Nasdaq notifies GTSI of possible delisting

GTSI, a government technology solutions provider, announced that it has received notification from Nasdaq that its common stock is subject to delisting because the company has not filed its Form10-Q quarterly report for the period ending June 30 with the Securities and Exchange Commission, as the SEC requires.

GTSI said it plans to request a hearing with Nasdaq, which would stay the delisting pending the determination of the hearing panel.

“While there is no assurance, the company expects to avoid delisting of its common stock from the Nasdaq National Market by filing its Form 10-Q for June 30, 2006, with the SEC before delisting would otherwise take effect,” GTSI said in a statement released today.

Jim Leto, GTSI president and chief executive officer, said the notification is standard operating procedure. He announced earlier this month that the company was amending and restating its 2004, 2005 and first-quarter 2006 financial statements because of accounting errors.

“We are confident that the thorough review of our financials is the prudent action to take, which resulted in the late filing of the 10-Q,” he said in the statement. “We look forward to presenting our plan of action to Nasdaq's hearing panel.”

GTSI also announced that Joe Ragan, formerly vice president of finance and corporate controller, has been named senior vice president of finance and chief financial officer.

Ragan succeeds Tom Mutryn, who is leaving the company after three and a half years.

“Coming into 2006, I asked Tom to focus on three goals: securing new bank financing, improving our liquidity and strengthening our accounting team,” Leto said. “Tom has achieved each of those critical goals, and he now feels the time is right for him to explore new opportunities. We wish him well, and we are grateful for his contribution, dedication and hard work.”