GSE Systems Receives $3.7 Million Payment from International Customer

GSE Systems (NYSE: GVP), a global energy services solutions provider, today announced that it received a $3.7 million payment from its customer, Slovenské elektrárne, a.s. (“SE”), with which GSE is providing a full scope simulator for a two unit reactor plant in Slovakia. At June 30, 2012, GSE had a $5.6 million outstanding invoice related to the SE project included in contracts receivable; this $3.7 million payment will be reflected in GSE's financial statements for the third quarter ending September 30, 2012. SE has agreed to remit the $1.9 million balance at the project's completion, which is currently estimated to be November 2013. As previously disclosed, in May 2012 SE notified GSE of its decision to suspend work under the contract due to changes in the Slovakian regulation requiring SE to redesign certain aspects of the plant; this suspension was not related to work being performed by GSE. Since May 2012, at the request of SE, GSE has provided a two-person engineering team who are supporting the project during its suspension, which is currently expected to continue until May 2013. Both parties continue to discuss a number of amendments to the existing contract.