Elkridge, MD. August 20, 2008. GP Strategies Corporation (NYSE: GPX), the parent company of global performance improvement solutions provider General Physics Corporation (GP), today announced that it repaid at maturity on August 14, 2008, all of the outstanding 6% Subordinated Notes held by four Gabelli Funds and that all of the warrants to acquire shares of GP Strategies’ common stock that were issued in connection with the 6% Subordinated Notes have been exercised. The $2.0 million repayment of the notes leaves GP Strategies with no long-term debt obligations, other than capital leases, or outstanding warrants to acquire shares of GP Strategies’ common stock.
In May 2008 GP Strategies prepaid a $5.3 million note owed to ManTech International. The repayment of the note extinguished the holder’s right to convert the debt into as many as 525,000 shares of GP Strategies’ common stock.
Scott Greenberg, the Company’s Chief Executive Officer, commented that “Our ability to pay down these long-term debts while funding acquisitions and stock purchases demonstrates how strong our cash flow from operations has been and confirms our prudent financial management. With the ManTech and Gabelli debts behind us, we can now devote more cash generated from operations and short-term borrowings under our $25 million revolving line of credit for achieving strategic objectives, such as developing new products and services, completing acquisitions and repurchasing our common stock under the buyback program.”
GP Strategies, whose principal operating subsidiary is General Physics Corporation, is a NYSE-listed company (GPX). GP is a global performance improvement solutions provider of sales and technical training, e-Learning solutions, management consulting and engineering services. GP’s solutions improve the effectiveness of organizations by delivering innovative and superior training, consulting and business improvement services, customized to meet the specific needs of its clients. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information may be found at www.gpworldwide.com.
We make statements in this press release that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipates,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Scott N. Greenberg
Chief Executive Officer
Chief Financial Officer
Ann M. Blank