GP Strategies Reports 42% Increase in First Quarter Earnings Per Share

GP STRATEGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) Three months ended March 31, ------------------------- 2008 2007 ------------ ------------ Revenue: Manufacturing & BPO $29,121 $23,500 Process, Energy & Government 19,430 16,778 Sandy Training & Marketing 18,368 13,265 ------------------------- Total revenue $66,919 $53,543 Cost of revenue 57,162 45,501 ------------------------- Gross profit 9,757 8,042 Selling, general and administrative expenses 4,803 4,619 ------------------------- Operating income 4,954 3,423 Interest expense 237 272 Other income 151 371 ------------------------- Income before income tax expense 4,868 3,522 Income tax expense 2,019 1,468 ------------------------- Net income $ 2,849 $ 2,054 ========================= Other data: EBITDA (1) $5,971 $4,666 Basic weighted average shares outstanding 16,722 16,308 Diluted weighted average shares outstanding 16,920 16,962 Per common share data: Basic earnings per share $ 0.17 $ 0.13 Diluted earnings per share $ 0.17 $ 0.12

(1) The term EBITDA (earnings before interest, income taxes, depreciation and amortization) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent, see the Non-GAAP Reconciliation - EBITDA, along with related footnotes, below.

GP STRATEGIES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) March 31, December 31, 2008 2007 ------------ ------------ (Unaudited) Current assets: Cash and cash equivalents $ 3,662 $ 3,868 Accounts and other receivables 46,717 46,897 Inventories, net 654 577 Costs and estimated earnings in excess of billings on uncompleted contracts 14,483 13,995 Prepaid expenses and other current assets 8,080 8,208 ------------------------- Total current assets 73,596 73,545 Property, plant and equipment, net 2,873 2,843 Goodwill and other intangibles, net 70,314 68,088 Other assets 3,025 2,969 ------------------------- Total assets $149,808 $147,445 ========================= Current liabilities: Short-term borrowings $ 4,718 $ 2,953 Current maturities of long-term debt 8,082 8,021 Accounts payable and accrued expenses 32,072 32,820 Billings in excess of costs and estimated earnings on uncompleted contracts 10,277 11,671 ------------------------- Total current liabilities 55,149 55,465 Long-term debt less current maturities 17 26 Other noncurrent liabilities 2,054 1,572 ------------------------- Total liabilities 57,220 57,063 Total stockholders' equity 92,588 90,382 ------------------------- Total liabilities and stockholders' equity $149,808 $147,445 =========================

GP STRATEGIES CORPORATION AND SUBSIDIARIES Non-GAAP Reconciliation - EBITDA (Dollars in thousands) (Unaudited) Three months ended March 31, ------------------- 2008 2007 --------- --------- Net income $ 2,849 $ 2,054 Interest expense 237 272 Income tax expense 2,019 1,468 Depreciation and amortization 866 872 ------------------- EBITDA (2) $ 5,971 $ 4,666 ===================

(2) Earnings before interest, income taxes, depreciation and amortization (EBITDA) is a widely used non-GAAP financial measure of operating performance. It is presented as supplemental information that the Company believes is useful to investors to evaluate its results because it excludes certain items that are not directly related to the Company's core operating performance. EBITDA is calculated by adding back net interest expense, income tax expense, and depreciation and amortization to net income. EBITDA should not be considered as substitutes either for net income, as an indicator of the Company's operating performance, or for cash flow, as a measure of the Company's liquidity. In addition, because EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies.