Organizational Changes Streamline Management and Improve
                         Responsiveness to Customers

    COLUMBIA, Md., May 22 /PRNewswire/ -- GSE Systems, Inc.
(Nasdaq-NNM: GSES), a leading global provider of integrated enterprise
software and information solutions to the energy, process and manufacturing
industries, today announced that it has streamlined its management  structure
in two ways.  First, it has made several organizational changes to improve its
responsiveness to customers.  Second, partly in connection with these
organizational changes, the Company has reduced the number of senior managers.
These actions represent the completion of the primary component of the
restructuring announced on May 7, 1997.
    The organizational changes generally involve the placement of formally
centralized overhead functions back into the business units.  Most
importantly, product development functions have been restored to the control
of applicable business units.  In addition, the Company has placed the Oil &
Gas business unit under the leadership of Chris Carnavos, who is currently
managing the process business unit.  This move will enable the two business
units to share certain overlapping resources to better serve the customers.
    In connection with the staff reductions plan that was approved in  the
first quarter, the Company announced that David  M.  Suchniak and Frank E.
Hanou, former CFO and Vice President - Corporate  Marketing, respectively,
will no longer be employed by the Company.  With the departure of Mr.
Suchniak, Michael J. Cromwell, III, Vice Chairman, will retake responsibility
for the Company's financial and administrative functions.
    "These operational changes make us more responsive to our customers'
requirements while at the same time giving us a more competitive cost
structure," said Jerome I. Feldman, Chairman of the Board.  "By realigning
product development with the business units, we have empowered our business
unit managers to immediately and directly address their customers' issues.
By implementing these necessary reductions in personnel, we believe we'll
return the Company to profitability in the near future."
    GSE Systems designs, develops and delivers business and technology
solutions by applying process control, data acquisition, simulation,
client/server and business software, systems and services to the energy,
process and manufacturing industries worldwide.   GSE Systems is the
world's leading supplier of power plant simulators.
    The Company's products are used in over 700  applications, representing
over 250 customers in 30 countries, in the following industries: specialty
chemical, food & beverage, petroleum  refining, oil & gas, pharmaceutical,
fossil and nuclear power generation, metals, electrical distribution and
water treatment.  GSE Systems is headquartered in Columbia, Maryland with
offices in Augusta, GA, Baton Rouge, LA, Houston, TX, Phoenix, AZ, Pittsburgh,
PA, Salt Lake City, UT and Shelby, NC, and its global operations include
offices in Belgium, Japan, Korea, Singapore, Sweden, and Taiwan.
    This news release contains forward-looking statements that involve risks
and uncertainties.  The actual results of GSE Systems may differ materially
due to a number of factors, including but not limited to delays in the
introductions of products or enhancements, size and timing of individual
orders, rapid technology changes, market acceptance of new products, and
competition.  These and other factors are more fully discussed in the
Company's annual report on Form 10K.

To receive additional information on GSE Systems, Inc., via fax at no charge,
          dial 1-800-PRO-INFO and enter #178 or ticker symbol GSES.

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