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SBA Lifts GTSI Suspension GTSI Corp.

will live for the next three years under close scrutiny from inside and out as federal officials watch the contractor's every move in the government marketplace and an independent monitor stands over the company. GTSI's agreement with the SBA also suspends three top company employees: Tom Kennedy, vice president of civilian sales and general manager; Scott Schmader, senior sales manager; and Patrick Berg, program manager, until the agreement ends. By signing the agreement, government officials said they believe GTSI gave enough assurances to lift the four week old suspension. GTSI doesn't admit to any wrongdoing or breaking the law, but the government still reserves the right to extend the scope of the case if it comes across any additional revealing facts. Nevertheless, the SBA inspector general's office will continue to probe SBA's charges against GTSI for using small business prime contractors as a front to funnel work and revenue back to itself. The agreement also gives SBA access to company books, records and other documents. GTSI and SBA officials must also agree on an independent company monitor who will ensure that the company is compliant with acquisition rules and the agreement. The monitor will have full access to inspect the company on an ongoing basis and report to SBA without interference from GTSI. GTSI won't see the monitor's monthly reports before they go to SBA, and they will be proof of whether the company is or is not complying. "The monitor shall have unfettered, immediate and, if requested, real time access to all company documents, information and personnel," the notice states. In addition, the agreement requires GTSI to give the monitor management style office space and it must pay, among other things, all monitor fees, retainers and other reimbursements, including any legal fees, the agreement states. GTSI's stock has rebounded after a huge plunge. The agreement with SBA requires them to immediately cease all work with small businesses serving as prime contractors, to stop participating in the SBA's mentor protg program and in joint ventures with small businesses and remain subject to a SBA approved monitor to report to the SBA on GTSI's compliance with the agreement and applicable government contracting laws and regulations. Two senior GTSI executives agreed to resign. = HERNDON, Va., Oct 19, 2010 (BUSINESS WIRE) 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 louis vuitton alma bag damier resume full business with most of GTSI's 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 GTSI's 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 GTSI's annual revenue. GTSI bolsa louis vuitton neverfull m also has agreed to stop participating in the SBA's mentor protg 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 GTSI's 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 SBA's 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, GTSI's Board has reluctantly accepted the voluntaryresignations, 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 GTSI's 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. GTSI's certified engineers and project managers leverage strategic partnerships with technology innovators. 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