GP Strategies Reports Earnings of $0.11 Per Share for the Second Quarter of 2006 Compared to $0.07 Per Share for the Second Quarter of 2005.

ELKRIDGE, Md. -- GP Strategies Corporation (NYSE:GPX), a global provider of training and e-Learning solutions, management consulting, and engineering services through its operating subsidiary General Physics Corporation, today reported strong second quarter 2006 results.

Second Quarter Highlights:

--Revenue of $45.8 million, up 4.9% compared to the second quarter of 2005

--Income from continuing operations before interest expense and income tax expense of $3.5 million, up 17.5% compared to the second quarter of 2005

--Net income of $1.7 million, up 43.0% compared to $1.2 million for the second quarter of 2005

--Net cash provided by operations of $6.7 million for the six months ended June 30, 2006

"I am pleased to report the Company had a strong second quarter ending June 30, 2006," said Scott N. Greenberg, CEO of GP Strategies. "Our Manufacturing & BPO segment has had strong growth in both revenue and profitability. In addition, we are making progress in expanding our global footprint, particularly in China and India. As a total solutions provider, GP offers customers subject matter expertise, extensive training experience and flexibility. Additionally, our management team and employees are focused on leveraging these capabilities to meet our strategic objectives."

Second Quarter 2006 Results

Revenue was $45.8 million for the second quarter of 2006 compared to $43.7 million for the second quarter of 2005. The $2.1 million net increase in revenue is attributable to a $3.5 million increase in revenue in the Manufacturing & BPO group, offset by a $1.4 million decrease in revenue in the Process, Energy & Government group.

During the second quarter of 2006, operating income increased $0.4 million to $3.3 million, compared to $3.0 million in the second quarter of 2005. The increase in operating income is attributable to an increase in gross profit of $0.6 million, primarily due to the net revenue increase, offset by an increase in selling, general and administrative expenses of $0.2 million during the second quarter of 2006 compared to the second quarter of 2005.

During the second quarter of 2006, income from continuing operations increased $0.3 million to $1.7 million, compared to $1.4 million for the second quarter of 2005. The increase is primarily attributable to increased operating income discussed above.

Six Months ended June 30, 2006 Results

Revenue was $89.3 million for the six months ended June 30, 2006 compared to $87.2 million for the same period of 2005. The $2.1 million net increase in revenue is attributable to a $5.3 million increase in the Manufacturing & BPO group, offset by a $3.2 million decrease in revenue in the Process, Energy & Government group.

During the six months ended June 30, 2006, operating income increased $0.7 million to $5.7 million, compared to $5.0 million for the same period of 2005. The increase in operating income is attributable to an increase in gross profit of $0.8 million, primarily due to the net increase in revenue. Operating income for the six months ended June 30, 2006 includes severance expense of $0.3 million primarily associated with the decrease in DPETAP contract funding and a staffing change within the tax department, as well as non-cash stock-based compensation expense of $0.3 million.

During the six months ended June 30, 2006, income from continuing operations increased $0.8 million to $3.1 million, compared to $2.3 million for the same period of 2005. The increase is primarily due to increased operating income discussed above.

The Company has scheduled an investor conference call for 10:00 a.m. ET on August 9, 2006. In addition to prepared remarks from management, there will be a question and answer session on the call. The dial-in number for the live conference call will be 888-633-3324 using conference ID number 3986703. A telephone replay of the call will also be available beginning at 1:00 p.m. on August 9th, until 11:59 p.m. on August 23rd. To listen to the replay, dial 800-642-1687 or 706-645-9291, using conference ID number 3986703.

About GP Strategies Corporation

GP Strategies, whose operating subsidiary is General Physics Corporation, is a NYSE listed company (GPX). General Physics is a global provider of training and e-Learning solutions, management consulting, and engineering services, improving the effectiveness of organizations by customizing solutions that enhance an organization's people, processes or technology. Clients include Fortune 1000 companies and government customers. Additional information about GP Strategies may be found at www.gpstrategies.com and about General Physics at www.gpworldwide.com.

This report contains 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, as amended. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward looking statements. Forward-looking statements are not statements of historical facts, but rather reflect our current expectations concerning future events and results. We use words such as "expects", "intends", "believes", "may", "will" and "anticipates" to indicate forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, but not limited to, those factors set forth under Item 1A, Risk Factors, in our 2005 Annual Report on Form 10-K and those other risks and uncertainties detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. We caution that these risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. We cannot predict these new risk factors, nor can we assess the effect, if any, of the new risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ from those expressed or implied by these forward-looking statements.

If any one or more of these expectations and assumptions proves incorrect, actual results will likely differ materially from those contemplated by the forward-looking statements. Even if all of the foregoing assumptions and expectations prove correct, actual results may still differ materially from those expressed in the forward-looking statements as a result of factors we may not anticipate or that may be beyond our control. While we cannot assess the future impact that any of these differences could have on our business, financial condition, results of operations and cash flows or the market price of shares of our common stock, the differences could be significant. We do not undertake to update any forward-looking statements made by us, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this report.

TABLES FOLLOW



The following table summarizes the consolidated results of operations
of GP Strategies Corporation ("the Company" or "GP Strategies") for
the three and six months ended June 30, 2006 and 2005. As previously
announced, GP Strategies completed the spin-off of GSE Systems, Inc.
(GSE) on September 30, 2005. Subsequent to the spin-off, the Company's
operations consist of General Physics Corporation ("General Physics")
and the Company ceased to have any ownership interest in GSE. The
operations of GSE have been reclassified to discontinued operations
for the prior periods presented.

(Unaudited - in thousands,      Three months ended   Six months ended
 except per share amounts):          June 30,            June 30,
                               ---------------------------------------

                                 2006      2005      2006      2005
                               --------- --------- --------- ---------

Revenue                         $45,779   $43,659   $89,307   $87,219
Cost of revenue                  38,822    37,291    76,588    75,307
                               ---------------------------------------
  Gross profit                    6,957     6,368    12,719    11,912
Selling, general and
 administrative expenses          3,632     3,398     7,004     6,936
                               ---------------------------------------
  Operating income                3,325     2,970     5,715     4,976
Other income                        180        12       584        54
                               ---------------------------------------
  Income from continuing
   operations before interest
   expense and income tax
   expense                        3,505     2,982     6,299     5,030
Interest expense                    443       379       857       742
                               ---------------------------------------
Income from continuing
 operations before income tax
 expense                          3,062     2,603     5,442     4,288
Income tax expense                1,317     1,162     2,328     2,005
                               ---------------------------------------
  Income from continuing
   operations                     1,745     1,441     3,114     2,283
Loss from discontinued
 operations, net of income
 taxes                                -      (221)        -      (595)
                               ---------------------------------------
Net income                       $1,745    $1,220    $3,114    $1,688
                               =======================================

Basic weighted average shares
 outstanding                     15,550    18,141    15,889    18,029
Diluted weighted average
 shares outstanding              16,461    18,761    16,795    18,879

Per common share data:
Basic
  Income from continuing
   operations                     $0.11     $0.08     $0.20     $0.12
  Loss from discontinued
   operations                        --     (0.01)       --     (0.03)
                               ---------------------------------------
  Net income                      $0.11     $0.07     $0.20     $0.09
                               =======================================
Diluted
  Income from continuing
   operations                     $0.11     $0.08     $0.19     $0.12
  Loss from discontinued
   operations                        --     (0.01)       --     (0.03)
                               ---------------------------------------
  Net income                      $0.11     $0.07     $0.19     $0.09
                               =======================================


The following table summarizes the condensed consolidated balance
sheet data of GP Strategies, as of June 30, 2006 and December 31, 2005
(in thousands).

                                           June 30, 2006 December 31,
                                            (Unaudited)      2005
                                           ------------- -------------
Current assets:
  Cash and cash equivalents (1)                  $2,164       $18,118
  Accounts and other receivables                 23,703        27,079
  Costs and estimated earnings in excess
   of billings on uncompleted contracts          13,109        11,487
  Prepaid expenses and other current
   assets                                         5,719         5,936
                                           ---------------------------
    Total current assets                         44,695        62,620
                                           ---------------------------
Property, plant and equipment, net                1,857         1,857
Goodwill and other intangibles, net              59,181        58,130
Deferred tax assets                               7,874        10,391
Other assets                                      1,613         1,643
                                           ---------------------------
    Total assets                               $115,220      $134,641
                                           ===========================

Current liabilities:
  Current maturities of long-term debt              $58           $71
  Accounts payable and accrued expenses          19,188        20,315
  Billings in excess of costs and
   estimated earnings on uncompleted
   contracts                                      6,438         7,430
                                           ---------------------------
    Total current liabilities                    25,684        27,816
                                           ---------------------------
Long-term debt less current maturities           11,558        11,309
Other non-current liabilities                     1,193         1,174
                                           ---------------------------
    Total liabilities                            38,435        40,299
Total stockholders' equity (1)                   76,785        94,342
                                           ---------------------------
    Total liabilities and stockholders'
     equity                                    $115,220      $134,641
                                           ===========================

(1) On January 19, 2006, the Company completed a restructuring of its
    capital stock, which included the repurchase of 2,721,500 shares
    of its common and Class B stock, and the exchange of 600,000
    shares of its Class B stock into 600,000 shares of common stock,
    and had the effect of eliminating all outstanding shares of Class
    B stock. The repurchase and exchange was financed with
    approximately $20.3 million of cash on hand.