First Quarter Operating Expenses Lowest Levels in 4 YearsGross Margin Increases Continue CHANTILLY, Va., May 7, 2008 "(pressreleasepoint)" -- GTSI Corp.(R) (NASDAQ:GTSI), an enterprise solutions and services provider to government, today released financial and operating results for the first quarter of 2008."During the quarter we made significant progress in differentiating our offerings by leveraging our product expertise with financial and professional services. The results for this quarter are encouraging as gross margins are increasing, expenses are declining and our balance sheet is strong," said Jim Leto, GTSI's Chief Executive Officer. "In the fourth quarter of 2007 we saw several opportunities push into 2008 as a result of federal agency budget funding issues. As we stated previously, we expected that some of these opportunities would be pushed into the first quarter enabling us to take advantage of our reach across many agencies. This was the case."Our realignment on solutions and focus on a core set of strategic partners has positioned GTSI's sales to pursue larger and more complex transactions," said Leto. "During the quarter we operated at an enhanced level which allowed GTSI to reach the next level of business maturation. Key metrics at most levels indicate that GTSI has stabilized and as a result, our sales and services teams are able to focus more on anticipating and meeting our customers' ever growing technology needs."For the first quarter of 2008, GTSI reported sales of $142.8 million, a 2.6% decline from $146.6 million in the first quarter of 2007, and a net loss of $5.1 million ($0.52 per share) an improvement over a net loss of $6.9 million ($0.73 per share) reported in the first quarter of 2007. Net loss decreased in the first quarter of 2008 from the same period in 2007 due to stronger performance in financial services, higher gross margins and reduced operating expenses. Selling, general and administrative expenses were $25.9 million, down from $26.2 million for the same period in 2007.Gross margin dollars in the first quarter of 2008 were $21.4 million with gross margin as a percentage of sales increasing to 15.0% in the period, compared to $20.2 million with a gross margin percentage of 13.8% in the first quarter of 2007.Operations and Financial UpdateJoe Ragan, GTSI's Senior Vice President and Chief Financial Officer, said, "GTSI ended the quarter with a healthy balance sheet. We paid off $10 million of subordinated debt from cash generated by the business and we ended the quarter with zero drawn on our revolving credit facility. Our days sales outstanding (DSO) at the end of the quarter was 35 days. We saw overall sales decrease and the gross margin percentage increase as the company continued to focus on larger opportunities as well as continuing our vendor rationalization plan with more complex transactions and fewer technology partners."We reduced our net loss during the quarter in keeping with our goal to return to profitability," said Ragan. "Based upon the performance of the first quarter and coupled with the strong pipeline of large solutions opportunities in sight, we believe that 2008 will maintain our trend of continuing financial and operational improvement."Conference CallAn investor conference call to discuss first quarter results is scheduled for 11:00 a.m. Eastern Time, May 7, 2008. Interested parties are invited to participate by calling 800-593-9034 or 334-323-7224, pass code is GTSI. In addition, you may access the webcast on GTSI's Investor Relations page (www.gtsi.com/ir). Webcast will be available for replay through May 15, 2009. To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. A replay will be available following the conclusion of the call until 6:00 p.m. Eastern Time, May 15, 2008. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 81726185.About GTSI Corp.GTSI Corp. is the first information technology solutions provider offering 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 government agencies to implement solutions of national and local significance quickly and cost-effectively. GTSI's 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 governments' current and future requirements and business objectives. GTSI is headquartered in Northern Virginia, outside of Washington, D.C. Further information about the Company is available at www.GTSI.com/About.