Global Power Reports First Quarter 2018 Results

• Achieved gross margin from continuing operations of 15%
• Generated $7.1 million of cash from operating activities in
  continuing operations

IRVING, Texas–(BUSINESS WIRE)–Global
Power Equipment Group Inc. (OTC:GLPW) (ÔÇ£Global PowerÔÇØ or the
ÔÇ£CompanyÔÇØ) today reported its financial results for its first quarter
ended March 31, 2018. First quarter 2017 results include Hetsco Inc.,
which was divested on January 13, 2017.

As previously reported, the Mechanical Solutions and Electrical
Solutions segments have been classified as discontinued operations and,
accordingly, the results for those segments are presented as such.
Results of continuing operations are presented as a single segment
comprised of the former Services segment (or ÔÇ£WilliamsÔÇØ) and corporate
operations, unless otherwise noted.

• First quarter 2018 revenue from continuing operations was $43.1
  million compared with $45.6 million in the prior-year period.
  Excluding revenue from the Hetsco divestiture and a reserve reversal
  from first quarter 2017, revenue increased 8% in the first quarter
  2018.
• Loss from continuing operations for the 2018 first quarter improved to
  $2.2 million, or $(0.12) per share, compared with $11.6 million, or
  $(0.67) per share, for the corresponding 2017 period.
• Total net loss was reduced to $4.0 million, or $(0.22) per share,
  compared with $16.8 million, or $(0.97) per share, for the prior-year
  period.
• Adjusted EBITDA from continuing operations for the first quarter 2018
  was $0.4 million compared with $(8.8) million for the first quarter
  2017. See NOTE 1ÔÇöNon-GAAP Financial Measures in the attached tables
  for important disclosures regarding Global Power's use of Adjusted
  EBITDA, as well as a reconciliation of net income to Adjusted EBITDA.

Tracy Pagliara, President and CEO of Global Power, noted, ÔÇ£The momentum
in our business that began late last year has continued into 2018.
During the first quarter of 2018, our backlog and pipeline of
opportunities continued to grow and, as previously reported, we resolved
several important contingencies. In addition, our operating performance
is improving. We achieved 15% gross margin in the quarter, which
underscores our earnings power potential. We also continue to
aggressively implement our plan to achieve an annualized general and
administrative expenses run rate of approximately $14 million to $18
million by the end of 2018. We expect to achieve this plan by incurring
restructuring costs of approximately $8 million to $12 million in 2018.

ÔÇ£Importantly, we are also making progress on the sale of the
Koontz-Wagner business and have received multiple bids. In addition, our
Houston facility operations have been stabilized. Our goal remains to
have the Koontz-Wagner divestiture completed by the end of June. Of
note, the potential sale of Global Power and/or Williams has been
eliminated from consideration as a strategic alternative at this time.
In the meantime, we are diligently moving forward on our initiatives to
recapitalize our balance sheet with new asset-based and restructured
term loans. We believe that a strengthened balance sheet, coupled with
the improving operational performance of our business and substantially
reduced general and administrative costs, will position our Company for
future growth and profitability.ÔÇØ

First Quarter 2018 Financial Results Review
(Discussion is regarding continuing operations and compared with the
corresponding period in 2017 unless noted otherwise)

Revenue for the quarter was down $2.5 million. However, when first
quarter 2017 revenue is adjusted for the $1.2 million reduction in
revenue from the divestiture of Hetsco in January 2017 and the benefit
of the reversal of a $4.4 million liquidated damage contingent liability
reserve, revenue improved 8%. The $8.4 million increase from
construction activities at Plant Vogtle Units 3 & 4 more than offset
declines from fewer non-recurring projects and the timing of a nuclear
outage.

Gross profit increased $8.0 million to $6.5 million and was 15% of
revenue. Last yearÔÇÖs first quarter was negatively impacted by $13.1
million of new or revised estimated losses on three projects, which was
partially offset by $4.4 million related to the release of the
contingent liability reserve discussed previously, which had no
associated costs.

Operating expenses for the 2018 first quarter were down $3.2 million
including a $1.6 million reduction of restatement expenses related to
the filing of the Annual Report on Form 10-K for the year ended December
31, 2015. Additionally, in the first quarter of 2018, labor-related
expenses decreased $0.7 million and stock-based compensation expense
decreased $0.5 million. Furthermore, other expenses decreased $0.7
million. These decreases were partially offset by an increase in
professional fees related to strategic alternative activities.

Interest expense decreased $0.3 million on lower average debt balances.

Balance Sheet and Cash Flow

For the three months ended March 31, 2018, the CompanyÔÇÖs operating
activities, including discontinued operations, provided $2.2 million of
cash. The CompanyÔÇÖs liquidity remains constrained as a result of
continued losses, inconsistent cash flows from operations and
constraints on borrowing additional amounts for short-term working
capital needs or issuing additional standby letters of credit.

Outlook

At March 31, 2018, backlog was $150.1 million up from $137.7 million at
the end of 2017. The increase in construction activities at Plant Vogtle
Units 3 & 4 and new contract awards contributed to the larger backlog.

Mr. Pagliara concluded, ÔÇ£While our liquidity position remains a
challenge, we are confident in our ability to resolve that issue as we
press forward with the sale of the Koontz-Wagner business, our
restructuring plans and the ultimate recapitalization of our balance
sheet. We have a strong and diverse pipeline of opportunities, including
the potential for nuclear decommissioning projects, gaining more scope
at Plant Vogtle Units 3 & 4 and adding new customers. We are also
expanding our operations into Canada and the oil and gas industry while
pursuing opportunities with analog to digital controls conversions.ÔÇØ

Webcast and Teleconference

The Company will host a conference call on Tuesday, May 22, 2018, at
10:00 a.m. Eastern time (9:00 a.m. Central). A webcast of the call and
an accompanying slide presentation will be available at www.globalpower.com.
To access the conference call by telephone, listeners should dial
201-493-6780.

An audio replay of the call will be available from 1:00 p.m. Eastern
time (12:00 p.m. Central) on the day of the teleconference until the end
of day on June 5, 2018. To listen to the audio replay, dial 412-317-6671
and enter conference ID number 13679912. Alternatively, you may access
the webcast replay at http://ir.globalpower.com/,
where a transcript will be posted once available.

About Global Power

Global Power Equipment Group Inc. and its wholly owned subsidiaries
offer a broad range of general and specialty construction, maintenance
and modification, and plant management support services for the nuclear,
hydro and fossil power generation industries as well as pulp and paper,
refining, petrochemical, government, manufacturing and other industries.

Additional information about Global Power can be found on its website: www.globalpower.com.

Forward-looking Statement Disclaimer

This press release contains ÔÇ£forward-looking statementsÔÇØ within the
meaning of the term set forth in the Private Securities Litigation
Reform Act of 1995. The forward-looking statements include statements or
expectations regarding the timing or outcome of the Electrical Solutions
strategic review process, if any, the ability to close on an asset-based
loan, the outcome of a strategic review process for Global Power, the
CompanyÔÇÖs ability to comply with the terms of its debt instruments, the
impact of planned cost reductions, reorganization and restructuring
efforts, the CompanyÔÇÖs ability to implement its liquidity plan,
expectations for growth of the business in 2018 and ability to realize
the inherent value in the CompanyÔÇÖs capabilities, ability to compete
well in Global PowerÔÇÖs markets, and other related matters. These
statements reflect the CompanyÔÇÖs current views of future events and
financial performance and are subject to a number of risks and
uncertainties, including its ability to comply with the terms of its
credit facility and enter into new lending facilities and access letters
of credit, ability to timely file its periodic reports with the U.S.
Securities and Exchange Commission (ÔÇ£the SECÔÇØ), ability to implement
strategic initiatives, business plans, and liquidity plans, and ability
to maintain effective internal control over financial reporting and
disclosure controls and procedures. Actual results, performance or
achievements may differ materially from those expressed or implied in
the forward-looking statements. Additional risks and uncertainties that
could cause or contribute to such material differences include, but are
not limited to, decreased demand for new gas turbine power plants,
reduced demand for, or increased regulation of, nuclear power, loss of
any of the CompanyÔÇÖs major customers, whether pursuant to the loss of
pending or future bids for either new business or an extension of
existing business, termination of customer or vendor relationships, cost
increases and project cost overruns, unforeseen schedule delays, poor
performance by its subcontractors, cancellation of projects,
competition, including competitors being awarded business by current
customers, damage to the CompanyÔÇÖs reputation, warranty or product
liability claims, increased exposure to environmental or other
liabilities, failure to comply with various laws and regulations,
failure to attract and retain highly-qualified personnel, loss of
customer relationships with critical personnel, effective integration of
acquisitions, volatility of the CompanyÔÇÖs stock price, deterioration or
uncertainty of credit markets, changes in the economic and social and
political conditions in the United States, including the banking
environment or monetary policy, and any suspension of the CompanyÔÇÖs
continued reporting obligations under the Securities Exchange Act of
1934, as amended.

Other important factors that may cause actual results to differ
materially from those expressed in the forward-looking statements are
discussed in the CompanyÔÇÖs filings with the SEC, including the section
of the Annual Report on Form 10-K for its 2017 fiscal year titled ÔÇ£Risk
Factors.ÔÇØ Any forward-looking statement speaks only as of the date of
this press release. Except as may be required by applicable law, Global
Power undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, and you are cautioned to not to rely upon
them unduly.

Financial Tables Follow.

GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
NON-GAAP
FINANCIAL MEASURE (UNAUDITED)

This press release contains financial measures not derived in accordance
with accounting principles generally accepted in the United States
(ÔÇ£GAAPÔÇØ). A reconciliation to the most comparable GAAP measure is
provided below.

NOTE 1ÔÇöNon-GAAP Financial Measures

Adjusted EBITDA is not calculated through the application of GAAP and is
not the required form of disclosure by the U.S. Securities and Exchange
Commission. Adjusted EBITDA is the sum of our net loss before interest
expense, net and income tax (benefit) expense and unusual gains or
charges. It also excludes non-cash charges such as depreciation and
amortization. The CompanyÔÇÖs management believes adjusted EBITDA is an
important measure of operating performance because it allows management,
investors and others to evaluate and compare the performance of its core
operations from period to period by removing the impact of the capital
structure (interest), tangible and intangible asset base (depreciation
and amortization), taxes and unusual gains or charges (stock-based
compensation, restatement expenses, asset disposition costs, gain on
sale of business and net assets held for sale, bank restructuring costs,
loss on sale-leaseback and severance costs), which are not always
commensurate with the reporting period in which such items are included.
Global PowerÔÇÖs credit facility also contains ratios based on EBITDA.
Adjusted EBITDA should not be considered an alternative to net income or
as a better measure of liquidity than net cash flows from operating
activities, as determined by GAAP, and, therefore, should not be used in
isolation from, but in conjunction with, the GAAP measures. The use of
any non-GAAP measure may produce results that vary from the GAAP measure
and may not be comparable to a similarly defined non-GAAP measure used
by other companies.

Contacts

Investor Relations:
Kei Advisors LLC
Deborah K.
Pawlowski, (716) 843-3908
[email protected]