GSE Systems Awarded New Contracts in Conventional Power Markets.

Control Room Modernization and Emission Controls Drive Growth

BALTIMORE -- GSE Systems, Inc. (GSE) (Amex:GVP), a leading global provider of real-time simulation and training solutions to the power, process, manufacturing and Government sectors, announced the award of several contracts for fossil fuel power plant simulators and models. The total values of the contracts exceed $2.5 million, and reflect the Company's continued growth in one of its many non-nuclear market sectors.

In the United States, the Company will build a full scope simulator for Portland General Electric's Boardman Plant. The plant, a 615 MW coal fired unit, is undergoing a control room modernization that includes the Emerson Ovation Digital Control System. The transition to digital control drives the need for a simulator to train control room operators on the new systems. Similarly, in the United Kingdom, the Company was awarded a contract to provide models for the Farley Plant simulator, a 500 MW oil fired unit originally commissioned in 1960. Farley is also undergoing a control room modernization.

In addition, the Company received contracts to build three Flue Gas Desulphurization (FGD) models for existing plants in the US. FGD systems are installed in power plants burning fossil fuels to clean up emissions. These are complex systems to operate; therefore simulators are often used to train plant operators as well as to determine optimal system setpoints.

Mr. John Moran, Chief Executive Officer for GSE, said "We continue to experience significant growth in the conventional fossil fuel power generation segment of our business which is being driven by control room modernization, the addition of FDG systems to combat harmful emissions, and by the construction of new power plants worldwide. The control room modernizations are required because the existing instrumentation and control systems in older plants are becoming obsolete forcing their owners to convert to modern digital control systems. The transition to digital control presents a very sizable challenge for plant operators. This challenge is minimized by training on a full scope simulator as the modernization takes place."

GSE Systems, Inc. provides training simulators and educational solutions. The Company has over three decades of experience, over 265 installations, and 100 customers in more than 25 countries. Our software, hardware and integrated training solutions leverage proven technologies to deliver real-world business advantages to the energy, process, manufacturing and government sectors worldwide. GSE Systems is headquartered in Baltimore, Maryland. Our global locations include offices in St. Marys, Georgia, Sweden, and China. Information about GSE Systems is available via the Internet at http://www.gses.com.

This news release contains forward-looking statements that involve risks and uncertainties. We use words such as "expects", "intends" and "anticipates" to indicate forward looking statements. 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, and in statements filed with the Securities and Exchange Commission.

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.