GSE Systems Awarded Two Contracts Worth Approximately $4 Million for Nuclear Power Simulation Work in China

GSE Systems, Inc. (“GSE” or “the Company”) (Nasdaq:GVP), a leader in real-time high-fidelity simulation systems, training/consulting and technology-enabled engineering solutions to the power and process industries, today announced receipt of two contracts from important Chinese customers. The two contracts will commence during Q2 2018, and together have a total value that exceeds $4 million. The projects will continue over the next two years.

Under one of the contracts, GSE will provide simulation technology and engineering services for delivery of a full scope high-fidelity nuclear power plant simulator. GSE has participated in the development and delivery of two other simulators for this customer. GSE and its partner will develop the simulator using GSE’s high-fidelity simulation platform and JADE™ software modeling suite, THEATRe, and REMARK advanced models. The simulator will be enhanced with severe accident simulation capability supported by GSE’s PSA-HD™ modeling software. The JADE suite has been used to effectively meet the highest standard of simulation in the nuclear industry and used for simulators for all major nuclear plant designs, including: Pressurized and Boiling Water Reactors, Advanced Gas Reactors, Canadian CANDU Reactors, Russian VVER Reactors, High Temperature Gas Reactors and Small Modular Reactors.

Under the other contract, GSE will provide its PSA-HD real-time severe accident modeling technology for the customer to apply to their Chinese designed CAP 1400 nuclear plant simulator at a nuclear power plant site. GSE’s PSA-HD tool combines the Electric Power Research Institute’s (EPRI’s) modular accident analysis code (MAAP*) with GSE’s real-time High Definition Executive to enable training and analysis of beyond design basis events, a focus for the industry since the March 2011 accident at Japan’s Fukushima Daiichi plant. The technology will improve both operator and support staff coordination, procedure development and response training in the unlikely event of an accident. PSA-HD, which applies to full scope simulators, and GSE’s desktop version Design EP®, have been implemented at more than 25 nuclear power and research organizations around the world for a variety of reactor types.