GEG General Electric Capital Corp. General Electric Capital Corp. 6.05% Notes Due February 6, 2047

Global Power Equipment Group Inc. Reports Fourth Quarter FY2004 Results Year-end Backlog Rises 73% to $309 Million, Higher Steel Costs Continue to Impact Gross Margins TULSA, Okla., March 2 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (NYSE:GEG), a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global energy, power infrastructure and process industries, today reported financial results for the fourth quarter and fiscal year ended December 31, 2004. Global Power Equipment Group reported a loss for the fourth quarter of fiscal 2004 of ($1.9) million or ($0.04) per diluted share, on revenues of $61.8 million. This compares to net earnings of $5.1 million, or $0.11 per diluted share, on revenues of $65.4 million for the fourth quarter of fiscal 2003. For the fiscal year ended December 31, 2004, the Company reported a net loss of ($0.7) million, or ($0.02) per diluted share, on revenues of $233.7 million. This compares to net earnings for the fiscal year ending December 27, 2003 of $19.8 million, or $0.43 per diluted share, on revenues of $263.8 million. Earnings for the fourth quarter of fiscal 2004 and the twelve months of 2004 include previously announced restructuring charges related to employee severance programs and the closure of two Company-owned manufacturing facilities, one in Mexico and one in South Carolina totaling $1.4 million and $4.8 million, respectively or $0.02 and $0.06 per share, respectively, as well as additional fourth quarter expenses totaling approximately $1.1 million or $0.02 per share consisting of unrealized foreign exchange losses, additional interest expense and the write-off of debt issuance costs. The Company's gross profit for the fourth quarter of 2004 totaled $9.2 million representing a 14.9 percent gross margin compared to a gross profit of $19.5 million and a gross margin of 29.8 percent in the fourth quarter last year. Steel costs, which more than doubled during fiscal 2004, weighed heavily on the Company's gross profit during the fourth quarter and throughout 2004. For the fiscal year ended December 31, 2004, the Company's gross profit totaled $39.3 million representing a 16.8 percent gross margin compared to $71.5 million and 27.1 percent for the prior fiscal year. The Company generated EBITDA (earnings plus income taxes, interest, depreciation and amortization) of ($1.5) million for the fourth quarter of 2004, down from the $9.0 million recorded during the fourth quarter of 2003. The decrease in EBITDA was principally due to the lower gross margin during the fourth quarter of 2004, as well as previously announced restructuring charges. EBITDA for the full fiscal year 2004 totaled $3.7 million compared to EBITDA of $37.0 million for the 2003 fiscal year. The Company had cash and cash equivalents of $98.7 million on hand at the end of 2004, $74.4 million of which was restricted for the previously announced acquisition of Williams Industrial Services Group, which is scheduled to close in early April 2005. Including the $69 million of convertible senior subordinated notes issued by the Company in November 2004, the Company's long-term debt totaled $78.8 million at the end of 2004. At the end of 2003, the Company had cash and cash equivalents of $51.3 million on hand and long-term debt of $25.0 million. "Our targeted sales efforts in a number of key markets produced very strong bookings of $153 million during the fourth quarter," stated Larry Edwards, Global Power Equipment Group's chairman and chief executive officer. "We successfully secured large orders in Europe, the United States and Asia, which we had been pursuing for many months." Mr. Edwards further stated, "For a number of months we have anticipated more robust market conditions outside of the United States and have shared this outlook with our shareholders. Clearly our strong fourth quarter bookings reflect the market upturn that we, along with others in our industry, have predicted. Unquestionably, the market environment has improved significantly and remains strong at the beginning of 2005. However, global steel prices advanced beyond what we anticipated and continue to weigh on our profitability. Our operating units are working diligently to manage this issue and we remain hopeful that steel prices will stabilize or possibly soften during the present year and help boost our gross margins. We are making every effort to pass on as much as possible these higher steel costs in what remains a very competitive market environment." As of December 31, 2004, the Company's firm backlog totaled $309 million compared to $218 million at the end of September 2004 and $179 million at the end of fiscal 2003. Approximately 84 percent of the Company's bookings during the fourth quarter were outside of the United States compared to 76 percent for the fourth quarter of 2003. For the full year, 76 percent of the Company's bookings originated from projects outside of the United States compared to 62 percent during 2003. Earnings Estimate Based upon information management currently has evaluated, in conjunction with this release, and anticipating an early April 2005 closing of the Williams Industrial Services Group (WISG) transaction, management estimates fiscal year 2005 revenue and earnings as follows: revenue of between $440 million and $490 million and diluted earnings per share of between $0.20 and $0.29, excluding the expenses associated with the announced retirement of Larry Edwards, the Company's present Chairman and CEO. These expenses are estimated to total approximately $1.8 million or $0.02 per diluted share. Incorporating the nine-month contribution of WISG for 2005, which is expected to contribute approximately $90 million of revenue at a gross profit of between $9.5 million to $10.4 million, and the impact of higher steel costs incorporated into orders received during the fourth quarter of 2004, the Company estimates that consolidated fiscal year 2005 gross profit could range between $57 million and $69 million. Excluding possible unrealized foreign currency gains or losses from currency hedging activities on international projects, the Company estimates earnings for the first quarter of 2005 should range between ($0.01) and $0.02 per diluted share on revenues of between $70 million and $80 million and a gross profit of between $9 million and $11 million. Non-GAAP Financial Measures This release contains disclosure of EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of EBITDA to net income available to common stockholders is included in the exhibits to this release. About Global Power Equipment Group Oklahoma based Global Power Equipment Group Inc. is a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global energy, power infrastructure and process industries. The Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 30 years of power generation industry experience. The Company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents and believes, in its product lines, it has one of the largest installed bases of equipment for power generation in the world. In addition, the Company provides its customers with value-added services including engineering, retrofit, maintenance and repair. Additional information about Global Power Equipment Group may be found at http://www.globalpower.com/ . Statements contained in this release regarding the Company's or management's intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected, including decreased demand for new gas turbine power plants, the loss of any of our major customers, the cancellation of projects, project cost overruns, including increases in prices for materials such as steel, and unforeseen schedule delays, any delay or failure to close the acquisition of Williams Industrial Services Group, competition for the sale of our products or services, poor performance by our subcontractors, warranty and product liability claims, and changes in the economic, social and political conditions in the countries in which we operate, including fluctuations in foreign currency exchange rates. Information concerning some of the other factors that could cause actual results to differ materially from those in, or implied by, the forward looking statements are set forth under "Risk Factors" in the Company's Form 10-K for the period ended December 27, 2003, and other reports on file with the U.S. Securities and Exchange Commission. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Company Contact: Bob Zwerneman Director of Investor Relations (918) 274-2398 GLOBAL POWER EQUIPMENT GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) Three Months Ended Twelve Months Ended Dec. 31, Dec. 27, Dec. 31, Dec. 27, 2004 2003 2004 2003 Revenues $61,825 $65,449 $233,692 $263,778 Cost of sales 52,609 45,967 194,435 192,281 Gross profit 9,216 19,482 39,257 71,497 Selling and administrative expenses 11,591 11,386 39,162 38,083 Operating income (loss) (2,375) 8,096 95 33,414 Interest expense 785 286 1,281 1,504 Income (loss) before income taxes and minority interest (3,160) 7,810 (1,186) 31,910 Income tax provision (benefit) (1,201) 2,727 (451) 12,126 Income (loss) before minority interest (1,959) 5,083 (735) 19,784 Minority interest (30) --- (30) --- Net income (loss) available to common stockholders $(1,929) $5,083 $(705) $19,784 Basic income (loss) per common share Weighted average shares outstanding- basic 46,432 45,100 46,195 44,521 Net income (loss) available to common stockholders $(0.04) $0.11 $(0.02) $0.44 Diluted income (loss) per common share Weighted average shares outstanding- diluted 46,432 46,196 46,195 45,911 Net income (loss) available to common stockholders $(0.04) $0.11 $(0.02) $0.43 GLOBAL POWER EQUIPMENT GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 27, 2004 2003 ASSETS Current assets: Cash and cash equivalents $24,331 $51,315 Restricted cash 74,357 --- Accounts receivable, net of allowance of $894 and $1,325 40,260 42,582 Inventories 8,857 3,013 Costs and estimated earnings in excess of billings 60,861 40,706 Deferred tax assets 10,576 17,315 Other current assets 15,966 3,983 Total current assets 235,208 158,914 Property, plant and equipment, net 22,983 20,740 Deferred tax assets 51,030 55,094 Goodwill, net 45,000 45,000 Other assets 12,673 1,248 Total assets $366,894 $280,996 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $16,854 $14 Accounts payable 27,852 18,974 Accrued compensation and employee benefits 4,545 7,285 Accrued warranty 9,758 15,004 Billings in excess of costs and estimated earnings 52,707 53,293 Other current liabilities 8,005 5,203 Total current liabilities 119,721 99,773 Other long-term liabilities 4,374 1,888 Long-term debt, net of current maturities 78,750 24,949 Commitments and contingencies Minority interest 1,629 --- Stockholders' equity Common stock 468 452 Paid-in capital deficit (17,698) (25,492) Deferred compensation (91) --- Accumulated comprehensive income 3,636 2,616 Retained earnings 176,105 176,810 Total stockholders' equity 162,420 154,386 Total liabilities and equity $366,894 $280,996 GLOBAL POWER EQUIPMENT GROUP INC. SUPPLEMENTAL STATISTICAL INFORMATION (in thousands) Three Months Twelve Months Ended Ended Dec. 31, Dec. 27, Dec. 31, Dec. 27, 2004 2003 2004 2003 Net income (loss) $(1,929) $5,083 $(705) $19,784 Add back: Income tax provision (benefit) (1,201) 2,727 (451) 12,126 Interest expense 785 286 1,281 1,504 Depreciation and amortization 810 883 3,583 3,563 EBITDA (A) $(1,535) $8,979 $3,708 $36,977 (A) EBITDA represents net income plus income taxes, interest, depreciation and amortization. While considered the most common definition used by investors and financial analysts, the EBITDA presented above may not be comparable to similarly titled measures reported by other companies. The Company believes that EBITDA, while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined under GAAP. DATASOURCE: Global Power Equipment Group Inc. CONTACT: Bob Zwerneman, Director of Investor Relations of Global Power Equipment Group Inc., +1-918-274-2398 Web site: http://www.globalpower.com/

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