Contact:  Scott N. Greenberg
          GP Strategies Corporation
          Executive Vice President and
          Chief Financial Officer
          (212) 230-9529



     GP STRATEGIES CORPORATION ANNOUNCES THE SALE OF ALL OPERATING ASSETS OF
               THE FIVE STAR GROUP, INC. TO AMERICAN DRUG COMPANY


FOR IMMEDIATE RELEASE:

     New York, New York, October 1, 1998, . . . . . . GP Strategies  Corporation
(NYSE:GPX)  announced  today  that its  wholly-owned  subsidiary,  the Five Star
Group,  Inc.  (Five Star) has sold  substantially  all of Five Star's  operating
assets to American Drug Company (OTC-ADRG) for approximately $16,500,000 in cash
and a $5,000,000 unsecured senior note. As previously  announced,  GP Strategies
used  the  cash  proceeds  of the  transaction  to repay  Five  Star's  existing
short-term borrowings, thereby reducing GP Strategies short-term debt. Five Star
is a leading distributor of home decorating,  hardware and finishing products in
the  northeast.  GP  Strategies  has sold  approximately  16% of its interest in
American Drug to the management of Five Star,  bringing GP Strategies'  interest
in American Drug to approximately 38%.

      As a result of the  proposed  transaction,  GP  Strategies  will no longer
consolidate  the operations of Five Star, but will instead account for Five Star
as an investment.  For the year ended December 31, 1997,  Five Star had sales of
$82,300,000.  With the conclusion of this transaction over 95% of GP Strategies'
revenues will be derived from the performance improvement and training industry.

      GP Strategies principal operating subsidiary, General Physics Corporation,
now  with  over  2100  employees  located  in  75  offices  worldwide,  provides
performance  improvement  services to Fortune 500 companies,  manufacturing  and
process  industries,   electric  power  utilities,   and  other  commercial  and
governmental customers.


             




      The  forward-looking  statements  contained  herein reflect GP Strategies'
management's   current  view  with  respect  to  future   events  and  financial
performance.  These forward -looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking  statements,  all of which are difficult to predict and many
of which are beyond the control of GP Strategies,  including but not limited to,
the risks that the sale of certain assets of Five Star to American Drug will not
be  completed,  and those risks and  uncertainties  detailed  in GP  Strategies'
periodic  reports and  registration  statements  filed with the  Securities  and
Exchange Commission.









                                           # # #