GSI Group, Inc. Equity Committee Announces Support for Modified Reorganization Plan

BILLERICA, Mass., May 21 /PRNewswire/ --The Official Committee of Equity Security Holders of GSI Group, Inc. (Pink Sheets: GSIGQ) announced today that it unanimously supports GSI's Fourth Modified Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code filed on May 14, 2010, in the United States Bankruptcy Court for the District of Delaware.  The Equity Committee also unanimously recommends that any GSI shareholders that voted against the original plan of reorganization seek to change their vote to accept the modified plan.

"The current plan represents a substantial improvement to the original plan, which would have left shareholders with only 18% of the equity of GSI," said Stephen W. Bershad, Chairman of the Equity Committee.  "Under the current plan, which represents the culmination of the Equity Committee's negotiations with GSI and certain holders of GSI's senior notes, if GSI shareholders exercise in full their right to buy additional shares of GSI, they may continue to own over 87% of the equity of GSI following emergence from bankruptcy.  The modified plan will also significantly reduce GSI's funded debt, positioning GSI to grow its businesses and capitalize upon future opportunities."

SOURCE The Official Committee of Equity Security Holders of GSI Group, Inc.

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