COLUMBIA, Md., Dec. 5 /PRNewswire/ -- GSE Systems, Inc. (GSE) (Amex: GVP),
a leading global provider of real-time simulation and process control
solutions for the energy and process industries, announced today that it has
reached an agreement with ManTech International Corporation to convert
$3.9 million of debt to GSE preferred stock.
Under the agreement, ManTech will cancel and surrender a Promissory Note
valued at $3.9 million dollars in exchange for 39,000 shares of Series A
Preferred Stock with a purchase price of $100 per share. ManTech has the
option to convert the Series A Preferred Stock to common stock any time during
the next three years at a conversion rate of $2.645 per share. The Preferred
Stock will automatically convert to common stock after three years.
Jerry Jen, GSE Systems President and Chief Operating Officer, said: "This
transaction eliminates $3.9 million of debt, allowing GSE to use its working
capital to grow the business versus repaying ManTech. We are in the midst of
a rights offering for non-affiliated shareholders at $2.53 per share. ManTech
is waiving its right to participate in that transaction to prevent dilution to
the other shareholders. ManTech will be paying a 5% premium to the price we
are offering other shareholders. This reflects ManTech's continuous support of
GSE and confidence in our future. "
George J. Pedersen, ManTech's Chairman of the Board, CEO and President,
said: "This debt-to-equity transaction reflects our increasing confidence in
the value of GSE and the great job being done by the new management team."
GSE Systems, Inc. develops and delivers business and technology solutions
by applying process control, simulation software, systems and services to the
energy, process and manufacturing industries worldwide. The Company's
products are used in the following industries: specialty chemical, food and
beverage, petroleum refining, pharmaceutical, and fossil and nuclear power
generation. GSE Systems is headquartered in Columbia, Maryland with offices
in Alabama, Georgia, Louisiana, Maryland, North and South Carolina,
Pennsylvania, and Texas, and its global locations include offices in Japan and
Sweden. Information about GSE Systems is available via the Internet's World
Wide Web at http://www.gses.com .
This news release contains forward-looking statements that involve risks
and uncertainties. The actual future results of GSE Systems may differ
materially due to a number of factors, including but not limited to delays in
introduction of products or enhancements, size and timing of individual
orders, rapid technological changes, market acceptance of new products and
competition. These and other factors are more fully discussed in the
Company's annual report on Form 10-K for the year ended December 31, 2000 as
filed with the Securities and Exchange Commission.
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Gill R. Grady, Senior Vice President of GSE
Systems, Inc., +1-410-772-3500, or Susan Garland of FRB Weber
Shandwick, +1-212-445-8458
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