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8-K - FORM 8-K - GTSI CORP | c07228e8vk.htm |
EX-10.1 - EXHIBIT 10.1 - GTSI CORP | c07228exv10w1.htm |
EX-10.2 - EXHIBIT 10.2 - GTSI CORP | c07228exv10w2.htm |
Exhibit 99.1
SBA Lifts GTSI Suspension
HERNDON, VA., October 19, 2010 GTSI Corp. (NASDAQ: GTSI) is pleased to announce that the Small
Business Administration (SBA) has lifted the temporary federal contract suspension it imposed on
the company on October 1, 2010, allowing GTSI and its approximately 525 employees to immediately
resume full business with most of GTSIs existing clients and to pursue new contracts with the
federal government.
The lifting of the suspension gives GTSI, its vendors and clients the ability to move forward,
said John Toups, Chairman of GTSIs Board of Directors. The cloud of uncertainty that was hanging
over our employees, creditors, shareholders and partners has been removed, and we can get back to
the business of serving our government clients. We sincerely appreciate the support expressed by
our vendor community, especially our credit facility partner Castle Pines Capital.
Under an agreement with the SBA, Toups said, GTSI has agreed to immediately cease working with
small businesses serving as prime contractors, which in recent years has accounted for less than 15
% of GTSIs annual revenue. GTSI also has agreed to stop participating in the SBAs mentor-protégé
program and in joint ventures with small businesses, he said. Furthermore, Toups said, GTSI will
bring in an SBA-approved monitor to report to the SBA on GTSIs compliance with the agreement and
applicable government contracting laws and regulations. The term of the SBA agreement will end on
the earlier of 90th day after the completion of the SBAs continuing investigation of
GTSI, October 19, 2013, or the notification date of any proposed debarment of GTSI by the SBA per
the agreement.
To facilitate entering into the agreement, GTSIs Board has reluctantly accepted the voluntary
resignations, effective as of October 26, 2010, of Scott Friedlander, as Chief Executive
Officer, President and a Director of GTSI, and of Charles DeLeon as a Senior Vice President and
General Counsel of GTSI. Toups said: This was extraordinarily unselfish action by Scott and
Charles. These two men have been instrumental helping GTSI achieve so many of our strategic
objectives.
Toups said GTSIs Board has chosen Sandra Gillespie, a Senior Vice President of GTSI leading its
business capture, marketing, sales, services and supply chain organization, and Peter Whitfield, a
Senior Vice President and Chief Financial Officer of GTSI, to run the company on an interim basis
as acting Co-Chief Executive Officers. In the coming weeks Toups said the Board will conduct a
search for a new leader at GTSI.
Now that the SBA has lifted the suspension we are looking forward to getting back to helping our
customers meet their mission, said Gillespie. As a result of the action taken by the SBA, we
will be enhancing our compliance activities and implementing a rigorous process to regularly report
to the SBA on our actions. For nearly three decades, government has come to rely on GTSI, and our
employees are ready to get back to work and prove that trust was not misplaced.
GTSI will continue to cooperate with the continuing investigations of its conduct as a
subcontractor for certain small businesses. The continuing investigations of the GTSI could result
in administrative, civil or criminal penalties.
About GTSI Corp.
GTSI Corp. provides a Technology Lifecycle Management (TLM) approach to IT infrastructure solutions
delivered through industry-leading professional and financial services. GTSI employs a proactive,
strategic methodology that streamlines technology lifecycle management, from initial assessment to
acquisition, implementation, refresh, and disposal. TLM allows customers to implement solutions
quickly and cost-effectively. GTSIs certified engineers and project managers leverage strategic
partnerships with technology innovators. These experts use proven, repeatable processes to design,
deploy, manage, and support simple to complex solutions, to meet clients current and future
requirements and business objectives. GTSI is headquartered in Northern Virginia, outside of
Washington, D.C. and was named as one of Best Places to Work in 2009. Further information about
the Company is available at www.GTSI.com.
Except for historical information, all of the statements, expectations, beliefs and assumptions
contained in the foregoing are forward-looking statements (within the meaning of the Private
Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. It is
possible that the assumptions made by management, including, but not limited to, those relating to
sales, margins, operating results and net income, and the effect of new contracts and lender
agreements, as well as new vendor relationships may not materialize. Actual results may differ
materially from those projected or implied in any forward-looking statements. In addition to the
above factors, other important factors that could cause actual results to differ materially are
discussed in the Companys most recent annual report on Form 10K and included from time to time in
other documents filed by the Company with the Securities and Exchange Commission.
GTSI and GTSI.com are registered trademarks of GTSI Corp. in the U.S. and other countries. All
trade names are the property of their respective owners.
GTSI Contact:
Paul Liberty
Vice President, Corporate Affairs & Investor Relations
703.502.2540
paul.liberty@gtsi.com
Paul Liberty
Vice President, Corporate Affairs & Investor Relations
703.502.2540
paul.liberty@gtsi.com