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GTSI OUTLINES GROWTH STRATEGY AT ANALYST MEETING; OFFERS OUTLOOK FOR SECOND HALF OF 1993

 CHANTILLY, Va., Sept. 10 /PRNewswire/ -- The Chairman and Chief Executive Officer of Government Technology Services, Inc. (NASDAQ: GTSI), R.M. Rickenbach, today announced details of the Company's strategies to diversify procurement vehicles, improve productivity and expand product lines, and emphasized that results for the second half of 1993 would be positively affected by these initiatives. Rickenbach made his remarks at a meeting of securities analysts and other leading investment advisors held at the Chantilly, Va. headquarters of GTSI, a leading reseller of microcomputer products to the government market.
 "The government market for microcomputers and related products has proven to be an attractive and viable niche for GTSI, and we have strategies in place to expand our leadership role in this market," Rickenbach told the analyst group. He outlined a three-point growth strategy, which includes participating in additional government procurement vehicles, continuing as a low-cost provider of microcomputer products, and the addition of new technologies to meet the needs of government customers.
 "Our aggressive efforts to participate in multiple procurement vehicles enabled GTSI to win contract awards such as Desktop IV, NASA SEWP and NRECA. While we continue to service state and local governments and our traditional GSA Schedule business, our revenues will increasingly be derived from a more diverse range of procurement vehicles," the CEO noted.
 Rickenbach continued, "In the area of cost control, we expect to reduce selling, general and administrative expenses to 6.8 percent of sales for 1993, from 9.5 percent just two years ago, allowing us to keep pace with competitive pricing pressures." He added, "Another key to our growth will be the ability to bring new technologies to our market. We introduced UNIX workstations to the government market in 1991 and Apple products in 1993."
 As a result of the Company's emphasis on new procurement vehicles and additional product offerings, Rickenbach said that revenues for the second half of 1993 were expected to increase approximately 20 percent over the $262.7 million recorded in the year-ago period. As in prior years, a relatively higher proportion of the sales will occur in the third quarter, which coincides with the end of the Federal government's fiscal year. The CEO also stated that the Company is comfortable with analyst estimates that GTSI's earnings will range from $1.25 to $1.30 per share. Earnings for 1992 were $5.8 million, or $0.91 per share. He attributed the expected increase in earnings to the higher sales and stable profit margins.
 "Our three-year outlook is to achieve annual revenue growth of 20 percent, with a pretax ROE of 25 percent. We also expect sales per employee to reach $1.5 million during this period," Rickenbach concluded.
 GTSI is the leading reseller of microcomputer and UNIX workstation hardware, software and networking products to the Federal Government market.
 -0- 9/10/93
 /CONTACT: Carter Cromley of GTSI, 703-631-3333, ext. 1035/
 (GTSI)


CO: Government Technology Services, Inc. ST: Virginia IN: CPR SU:

TW-MP -- NY020 -- 0701 09/10/93 11:07 EDT
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Publication:PR Newswire
Date:Sep 10, 1993
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