http://www.gses.com

AT THE COMPANY
John V. Moran
Chief Executive Officer


FOR IMMEDIATE RELEASE


              GSE Systems Secures $15 Million Contract To Develop
               Simulation Training Center in the Arab Gulf Region

Baltimore,  Maryland, January 5, 2006 -- GSE Systems, Inc. (GSE) (Amex - GVP), a
leading global  provider of real time  simulation and training  solutions to the
power, process,  manufacturing and Government sectors, announced today the award
of a major contract from the Emirates  Simulation  Academy,  LLC, located in the
United Arab Emirates. GSE will provide five real-time,  high fidelity simulators
including a gas turbine power plant,  a  desalination  plant,  a combined  cycle
plant,  a petroleum  refinery  and an oil  platform.  In  addition,  GSE will be
responsible for developing the training programs associated with the simulators,
as well as the development of traditional classroom and online training content.

     The contract  amount is slightly  over $15 million  (US).  An option in the
contract to  purchase  hardware  would add an  additional  $1.4  million to this
amount. This represents the largest single contract award since the Company went
public in 1995.  Revenue from the contract is expected to be recognized over the
next 20 months.  The first Emirates  Simulation Academy is scheduled to be fully
operational by September  2007, and will be located in Abu Dhabi.  Locations for
additional Academies are currently being developed.

     John V. Moran,  GSE's CEO,  stated "Our team,  led by Hal Paris and Michael
Feldman,  has been  working with  partners in the Arab Gulf  Region,  as well as
other regions of the world, to develop training centers that utilize  simulation
as a core element of the training  program.  We are very pleased to be a part of
this critically important Gulf Region initiative. GSE believes simulation is the
most effective  training platform for adult learners,  and its strategy is based
upon providing  simulators as well as the training services and content required
for a complete training solution.  This "turn-key"  approach allows customers to
bring their training  centers on line rapidly with the best training  technology
and content available."

     *  * *

     GSE Systems, Inc. provides real-time simulation and training solutions. The
company has over three decades of experience,  over 265  installations,  and 100
customers in more than 25  countries.  Our  software,  hardware  and  integrated
training solutions leverage proven  technologies to deliver real-world  business
advantages  to  the  energy,  process,   manufacturing  and  Government  sectors
worldwide.  GSE  Systems is  headquartered  in  Baltimore,  Maryland.  Our other
locations include offices in St. Mary's, Georgia, Sweden, and China. Information
about GSE Systems is available via the Internet at http://www.gses.com.

This news release  contains  forward-looking  statements  that involve risks and
uncertainties.   We use words such as "expects",  "intends" and "anticipates" to
indicate  forward looking  statements.  The actual future results of GSE Systems
may differ materially due to a number of factors,  including but not limited to,
delays  in  introduction  of  products  or  enhancements,  size  and  timing  of
individual  orders,  rapid  technological  changes,  market  acceptance  of  new
products and  competition.   These and other factors are more fully discussed in
the Company's  annual  report,  and in statements  filed with the Securities and
Exchange Commission.

If any one or more of  these  expectations  and  assumptions  proves  incorrect,
actual  results will likely differ  materially  from those  contemplated  by the
forward-looking  statements.  Even  if  all  of the  foregoing  assumptions  and
expectations  prove  correct,  actual results may still differ  materially  from
those expressed in the forward-looking  statements as a result of factors we may
not  anticipate  or that may be beyond our control.  While we cannot  assess the
future  impact  that  any of  these  differences  could  have  on our  business,
financial condition, results of operations and cash flows or the market price of
shares of our common stock,  the  differences  could be  significant.  We do not
undertake to update any forward-looking statements made by us.