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. # # #