GSE Systems and the University of Strathclyde Form Strategic Partnership to Develop Simulation Training and Diagnostic Center in UK.

BALTIMORE -- GSE Systems, Inc. (GSE) (AMEX:GVP), a leading global provider of training simulators and educational solutions to the power, process, manufacturing and Government sectors, announced today that it has agreed to develop a Simulation Training and Diagnostic Center in concert with the University of Strathclyde located in Glasgow, UK. The University of Strathclyde is a prestigious educational institution with its originating educational establishment founded in 1796 and offers undergraduate, Masters and Doctoral degreed programs in Engineering, Science and Business, among others. In the Engineering Department, Strathclyde are developing advanced plant and equipment diagnostic systems and technology in conjunction with a number of major electric power companies.

Upon finalization of project financing, GSE and Strathclyde will collaborate to accomplish the following:

--Develop a "for profit" Simulation Training Center in Glasgow where indigenous UK and international workers can be educated and trained to operate and maintain power plants, oil refineries, petrochemical plants and other industrial facilities. GSE will supply the simulators for the Training Center.

--Coupling GSE's plant computer models with Strathclyde's advanced diagnostic technology, develop a plant and equipment diagnostic center where actual plant process points are monitored and analyzed.

--From its Simulation Center in Glasgow, market, build and service full scope, real time training simulators for the UK market.

John V. Moran, GSE's Chief Executive Officer, stated "We are honored that the University of Strathclyde selected GSE to team with on this vitally important initiative in Scotland. The Training Center will integrate best-in-class training programs with real time high fidelity plant simulators. Individuals that complete the program will be immediately deployable to industrial facilities in the UK and Europe. We are also very excited about the concept of extending the utility of our simulation computer models by coupling them with Strathclyde's advanced plant performance and diagnostic technology. This has the potential to create an entirely new product line for GSE. Finally, it just makes great business sense to market, build and service simulators in the UK from a base of operations in Scotland."

Dr. James McDonald, Vice President of the University of Strathclyde, stated "This teaming with GSE brings enormous opportunity to take their highly detailed, validated plant and systems models and reconfigure them for the purposes of on-line diagnostic and prognostic data analysis and interpretation. This has the potential to produce a unique decision support facility capable of improving the station operators' anticipation and response to incipient maloperations and to optimize plant performance. The anticipated international move to build new generations of nuclear fission power stations will bring with it the need for enhanced plant asset management, risk assessment and operational methods. The proposed Center will support the realization of these critical functions as well as provide well-trained staff capable of operating large, complex systems and processes."

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. Mary's, 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.