. after Creative Master Inc. merged with Davin
Enterprises Inc.

                     MODERN TECHNOLOGY CORP.
           INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
           FILED WITH THE ANNUAL REPORT OF THE COMPANY
                          ON FORM 10-K

ITEM 14 - EXHIBITS

     Financial Statements and Schedules and Reports on Form 8-K.

ACCOUNTANT'S REPORT
BALANCE SHEET AS OF JUNE 30, 1998 AND JUNE 30, 1997
STATEMENT OF STOCKHOLDERS' EQUITY FOR THE PERIOD JULY 1, 1995 TO
  JUNE 30, 1998
STATEMENT OF OPERATIONS FOR THE YEARS ENDED JUNE 30, 1998, 1997 AND
  1996
STATEMENT OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 1998, 1997 AND
  1996
NOTES TO FINANCIAL STATEMENTS

Other schedules not submitted are omitted, because the information
is included elsewhere in the financial statements or the notes
thereto, or the conditions requiring the filing of these schedules
are not applicable.

Supplemental information to be furnished with reports filed
pursuant to Section 15(d) of the Securities Act of 1934 by
Registrant which have not registered securities pursuant to Section
12 of the Securities Act of 1934.

a)  No annual report or proxy material has been sent to security
holders.  When such report or proxy materials are furnished to
securities holders subsequent to the filing of this report, copies
shall be furnished to the Commission when sent to securities
holders.















                    MODERN TECHNNOLOGY CORP.

                      FINANCIAL STATEMENTS

                     JUNE 30, 1998 AND 1997









                            I N D E X





                                                            Page


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS            1


CONSOLIDATED BALANCE SHEETS                                   2


CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY                3


CONSOLIDATED STATEMENTS OF OPERATIONS                         4


CONSOLIDATED STATEMENTS OF CASH FLOWS                         5


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS               6-10










       REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS




Board of Directors and Stockholders
MODERN TECHNOLOGY CORP.
Belle Harbor, New York  11694


We have audited the accompanying consolidated balance sheets of
MODERN TECHNOLOGY CORP. as at June 30, 1998 and 1997 and the
related consolidated statements of operations and stockholders'
equity and cash flows for each of the three years in the period
ended June 30, 1998.  These financial statements are the
responsibility of the company's management.  Our responsibility is
to express an opinion on these financial statements based upon our
audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statements presentation.  We believe that our audits
provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements enumerated
above present fairly, in all material respects, the consolidated
financial position of MODERN TECHNOLOGY CORP. at June 30, 1998 and
1997, and the consolidated results of its operations and cash flows
for the three years in the period ended June 30, 1998, in
conformity with generally accepted accounting principles.




                                   GREENBERG & COMPANY LLC

Springfield, New Jersey
August 6, 1998


                                                    Page 1 of 10
                          MODERN TECHNOLOGY CORP.
                        CONSOLIDATED BALANCE SHEETS


                                                            June 30,     
                                                        1998       1997  


                                A S S E T S


CURRENT ASSETS
  Cash and Cash Equivalents                           $701,275   $647,886

EQUIPMENT - At Cost                                      9,939      9,939
  Less:  Accumulated Depreciation                        9,939      9,939
                                                           -0-        -0-

OTHER ASSETS
  Investments, At Cost                                  24,750     49,770
  Deferred Tax Asset                                       -0-      7,375
  Deferred Registration Costs                           26,007     25,907
  Other Assets                                             385        300
                                                        51,142     83,352


TOTAL ASSETS                                          $752,417   $731,238



  L I A B I L I T I E S   A N D   S T O C K H O L D E R S'   E Q U I T Y


CURRENT LIABILITIES
  Accrued Expenses and Taxes                          $  8,200   $  3,219

STOCKHOLDERS' EQUITY
  Common Stock Par Value $.0001
    Authorized:  150,000,000 Shares
    Issued and Outstanding:  20,150,000
      Shares                                             2,015      2,015
  Paid-In Capital                                      495,161    495,161
  Retained Earnings                                    247,041    230,843
                                                       744,217    728,019


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $752,417   $731,238







The accompanying notes are an integral part of these financial statements.


                                                                 Page 2 of 10
                          MODERN TECHNOLOGY CORP.
              CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
               FOR THE PERIOD JULY 1, 1995 TO JUNE 30, 1998



                                                                   Total
                                    Par               Retained     Stock-
                        # of       Value   Paid-In    Earnings   holders'
                       Shares     $.0001   Capital    (Deficit)   Equity


BALANCES AT
JULY 1, 1995         20,150,000   $2,015   $495,161   $222,638   $719,814

Net Income (Loss)
for the Year Ended
June 30, 1996                                           (3,720)    (3,720)

BALANCES AT
JUNE 30, 1996        20,150,000    2,015    495,161    218,918    716,094

Net Income (Loss)
for the Year Ended
June 30, 1997                                           11,925     11,925

BALANCES AT
JUNE 30, 1997        20,150,000    2,015    495,161    230,843    728,019

Net Income (Loss)
for the Year Ended
June 30, 1998                                           16,198     16,198


BALANCES AT
JUNE 30, 1998        20,150,000   $2,015   $495,161   $247,041   $744,217


















The accompanying notes are an integral part of these financial statements.


                                                                 Page 3 of 10
                          MODERN TECHNOLOGY CORP.
                   CONSOLIDATED STATEMENTS OF OPERATIONS



                                          For The Years Ended June 30,   
                                       1998          1997          1996  


REVENUES

  Interest Income                    $ 32,726      $33,445       $30,849

  Management Income                     3,200        9,600         9,600

  Gain on Securities Sales             67,065       29,940           -0-

                                      102,991       72,985        40,449

EXPENSES

  Officers' Salaries                   24,500        7,200         7,200

  General and Administrative
    Expenses                           50,331       31,992        26,472

  (Loss) on Worthlessness of
   Affiliate                              -0-      (27,405)          -0-

  Equity in (Loss) of
   Affiliated Company                     -0-          -0-        (9,486)
                                       74,831       66,597        43,158

INCOME (LOSS) BEFORE TAXES             28,160        6,388        (2,709)

OTHER EXPENSES & TAXES

  Income Tax (Expense) Benefit         11,962        5,537        (1,011)


NET INCOME (LOSS)                    $ 16,198      $11,925       $(3,720)
  
INCOME (LOSS) PER SHARE                 NIL           NIL           NIL  

NUMBER OF WEIGHTED AVERAGE
  SHARES OUTSTANDING               20,150,000    20,150,000    20,150,000








The accompanying notes are an integral part of these financial statements.


                                                                 Page 4 of 10
                          MODERN TECHNOLOGY CORP.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS



                                           For The Years Ended June 30, 
                                             1998       1997       1996 


CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income (Loss)                         $ 16,198   $ 11,925   $ (3,720)
 Adjustments to Reconcile Net Income
  to Net Cash Provided By (Used In)
  Operating Activities:
   Changes in Assets and Liabilities:
    Decrease (Increase) In Deferred Taxes     7,375     (7,375)       -0-
    Decrease (Increase) in Deferred
     Registration Costs                        (100)   (25,907)       -0-
    Decrease (Increase) in Other Assets         (85)      (300)       -0-
    Increase (Decrease) Accrued
      Expenses and Taxes                      4,981        870      1,149

 Net Cash Provided By (Used In)
  Operating Activities                       28,369    (20,787)    (2,571)

CASH FLOWS FROM INVESTING ACTIVITIES:
 Write Down of Investments and Loan             -0-     27,405      9,486
 Purchase (Sale) of Securities               25,020     25,000    (25,000)
 Loan - Affiliate                               -0-        -0-    (11,400)
  Net Cash (Used In) Provided By
   Investing Activities                      25,020     52,405    (26,914)

Net Increase (Decrease) in Cash 
 and Cash Equivalents                        53,389     31,618    (29,485)

Cash and Cash Equivalents,
 Beginning of Year                          647,886    616,268    645,753


CASH AND CASH EQUIVALENTS,
 END OF YEAR                               $701,275   $647,886   $616,268



Supplemental Disclosures Of Cash Flow Information

 Cash Paid During The Period For:
  Taxes                                    $  2,806   $    623   $    -0-
  Interest                                 $    -0-   $    -0-   $    -0-





The accompanying notes are an integral part of these financial statements.


                                                                 Page 5 of 10
                        MODERN TECHNOLOGY CORP.
            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED JUNE 30, 1998 AND 1997

NOTE 1:   ORGANIZATION AND NATURE OF OPERATIONS

          Modern Technology Corp. (Modern) is a Nevada corporation. 
          Modern is engaged in aiding prospective clients in obtaining
          financing and in providing managerial services to client
          companies.  Modern's office is located in New York. 
          

NOTE 2:   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          ACCOUNTING POLICIES

          Modern Technology Corp.'s accounting policies conform to
          generally accepted accounting principles.  Significant
          policies followed are described below.

          BASIS OF PRESENTATION

          The accompanying consolidated financial statements include the
          accounts of its wholly owned subsidiary Coral Development Corp
          (Coral).  All significant intercompany balances and
          transactions have been eliminated in consolidation.  Modern
          invested $30,300 in Coral during the quarter ended December
          31, 1996.

          RECLASSIFICATIONS

          Certain items from prior periods within the financial
          statements have been reclassified to conform to current period
          classifications.

          CASH AND CASH EQUIVALENTS

          Cash equivalents consist of highly liquid, short-term
          investments with maturities of 90 days or less.  The carrying
          amount reported in the accompanying balance sheets
          approximates fair value.

          ESTIMATES IN FINANCIAL STATEMENTS

          The preparation of financial statements in conformity with
          generally accepted accounting principles requires management
          to make estimates and assumptions that affect the reported
          amounts of assets and liabilities at the date of the financial
          statements and the reported amounts of revenues and expenses
          during the reporting period.  Actual results could differ from
          those estimates.

          INCOME TAXES

          The Company accounts for income taxes in accordance with
          Statement of Financial Accounting Standards ("SFAS") No. 109,
          "Accounting for Income Taxes."  SFAS 109 has as its basic
          objective the recognition of current and deferred income tax
          assets and liabilities based upon all events that have been
          recognized in the financial statements as measured by the
          provisions of the enacted tax laws.
                                                       Page 6 of 10
                        MODERN TECHNOLOGY CORP.
            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
                              (Continued)

          Valuation allowances are established when necessary to reduce
          deferred tax assets to the estimated amount to be realized. 
          Income tax expense represents the tax payable for the current
          period and the change during the period in the deferred tax
          assets and liabilities.

          DEFERRED REGISTRATION COSTS

          As of June 30, 1998, the Company's subsidiary, Coral, has
          incurred deferred registration costs of $26,007 relating to
          expenses incurred in connection with the Proposed Distribution
          of Coral's securities.  Upon consumation of this Proposed
          Distribution, the deferred registration costs will be charged
          to equity.  Should the Proposed Distribution prove to be
          unsuccessful, these deferred costs, as well as additional
          expenses to be incurred, will be charged to operations.

          YEAR 2000 COMPLIANCE

          The Company has evaluated the impact of the Year 2000 issue on
          the business and does not expect to incur significant costs
          with Year 2000 compliance.  The Company believes that all
          software and hardware requirements to enable it to cope with
          the Year 2000 issue have been or are being currently
          implemented.  However, there can be no assurance that
          unanticipated costs may arise in implementing these
          requirements.

NOTE 3:   INVESTMENT IN EQUITY SECURITIES (At Cost)

          Investments in Non Marketable Equity Securities consist of the
          following:
                                        June 30,   June 30,
                                          1998       1997  
          Investment in 25,000 Shares
          of Delta Three, Inc.          $   -0-    $25,000

          Investment in 72 million
          restricted shares in
          Daine Industries, Inc.         15,900     15,900

          Investment in 50,100
          restricted shares in
          Creative Master
          International Inc.
          (formerly Davin
          Enterprises Inc.)               7,950      7,950

          Investments in other
          restricted securities             900        920

                                        $24,750    $49,770




                                                   Page 7 of 10
                        MODERN TECHNOLOGY CORP.
            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
                              (Continued)

          The Company purchased 72 million shares of Daine Industries,
          Inc. stock at a cost of $15,900.  This represents 29% of the
          total outstanding shares of common stock.

          The Company purchased 50,100 shares of Creative Master
          International Inc. (formerly Davin Enterprises, Inc.) at a
          cost of $7,950.

          The Company purchased an investment in TTR Inc., a 10%
          promissory note in the amount of $25,000 with warrants for
          4,000 shares exercisable at $.01 at the time of a TTR initial
          public offering.  TTR Inc. incorporated for the purpose of
          designing, developing, and marketing computer software
          products.  During the quarter ended March 31, 1997, TTR
          completed its initial public offering and repaid the note with
          interest.  The Company also exercised its warrants and
          realized a gain of $29,940 in the year ended June 30, 1997.

          The Company purchased 25,000 shares of Delta Three Inc. for
          $25,000.  Delta Three, Inc. is a telecommunications provider
          using Internet technology for voice transmission.  This
          investment was sold during the year ended June 30, 1998.

NOTE 4:   INVESTMENT IN AFFILIATE

          Investment in Soft Sail Wind Power Inc. (Soft Sail)
          (representing approximately 36% of the outstanding common
          stock).

          The summarized unaudited financial information below
          represents the Company's nonsubsidiary affiliate:

          Balance Sheet Data at June 30, 1996
            Total Assets                           $12,656
            Total Liabilities                       11,400
              Net Assets                             1,256
            Company's Equity in Net Assets             452

          Earnings Data
            Net Earnings (Loss)                    (26,350)
            Company's Equity in Net 
              Earnings (Loss)                       (9,486)

          During the year ended June 30, 1997 the Company recognized a
          complete loss on its investment and loan to Soft Sail.  There
          is no financial information available since June 30, 1996.  At
          the present time the Company does not believe Soft Sail will
          be able to repay its debt to the Company and has therefore
          considered its debt and equity investment in Soft Sail to be
          worthless.  The loss on the loan was $11,400 and the loss on
          its equity investment was $16,005.  Both of these losses were
          recognized during the year ended June 30, 1997.




                                                       Page 8 of 10
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
                           (Continued)

NOTE 5:   INCOME TAXES

          The provision for income taxes is comprised of the
          following:
                                       6/30/98  6/30/97  6/30/96
            Current                    $ 4,587  $ 1,838  $1,011
            Deferred                     7,375   (7,375)    -0-
                                       $11,962  $(5,537) $1,011

          The provision for income taxes differs from the amount
          computed by applying the statutory federal income rate as
          follows:
                                       6/30/98  6/30/97  6/30/96
            Expected statutory amount  $ 3,200  $   781  $1,011
            Net operating loss           7,375   (7,375)    -0-
            State income taxes, net
             of federal benefit          1,387    1,057     -0-
                                       $11,962  $(5,537) $1,011

          Deferred income taxes reflect the net tax effects of
          temporary differences between the carrying amounts of
          assets and liabilities for financial reporting purposes
          and amounts used for income tax purposes and the impact
          of available net operating loss carryforwards.  The net
          operating loss, of Coral, of approximately $9,000 will
          expire in fiscal year June 30, 2013.  The related tax
          asset of $1,323 has been fully reserved since it is
          highly uncertain if Coral will realize this benefit.

          The tax effect of significant temporary differences,
          which comprise the deferred tax assets are as follows:

                                       6/30/98  6/30/97  6/30/96
          Deferred tax assets:
            Net operating loss
             carry forwards            $1,323   $ 7,375  $-0-
            Valuation allowance        (1,323)      -0-   -0-
            Net deferred tax (assets)  $  -0-   $(7,375) $-0-

NOTE 6:   POSTRETIREMENT BENEFITS

          The company does not maintain any employee benefits
          currently.  The company does not maintain a plan for any
          postretirement employee benefits, therefore, no provision
          was made under FAS's 106 and 112.











                                                Page 9 of 10
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
                           (Continued)

          
NOTE 7:   RELATED PARTY TRANSACTIONS

          Arthur Seidenfeld, President and a director of the
          Company, owns 14.5% of the outstanding shares of Daine
          Industries, Inc.  Anne Seidenfeld, Treasurer, Secretary
          and a director of the Company, owns approximately 8% of the
          outstanding shares of Daine Industries, Inc.  Anne
          Seidenfeld is Arthur Seidenfeld's mother.  There were no
          related party transactions.















































                                                    Page 10 of 10

                                  SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Act
of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                            MODERN TECHNOLOGY CORP.


                              By Arthur J. Seidenfeld
                                 President, Principal Executive Officer
                                 and Principal Financial Officer
                                 Dated:  September 23, 1998



Pursuant to the requirements of the Securities Act of 1934, this report has been
signed below by the following persons on behalf of the Registrant and in the
capacities and on the date indicated.


Name                  Title                             Date


Arthur Seidenfeld     President and Director            September 23, 1998


Anne Seidenfeld       Treasurer, Secretary              September 23, 1998
                      and Director


Gerald Kaufman        Director                          September 23, 1998