Thomas Group Announces Restructuring Charge; Company Refocusing Business on Core Competencies

Business Wire, May 6, 1998

DALLAS--(BUSINESS WIRE)--May 6, 1998--Thomas Group, Inc. (NASDAQ:TGIS) today announced a realignment of its corporate structure to enhance and achieve greater shareholder value.

The company will refocus its efforts on its core business -- improving the competitiveness of its corporate clients. The actions will eliminate unprofitable operations and reduce costs which are expected to yield approximately $10 million in annualized savings going forward.

As a result of the restructuring, Thomas Group will take a pre-tax charge in the second quarter of 1998 of approximately $14 million. Components of the restructuring charge are: -0-

--   Personnel costs -- approximately $3 million
--   Unnecessary facilities write down -- approximately $6 million
--   Disposition of Thomas Group Information Technologies --
     approximately $4 million
--   Other provisions of approximately $1 million