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Global Power Equipment Group Successfully Emerges From Chapter 11

TULSA, Okla., Jan. 22 /PRNewswire/ --

TULSA, Okla., Jan. 22 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. ("Global Power") today announced that it has successfully reorganized its business operations and emerged from chapter 11 bankruptcy protection. The company has completed the steps necessary to cause its Plan of Reorganization (the "Plan") to become effective, including securing $150 million in exit financing and completing its previously announced rights offering and private placement that raised $71 million in new capital for the company.

"Today, after almost a year and half in the bankruptcy process, our company achieved an extraordinary milestone and exited chapter 11 with a sound financial position in order to remain a global leader as an equipment and services provider to the power infrastructure, energy and process industries," said John Matheson, President and Chief Executive Officer of Global Power. "Our dedicated employees and management team have a great sense of pride for our company's accomplishments and remain committed to serving our strong customer base. We thank our customers and stakeholders for their perseverance, and going forward we pledge to continue providing the highest quality products and services."

Consistent with the terms of the order confirming the Plan, the company entered into a $150 million exit financing package with a group of lenders led by Morgan Stanley Senior Funding, Inc., as lead arranger, bookrunner and administrative agent. The exit financing package consists of a $60,000,000 revolving credit facility and a $90,000,000 term loan.

In accordance with the Plan, the funds from the exit financing and new equity investment will be used, in part, to pay all allowed creditor claims of Global Power and its Williams and Braden subsidiaries in full. A separate cash reserve of $34 million has been established for the payment of allowed unsecured claims against the company's Deltak, L.L.C. subsidiary.

In addition to the payment of allowed claims, Global Power will also be issuing approximately 134 million shares of new common stock to its shareholders and participants in the new equity investment, and it will issue warrants for approximately 16 million additional shares as consideration to the group of shareholders that fully backstopped the rights offering and private placement. Under the rights offering and private placement, the share price was dependant upon the final amount of equity capital raised by the company. The final amount of equity capital raised by the company was $71 million, resulting in a per share price of $0.85 for the new common stock issued pursuant to the Plan. The company has begun its initial distributions of cash and new common stock provided for under the Plan and it expects to complete initial distributions by the end of January 2008.

With the company's successful emergence from chapter 11, Global Power has a new five-member board of directors. The directors, in addition to John Matheson, are Carl Bartoli, Terence Cryan, Eugene I. Davis, and Charles Macaluso.

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 power infrastructure, energy and process industries. In addition, the Company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. 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 40 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. The Company believes, in its product lines, it has one of the largest installed bases of equipment for power generation in the world. Additional information about Global Power Equipment Group may be found at http://www.globalpower.com.

Contact: Michael Hanson Chief Financial Officer Global Power Equipment Group 918-488-0828