TGIS Thomas Grp., Inc. (MM)

Thomas Group, Inc. (NasdaqGM:TGIS) today announced, in a filing with the Securities and Exchange Commission that, as permitted under SEC Rule 12b-25, it would extend the time to file its Annual Report on Form 10-K as a result of the pending restatement of the Company�s historical financial statements noted below. The Company currently anticipates that the Form 10-K will be filed on or before April 17, 2007. On March 16, 2007, the Company announced that its Board of Directors, Audit Committee and management concluded that the Company would need to restate its financial statements and related footnote disclosures for fiscal years ending December 31, 2002 through 2005 and the first three quarters of the 2006 fiscal year. This conclusion was the result of a voluntary review of the Company�s historical stock option granting procedures initiated in connection with the assessment of the Company�s historical capitalization documentation and not in response to any specific concerns from within the Company about option practices or any inquiry from the Securities and Exchange Commission or any other regulatory agency. As indicated in the Company�s release of revenue and selected financial data, furnished to the SEC on Form 8-K on February 5, 2007, the Company�s revenues for the fourth quarter of 2006 were $14.8 million compared to $11.7 million in the fourth quarter of 2005. For the year 2006, revenues were $59.5 million compared to $43.1 million for the year 2005. As indicated in the Company�s release announcing the need to restate the Company�s historical financial statements for the periods indicated above, filed with the SEC on Form 8-K on March 19, 2007, the Company has identified non-cash, stock-based compensation charges of approximately $200,000 that will impact amounts previously reported during years 2002 through 2005 and the first three quarters of 2006. In addition, approximately $2.0 million will be reclassified from retained earnings to additional paid-in capital at January 1, 2002 to reflect similar charges relating to options that were granted between August 19, 1993 (the date of the Company�s initial public offering) and December 31, 2001. The Company believes that these charges, resulting from the differences in accounting measurement dates, will not have an impact on its historical revenues, cash position or non-stock option related operating expenses, nor does the Company believe it will have a material impact on the operations of the Company going forward. Thomas Group, Inc. (NasdaqGM: TGIS) is an international, publicly traded professional services firm specializing in operational improvements. Thomas Group's unique brand of process improvement and performance management services enable businesses to enhance operations, improve productivity and quality, reduce costs, generate cash and drive higher profitability. Known as The Results Company(SM), Thomas Group creates and implements customized improvement strategies for sustained performance improvements in all facets of the business enterprise. Thomas Group has offices in Dallas, Detroit, and Hong Kong. For additional information on Thomas Group, Inc., please go to www.thomasgroup.com. Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements in this release that are not strictly historical are �forward-looking� statements, which should be considered as subject to the many uncertainties that exist in the Company�s operations and business environment. These uncertainties, which include economic and business conditions that may impact clients and the Company�s performance-oriented fees, timing of contracts and revenue recognition, competitive and cost factors, and the like, are set forth in the Company�s filings from time to time with the Securities and Exchange Commission, including the Company�s Form 10-K for the year ended December 31, 2005. Except as required by law, the Company expressly disclaims any intent or obligation to update any forward-looking statements.