SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the quarterly period ended September 30, 1998 or

/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the transition period from               to 

Commission file number 2-80891-NY

                     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 Ave  Brooklyn, New York 11226
                                                                  
(Address of Principal Executive Office)           (Zip Code)

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


     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 or for such shorter period that the Registrant was required
to file such reports, and (2) has been subject to such filing
requirements for the past ninety days.
Yes / X /  No /  /

  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                 DURING THE PRECEDING FIVE YEARS

     Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes /  /   No /  /

              APPLICABLE ONLY TO CORPORATE ISSUERS

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.  20,150,000

                              10Q-1













                     MODERN TECHNOLOGY CORP.

                      FINANCIAL STATEMENTS

                       SEPTEMBER 30, 1998






                            I N D E X




                                                            Page



ACCOUNTANTS' REVIEW REPORT                                    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               6-11






                   ACCOUNTANTS' REVIEW REPORT




To the Board of Directors and Stockholders
MODERN TECHNOLOGY CORP.
Brooklyn, New York  

We have reviewed the consolidated balance sheets of MODERN
TECHNOLOGY CORP. as at September 30, 1998, and the related
consolidated statements of operations, stockholders' equity and
cash flows for the three month periods ended September 30, 1998 and
1997, in accordance with standards established by the American
Institute of Certified Public Accountants.

A review of interim financial information consists principally of
obtaining an understanding of the system for the preparation of
interim financial information, applying analytical review
procedures to financial data, and making inquiries of persons
responsible for financial and accounting matters.  It is
substantially less in scope than an examination in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications
that should be made to the consolidated financial statements for
them to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet as of June 30,
1998, and the related consolidated statements of operations,
stockholders' equity and cash flows for the year then ended (not
presented herein); and in our report dated August 6, 1998, we
expressed an unqualified opinion on those financial statements.  In
our opinion, the information set forth in the accompanying balance
sheet as of June 30, 1998 is fairly stated in all material respects
in relation to the consolidated balance sheet from which it has
been derived.



                                   GREENBERG & COMPANY, LLC

Springfield, New Jersey
October 29, 1998


                                                     Page 1 of 11
                        MODERN TECHNOLOGY CORP.
                      CONSOLIDATED BALANCE SHEETS

                                      Sept. 30, 1998
                                        (Unaudited)    June 30, 1998


                              A S S E T S


CURRENT ASSETS
  Cash and Cash Equivalents              $699,229         $701,275
    Total Current Assets                  699,229          701,275

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


OTHER ASSETS 
  Investments, At Cost                     24,750           24,750
  Deferred Registration Costs              26,007           26,007
  Other Assets                                385              385
    Total Other Assets                     51,142           51,142


TOTAL ASSETS                             $750,371         $752,417


                                   
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             $ 10,000         $  8,200
    Total Current Liabilities              10,000            8,200

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 in Excess of Par        495,161          495,161
  Retained Earnings                       243,195          247,041
    Total Stockholders' Equity            740,371          744,217


TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                   $750,371         $752,417
  




Subject to the comments contained in the Accountants' Review Report.

                                                          Page 2 of 11
                     MODERN TECHNOLOGY CORP.
         CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
        FOR THE PERIOD JULY 1, 1996 TO SEPTEMBER 30, 1998



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





BALANCES AT
JULY 1, 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
(Audited)      20,150,000    2,015    495,161    247,041    744,217

Net Income(Loss) 
for the Three
Months Ended
Sept. 30, 1998                                    (3,846)    (3,846)


BALANCES AT 
SEPT. 30, 1998
(Unaudited)    20,150,000   $2,015   $495,161   $243,195   $740,371










Subject to the comments contained in the Accountants' Review Report.


                                                         Page 3 of 11
                        MODERN TECHNOLOGY CORP.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)



                                                     For The Three
                                                     Months Ended
                                                     September 30,   
                                                    1998       1997  


REVENUES

  Interest Income                                 $ 9,642    $ 6,412  
  Management Income                                   -0-      1,600
  Gain on Securities Sale                             -0-     67,065  
                                                    9,642     75,077  
  

EXPENSES

  Officers Salaries                                 1,200     17,800  
  General and Administrative Expenses              10,905      8,457  
                                                   12,105     26,257  
  

INCOME (LOSS) INCOME BEFORE TAXES                  (2,463)    48,820

Income Tax Expense                                  1,383     16,129  


NET INCOME (LOSS)                                 $(3,846)   $32,691  


NET INCOME (LOSS) PER SHARE                         NIL        NIL  


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













Subject to the comments contained in the Accountants' Review Report.


                                                         Page 4 of 11
                        MODERN TECHNOLOGY CORP.
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)



                                                   For The Three
                                                   Months Ended
                                                   September 30,    
                                                 1998        1997   


CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                            $  (3,846)  $  32,691  
  Adjustments to Reconcile Net
   Income to Net Cash Provided By
   Operating Activities:
    Changes in Assets and Liabilities:
     (Increase) Decrease in Income Tax
       Receivable                                    -0-      (7,378)  
     (Increase) Decrease in Deferred 
       Registration Costs                            -0-        (100) 
     (Decrease) Increase in Accrued
       Expenses and Taxes                          1,800      15,863  

  Net Cash (Used In) Provided By
   Operating Activities                           (2,046)     41,076  

CASH FLOWS FROM INVESTING ACTIVITIES:
  Loans to Affiliate                                 -0-         -0-
  Sale of Investments                                -0-      25,020 

  Net Cash Provided By (Used In)
   Investing Activities                              -0-      25,020  

Net (Decrease) Increase in Cash
  and Cash Equivalents                            (2,046)     66,096   
   

Cash and Cash Equivalents,
  Beginning of Period                            701,275     647,886  

CASH AND CASH EQUIVALENTS
  END OF PERIOD                                $ 699,229   $ 713,982  


Supplemental Disclosures of 
  Cash Flow Information
   Cash Paid During Period For:
     Taxes                                     $   1,383   $   8,113  
     Interest                                        -0-         -0-



Subject to the comments contained in the Accountants' Review Report.


                                               Page 5 of 11
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                       SEPTEMBER 30, 1998
                           (Unaudited)


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 the Company's 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.

          ESTIMATES IN FINANCIAL STATEMENTS

          The preparation of the Company's 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.


                                                    Page 6 of 11 

                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                       SEPTEMBER 30, 1998
                           (Unaudited)
                           (Continued)





          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. 

          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 September 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
          consummation 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.

NOTE 3:   INVESTMENT IN EQUITY SECURITIES (At Cost)

          Investments in Non-Marketable Equity Securities consist
          of the following:













                                                     Page 7 of 11

                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                       SEPTEMBER 30, 1998
                           (Unaudited)
                           (Continued)


                                        Sept. 30,  June 30,
                                          1998       1998   
          
          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        900

                                        $24,750    $24,750



          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 September
          30, 1997, this investment was sold.

          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. During the quarter ended September 30,
          1997, this investment was sold. 




                                                                 
                                                   Page 8 of 11  
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                       SEPTEMBER 30, 1998
                           (Unaudited)
                           (Continued)


NOTE 4:   INVESTMENT IN AFFILIATE (At Equity)

          Investment in Soft Sail Wind Power Inc.
          (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 at June 30, 1996:
            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 9 of 11  

                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                       SEPTEMBER 30, 1998
                           (Unaudited)
                           (Continued)


NOTE 5:   INCOME TAXES

          The provision for income taxes is comprised of the
          following:
                                        9/30/98    9/30/97
          Current tax expense:
            Federal income tax          $  800     $ 5,966
            State & city income tax        583      10,163
                                        $1,383     $16,129

          There were no timing differences during the current     
          periods.  Therefore, there was no deferred tax expense  
          during the quarters ended September 30, 1998 and 1997.

          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:

                                        9/30/98    9/30/97
          Deferred tax assets:
            Net operating loss
              Carry forwards            $ 1,323    $ 7,375
            Valuation allowances         (1,323)       -0-
          Net deferred tax (assets)     $   -0-    $(7,375)


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 or 112.







                                         Page 10 of 11
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                       SEPTEMBER 30, 1998
                           (Unaudited)
                           (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.

          
NOTE 8:   INTERIM FINANCIAL REPORTING

          The unaudited financial statements of the Company for the
          period July 1, 1998 to September 30, 1998 have been
          prepared by management from the books and records of the
          Company, and reflect, in the opinion of management, all
          adjustments necessary for a fair presentation of the
          financial position and operations of the Company as of
          the period indicated herein, and are of a normal
          recurring nature.





























                                                    Page 11 of 11
                     MODERN TECHNOLOGY CORP.
                 Part 1.  Financial Information

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations.

          Modern Technology Corp. ("The Registrant") is engaged in
aiding prospective clients in obtaining financing and in providing
management services to client companies.  

          During the three months ended September 30, 1998, the
Registrant had a net loss of $3,846 as compared with net income of
$32,691 during the three months ended September 30, 1997.  For the
three months ended September 30, 1998, total revenues amounted to
$9,642, an 87% decline over revenues generated during the three
months ended September 30, 1997.  Expenses for the three months
ended September 30, 1998 amounted to $12,105, a 54% decline over
expenses incurred for the three months ended September 30, 1997. 
The net loss before taxes amounted to $2,463 for the three months
ended September 30, 1998, as compared with net income before taxes
of $48,820 earned during the three months ended September 30, 1997. 

          The net income generated for the three months ended
September 30, 1997 can be attributable to the share positions in
Delta Three Inc. and TTR Inc. sold during the three months ended
September 30, 1997.  Income tax expense for the three months ended
September 30, 1998 declined by 91% as compared with the tax expense
for the three months ended September 30, 1997.

          During the three month period ended September 30, 1997,
the Registrant sold its share positions in Delta Three Inc. and TTR
Inc., generating a gain of $67,065.

          During the three months ended September 30, 1998, the
Registrant's treasurer-secretary, Anne Seidenfeld, received a
salary of $1,200.  During the three months ended September 30,
1997, she received a salary of $1,800.  During the three months
ended September 30, 1997, the Registrant's president, Arthur
Seidenfeld, received a salary of $16,000.  For the three months
ended September 30, 1998, the Registrant's president did not
receive a salary.

          The cash and cash equivalent balances along with holdings
of U.S. Treasury Obligations of the Company as of September 30,
1998 and June 30, 1998 were $699,229 and $701,275 respectively.

          The Registrant received management fees of $1,600 from
Davin Enterprises Inc. for the three months ended September 30,
1997.  The Registrant provided administrative, clerical,
bookkeeping and other services to Davin Enterprises Inc.  The
agreement to provide the above listed services was terminated on
December 31, 1997.  At September 30, 1998, the Registrant owned
50,100 shares of Creative Master International Inc. (formerly Davin
Enterprises Inc.) at a cost of $7,950, representing about 1% of the
total outstanding shares of Creative Master outstanding.  Davin
Enterprises merged with Creative Master International Inc. in
December 1997.



          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.  In July 1998, Coral signed a merger agreement with
Omnicomm Systems Inc., a computer software company.  

          Subsequent to September 30, 1998, the Registrant and
Coral Development Corp. ("Coral") determined that they would be
unable to meet the time limitations imposed by Rule 419.  However,
it is the intention of all parties to the Agreement to continue
with the merger of Coral and Omnicomm and for the Registrant to
distribute its Coral shares to its shareholders as a dividend
following an effective Form 10SB to be filed under the Securities
Exchange Act of 1934, which is expected to be filed in early
December 1998.




                   Part 2.  Other Information


Item 1.   Legal Proceedings.  None.


Item 2.   Changes in Securities.  None.


Item 3.   Defaults upon Senior Securities.  None.


Item 4.   Submission of Matters to a Vote of Security Holders. 
          None.


Item 5.   Other Materially Important Events.  None.


Item 6.   Exhibits and Reports on Form 8-K.  None.



                           SIGNATURES


          Pursuant to the requirements 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, Chief Executive and
                     Chief Financial Officer
                        November 12, 1998