Techteam Global 8-K TechTeam Global Reports Fourth Quarter 2007 Financial Results

NASDAQ-GM — “TEAM”

FOR IMMEDIATE RELEASE, Tuesday, February 19, 2008

TechTeam Global Reports Fourth Quarter 2007 Financial Results

SOUTHFIELD, MICHIGAN, February 19, 2008…TechTeam Global, Inc. (the “Company”) (Nasdaq: TEAM), a worldwide provider of information technology, enterprise support and business process outsourcing services, today reported net income of $1.8 million, or $0.17 per diluted share, for the three months ended December 31, 2007, which was a 50% increase over net income of $1.2 million, or $0.12 per diluted share, reported for the same period last year. For the 2007 fiscal year, the Company reported net income of $6.3 million, or $0.60 per diluted share, which more than tripled reported net income of $1.8 million, or $0.18 per diluted share, for the 2006 fiscal year.

Fourth quarter highlights include the following:

· Total revenue of $64.3 million increased 46.6% over last year through a combination of growth via acquisitions and 17.6% organic growth (growth without acquisitions).

· Revenue from the Company’s commercial business of $42.9 million increased 33.2% over last year through a combination of growth via acquisitions and 19.6% organic growth.

· Revenue from the Company’s government business of $21.5 million increased 83.4% over last year primarily due to acquisitions and 11.8% organic growth.

“TechTeam achieved another quarter of growth, record revenue and improved year-over-year profitability in the fourth quarter. This was our fifth consecutive quarter of record revenue and solid profits that closed out a very successful year for the company,” said Gary J. Cotshott, President and Chief Executive Officer. “As we look to 2008 and beyond, the company has many untapped opportunities for new growth that complement the solid foundation that TechTeam has built. We will continue to focus on providing best-in-class information technology solutions and services that address the growing need for process improvement, cost optimization and selective outsourcing within the IT organizations of both commercial and government customers.”

Cotshott added, “TechTeam has achieved some momentum in growth and earnings. I look forward to building on this momentum with a strategy focused on continued organic and acquired growth and improved profitability. TechTeam is well positioned to deliver double digit organic revenue growth for 2008 after annualizing the impact of acquisitions made in 2007. In addition, while making some investments in our service delivery infrastructure and sales and marketing functions, we believe that we will achieve continued improvements in margins and scale our SG&A expenses as a percent of revenue in 2008 as we continue our focus on maximizing shareholder value.”

27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

Total Company revenue increased 46.6% to $64.3 million for the fourth quarter of 2007, from $43.9 million for the same period in 2006, through a combination of growth through acquisitions and organic growth from both new and existing customers. Excluding revenue contributed by three acquisitions completed in 2007, total revenue increased 17.6% to $51.6 million for the fourth quarter of 2007. This organic growth in revenue reached almost 20% in the commercial business and almost 12% in the government business. Revenue from the commercial business for the fourth quarter of 2007 was favorably impacted by approximately $2.0 million from the weakening of the U.S. dollar over the fourth quarter of 2006 relative to the international currencies in which the Company conducts business.

Gross profit increased 45.3% to $16.0 million for the fourth quarter of 2007, from $11.0 million for the same period in 2006. The Company’s gross margin (gross profit as a percent of revenue) was essentially flat with the same period in 2006. Gross margins in the quarter were affected by unique project and new account launch-related costs. Excluding the gross profit contributed by acquisitions completed in 2007, fourth quarter gross profit increased 14.8% to $12.6 million. Gross profit from the Company’s commercial business increased 31.1% to $10.2 million and gross profit from the Company’s government business increased 80.0% to $5.8 million.

While increasing on a dollar basis, selling, general and administrative (“SG&A”) expense decreased as a percentage of revenue from 21.5% to 19.9% in the fourth quarter of 2007, compared to the same period last year. This improvement occurred in spite of higher employee recruiting-related expenses, costs related to the Company’s CEO succession plan, some higher than normal travel expenses, and the weakening of the U.S. dollar from the fourth quarter of 2006. Excluding acquisitions completed in 2007, SG&A expense was $10.3 million, or 19.9% of revenue, for the fourth quarter of 2007.

Operating income increased to $3.2 million, or 5.0% of revenue, for the fourth quarter of 2007, from $1.6 million, or 3.6% of revenue, for the same period in 2006. The improvement in operating income and operating margin was driven by the acceleration of revenue growth throughout 2007.

Other components of TechTeam’s fourth quarter 2007 performance include the following:

· In the Company’s commercial business, revenue in the Americas increased 9.3% to $17.9 million and European revenue increased 58.0% to $25.0 million for the fourth quarter of 2007. Excluding acquisitions, organic revenue in Europe increased 30.4% to $20.6 million. Although revenue from Europe in 2007 was favorably impacted by the weakening of the U.S. dollar by approximately $2.0 million relative to the fourth quarter of 2006, Europe continued to show very strong growth in 2007 over 2006.

· For the fourth quarter of 2007, earnings before interest, taxes, depreciation and amortization expense (“EBITDA”) increased 80.5% to $5.2 million, or 8.0% of revenue, compared with EBITDA of $2.9 million, or 6.5% of revenue, for the same period in 2006.

The Company believes EBITDA is an important “non-GAAP” measure of the Company’s financial performance. EBITDA presents information on earnings that may be more comparable to companies with different finance structures, capital investments or capitalization and depreciation policies. The most closely related GAAP measure is operating income. Some financial analysts also use EBITDA to assist in the determination of a company’s possible market valuation. (See the table following the financial statements contained in this press release for a reconciliation of operating income to EBITDA.)

 27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

· As of December 31, 2007, the Company had 10,693,488 common shares issued and outstanding.

Conference Call Information

TechTeam Global, Inc. will also host an investor teleconference to discuss its fourth quarter 2007 financial results at 4:30 p.m. EST, today, Tuesday, February 19, 2008. To participate in the teleconference, including the question and answer session that will follow the results announcement and discussion, please call 1-866-578-5784. (Outside the United States, call +1-617-213-8056.) When prompted, enter the passcode: 39104607. To access a simultaneous Web cast of the teleconference, go to the TechTeam Global Web site at http://www.techteam.com/investors and click on the Web cast icon. From this site, you can download the necessary software and listen to the teleconference. TechTeam encourages you to review the site before the teleconference to ensure that your computer is configured properly.

A taped replay of the call will be available beginning at approximately 6:30 p.m. EST, Tuesday, February 19, 2008. This toll-free replay will be available through Tuesday, March 4, 2008. To listen to the teleconference replay, call 1-888-286-8010. (Outside the United States, call +1-617-801-6888.) When prompted, enter the passcode: 62715694.

About TechTeam Global, Inc.

TechTeam Global, Inc. is a worldwide provider of information technology, enterprise support and business process outsourcing services to Fortune 1000 corporations, multinational companies, product providers, small and medium-sized companies, and government entities. TechTeam’s ability to integrate computer services into a flexible, ITIL-based solution is a key element of its strategy. Partnerships with some of the world’s “best-in-class” corporations provide TechTeam with unique expertise and experience in providing information technology support solutions. For information about TechTeam Global, Inc. and its services, call 800-522-4451 from the United States or visit our Web sites at www.techteam.com and www.techteam.eu. TechTeam’s common stock is traded on the Nasdaq Global Market under the symbol “TEAM.”

 27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

Safe Harbor Statement

The statements contained in this press release that are not purely historical, including statements regarding the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding, among other things, the growth of the Company’s core business, revenue and earnings performance going forward, management of overhead expenses, productivity and operating expenses. Forward-looking statements may be identified by words including, but not limited to, “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon” and similar expressions. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Such factors include, but are not limited to, the award or loss of significant client assignments, timing of contracts, recruiting and new business solicitation efforts, the Company’s ability to recruit and retain highly-qualified executives, the market’s acceptance of and demand for the Company’s offerings, competition, unforeseen expenses, the costs and risks associated with executing an offshore strategy, demands upon and consumption of the Company’s cash and cash equivalent resources or changes in the Company’s access to working capital, currency fluctuations, changes in the quantity of the Company’s common stock outstanding, regulatory changes and other factors affecting the financial constraints on the Company’s clients, economic factors specific to the U.S. Federal Government and automotive industry, general economic conditions, unforeseen disruptions in transportation, communications or other infrastructure components, unforeseen or unplanned delays in the Company’s ability to consummate acquisitions, and the Company’s ability to successfully integrate acquisitions on a timely basis. All forward-looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statement. Prospective investors should also review all aspects of the Company’s Reports on Forms 8-K, 10-Q, and 10-K filed with the United States Securities and Exchange Commission, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the risks described therein from time to time.

Financial Tables to Follow on the Next Page

 27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

Financial Data

TechTeam Global, Inc.

Condensed Consolidated Statements of Operations (unaudited)

(In thousands, except per share data)

	Three Months Ended December 31,									Year Ended December 31,
	2007			2006			% Change			2007			2006			% Change
Revenue
Commercial —
IT Outsourcing Services	$	29,388		$	23,356			25.8	%	$	104,659		$	86,461			21.0	%
IT Consulting and Systems Integration		7,484			6,573			13.9	%		28,064			24,013			16.9	%
Other Services		5,980			2,240			167	%		20,219			9,497			113	%
Total Commercial		42,852			32,169			33.2	%		152,942			119,971			27.5	%
Government Technology Services		21,456			11,702			83.4	%		69,254			47,393			46.1	%
Total Revenue		64,308			43,871			46.6	%		222,196			167,364			32.8	%
Cost of Revenue
Commercial —
IT Outsourcing Services		21,765			17,360			25.4	%		77,771			65,359			19.0	%
Asset impairment loss		—			—			—			—			580			—
Total IT Outsourcing Services		21,765			17,360			25.4	%		77,771			65,939			17.9	%
IT Consulting and Systems Integration		6,008			5,053			18.9	%		21,877			18,272			19.7	%
Other Services		4,849			1,950			149	%		15,430			7,887			95.6	%
Total Commercial		32,622			24,363			33.9	%		115,078			92,098			25.0	%
Government Technology Services		15,671			8,489			84.6	%		50,276			34,789			44.5	%
Total Cost of Revenue		48,293			32,852			47.0	%		165,354			126,887			30.3	%
Gross Profit		16,015			11,019			45.3	%		56,842			40,477			40.4	%
Selling, general and administrative expense		12,809			9,445			35.6	%		46,547			38,317			21.5	%
Operating Income		3,206			1,574			104	%		10,295			2,160			377	%
Net interest income (expense)		(389	)		251						(572	)		776
Foreign currency transaction loss		(65	)		(83	)					(84	)		(186	)
Income before Income Taxes		2,752			1,742						9,639			2,750
Income tax provision		947			508						3,343			873
Income from Continuing Operations		1,805			1,234						6,296			1,877
Loss from discontinued operations, net		—			(32	)					—			(43	)
Net Income	$	1,805		$	1,202					$	6,296		$	1,834
Diluted Earnings per Common Share	$	0.17		$	0.12					$	0.60		$	0.18
Diluted weighted average common shares and common share equivalents		10,595			10,300						10,506			10,176

  27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

Condensed Consolidated Balance Sheet (unaudited)

(In thousands)

	As of December 31,
	2007		2006
Current Assets
Cash and cash equivalents	$	19,431	$	30,082
Accounts receivable, net		69,627		41,189
Prepaid expenses and other current assets		5,290		5,096
Total current assets		94,348		76,367
Property, Equipment and Software, Net		10,562		9,117
Goodwill and Other Intangible Assets, Net		75,322		31,703
Other Assets		573		743
Total Assets	$	180,805	$	117,930
Current Liabilities
Current portion of long-term debt	$	5,850	$	—
Accounts payable		20,952		8,350
Accrued payroll and related taxes		13,705		9,512
Accrued expenses and other current liabilities		9,717		8,334
Total current liabilities		50,224		26,196
Long-Term Liabilities
Long-term debt, less current portion		31,167		3,174
Deferred income taxes		1,325		1,690
Other long-term liabilities		1,058		562
Total long-term liabilities		33,550		5,426
Shareholders’ Equity
Preferred stock		—		—
Common stock		107		104
Additional paid-in capital		75,364		71,672
Retained earnings		18,391		12,095
Accumulated other comprehensive income		3,169		2,437
Total shareholders’ equity		97,031		86,308
Total Liabilities and Shareholders’ Equity	$	180,805	$	117,930

 27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

Condensed Consolidated Statements of Cash Flows (unaudited)

(In thousands)

	Year Ended December 31,
	2007			2006
Operating Activities
Net income	$	6,296		$	1,834
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		7,006			5,148
Asset impairment loss		—			580
Other adjustments, primarily changes in working capital		(7,371	)		(4,276	)
Loss from discontinued operations		—			43
Net operating cash flow from discontinued operations		(3	)		62
Net cash provided by (used in) operating activities		5,928			3,391
Investing Activities
Purchase of property, equipment and software		(3,882	)		(4,182	)
Cash paid for acquisitions, net of cash acquired		(47,160	)		(494	)
Net cash used in investing activities		(51,042	)		(4,676	)
Financing Activities
Proceeds from issuance of long-term debt		38,900			—
Proceeds from issuance of common stock		1,085			2,542
Tax benefit from stock options		570			497
Payments on long-term debt		(6,299	)		(7,763	)
Net cash provided by (used in) financing activities		34,256			(4,724	)
Effect of exchange rate changes on cash and cash equivalents		207			1,335
Decrease in cash and cash equivalents		(10,651	)		(4,674	)
Cash and cash equivalents at beginning of period		30,082			34,756
Cash and cash equivalents at end of period	$	19,431		$	30,082

27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com

Reconciliation of Operating Income to EBITDA from Continuing Operations

(In thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
Reconciliation of Operating Income to EBITDA
Operating income	$	3,206		$	1,574		$	10,295		$	2,160
Depreciation and amortization		2,032			1,375			7,006			5,728
Foreign currency transaction loss		(65	)		(83	)		(84	)		(186	)
EBITDA from Continuing Operations	$	5,173		$	2,866		$	17,217		$	7,702

###

Contacts:

TechTeam Global, Inc.

Marc J. Lichtman

Vice President, Chief Financial Officer and Treasurer

(248) 357-2866

marc.lichtman@techteam.com

 27335 West 11 Mile Road, Southfield, Michigan 48033 · Telephone (248) 357-2866 · Fax (248) 357-2570 · www.techteam.com