[TECHTEAM LOGO] NEWSRELEASE
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NASDAQ-NM -- "TEAM"
FOR IMMEDIATE RELEASE, Tuesday, April 4, 2006
TECHTEAM REVEALS INTERNAL INVESTIGATION INTO POSSIBLE MISCONDUCT
BOARD 'PUZZLED' BY COSTA BRAVA'S ABRUPT TERMINATION OF TALKS FOLLOWING
REVELATION
SOUTHFIELD, MICHIGAN, April 4, 2006... TechTeam Global, Inc. (Nasdaq: TEAM) (the
"Company" or "TechTeam") Board of Directors revealed today that before Costa
Brava Partnership III, L.P. ("Costa Brava") abruptly ended discussions about a
unity slate of directors last Friday, the Board had asked for a delay in
concluding the agreement pending the outcome of an internal investigation into
possible misconduct by the Company's Chief Financial Officer, who was
responsible for investor relations.
"We have serious concerns about the potential misconduct, and we are working to
finalize our investigation so we can understand the full ramifications of the
potential misconduct both inside and outside the Company," said Board Chairman
Kim A. Cooper. "So we informed Costa Brava that we felt it necessary to wait
until our independent legal counsel completes its inquiry into possible
unauthorized disclosure of confidential information to Costa Brava."
Cooper emphasized that the potential misconduct by the Company's Chief Financial
Officer did not relate to the Company's financial statements, and therefore, the
integrity of the company's financial statements is not in question.
"In view of the circumstances, we are both disappointed and puzzled that Costa
Brava elected to unilaterally terminate discussions," Cooper said. "We had hoped
that they would agree to delay their plan to wage a proxy contest until the
relevant facts could be discovered. Pending the outcome of the inquiry, the
Board may wish to seek a resumption of discussions with Costa Brava."
The Company's former Chief Financial Officer, David W. Morgan, was suspended
Wednesday, March 29, 2006, and subsequently resigned. Marc J. Lichtman, who has
been TechTeam's Vice President and Chief Accounting Officer since 2004, will
continue to oversee the Company's financial functions.
The internal investigation is being led by David Bohan, a partner at Sachnoff &
Weaver, a Chicago law firm retained late last year as independent counsel to the
TechTeam Board. Bohan is a Harvard Law School graduate and a former federal
prosecutor who heads his firm's Securities Litigation and Regulation Practice
Group. He has experience in conducting internal corporate investigations on
behalf of corporate boards.
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27335 West 11 Mile Road, Southfield, Michigan 48034 - Telephone (248) 357-2866
- Fax (248) 357-2570 - www.techteam.com
[TECHTEAM LOGO] NEWSRELEASE
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Costa Brava is TechTeam's largest shareholder. It announced in February that it
intended to nominate a slate of directors to replace the entire TechTeam Board
at the Company's annual shareholder meeting. Since that time, the sitting Board
has been working to reach an agreement with Costa Brava that would avert a
costly proxy contest and serve the best interests of all shareholders through
the nomination of a unity slate of directors.
TECHTEAM GLOBAL, INC. is a global provider of information technology and
business process outsourcing services. The Company's ability to integrate
computer services into a flexible, total single point of contact solution is a
key element of its success. Partnerships with some of the world's
"best-in-class" corporations provide TechTeam with unparalleled experience and
expertise in providing the following IT support solutions: help desk/call center
services, technical staffing, professional services/systems integration, and
training programs. For information about TechTeam Global, Inc. and its
outstanding services call 800-522-4451.
IMPORTANT INFORMATION
TechTeam Global, Inc. plans to file with the Securities and Exchange Commission
(the "SEC") and mail to its stockholders a Proxy Statement in connection with
its 2006 Annual Meeting, and advises its stockholders to read the Proxy
Statement relating to the 2006 Annual Meeting when it becomes available, because
it will contain important information. Stockholders may obtain a free copy of
the Proxy Statement and other documents (when available) that TechTeam files
with the SEC at the SEC's Web site at www.sec.gov. The Proxy Statement and these
other documents may also be obtained free from TechTeam by directing a request
to TechTeam Global Inc., Attn: Mr. Michael A. Sosin, 27335 West 11 Mile Road,
Southfield, Michigan 48034; telephone (248) 357-2866.
CERTAIN INFORMATION REGARDING PARTICIPANTS
TechTeam, its directors, and named executive officers may be deemed to be
participants in the solicitation of TechTeam's security holders in connection
with its 2006 Annual Meeting. Stockholders may obtain information regarding the
names, affiliations, and interests of such individuals in TechTeam's Annual
Report on Form 10-K for the year ended December 31, 2005 and its proxy statement
dated April 10, 2005, each of which is filed with the SEC.
To the extent holdings of TechTeam securities have changed since the amounts
printed in the proxy statement, dated April 10, 2005, such changes have been
reflected on Statements of Changes in Beneficial Ownership on Form 4 and Initial
Statements of Beneficial Ownership on Form 3 filed with the SEC.
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CONTACTS:
TECHTEAM GLOBAL, INC.
William C. Brown
President and
Chief Executive Officer
(248) 357-2866
wcbrown@techteam.com
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27335 West 11 Mile Road, Southfield, Michigan 48034 - Telephone (248) 357-2866
- Fax (248) 357-2570 - www.techteam.com