GP INVESTMENTS LAUNCHES CONSENT SOLICITATION TO AMEND THE INDENTURE GOVERNING ITS 10% PERPETUAL NOTES

10% Perpetual Notes (Common Code No. 028234023, ISIN No. XS0282340230)

HAMILTON, BERMUDA, October 13, 2009 - GP Investments, Ltd. (“GP Investments” or the “Company”) announced that it is soliciting consents (“Consents”) from holders of not less than a majority of its outstanding $190,000,000 aggregate principal amount of 10% Perpetual Notes (the “Notes”) to amend the terms of the indenture dated as of January 23, 2007 (as amended by a first supplemental indenture dated October 2, 2007, the “Indenture”) governing the Notes, pursuant to a consent solicitation statement dated as of October 13, 2009 (the “Consent Solicitation Statement”).

As more fully described in the section “The Proposed Amendments” in the Consent Solicitation Statement, GP Investments is proposing to amend the Indenture to (i) provide for optional redemption of the Notes by GP Investments in part, on the terms currently contained in the Indenture with respect to optional redemption of the Notes in whole and (ii) eliminate the Debt Service Reserve Account. GP Investments believes that the amendment to the optional redemption provisions enhances flexibility in making redemptions of the Notes and will permit it to implement changes in the composition of its that it may deem necessary or appropriate from time to time. GP Investments expects to have sufficient funds to make payments of interest on the Notes when they fall due and that eliminating the Debt Service Reserve Account will provide it with greater liquidity to be used for purposes of operating its business and the businesses of the GP Group.

GP Investments will pay a consent fee of $10.00 per $1,000 principal amount of Notes (the “Consent Fee”) to holders of the Notes that have validly delivered (and not validly revoked) consents on or prior to the Expiration Date (as defined below), subject to satisfaction of the conditions set forth in the Consent Solicitation Statement. GP Investments will cause the Consent Fee to be paid to consenting Holders on the date that is the third business day after the Expiration Date, or as soon thereafter as practicable. Holders who do not properly deliver their Consents on or prior to the Expiration Date will not be entitled to receive the Consent Fee.

The consent solicitation will expire at 5:00 p.m. CET, 12:00 p.m. (noon) time, on October 26, 2009, unless earlier terminated or extended by GP Investments (the “Expiration Date”). Pursuant to the Indenture, consents may be revoked in the manner specified in the Consent Solicitation Statement under “Revocation of Consents.”

Holders of the Notes should carefully read the Consent Solicitation Statement for a complete description of all terms and conditions before making any decision with respect to the consent solicitation. None of GP Investments, the Trustee (HSBC Bank USA, National Association), the Solicitation Agent ( Securities Inc.) or the Tabulation and Information Agent (Lucid Issuer Services Limited) make any recommendation as to whether or not any holder should deliver Consents to the proposed amendments to the Indenture as described in the section “The Proposed Amendments” in the Consent Solicitation Statement.

Additional information concerning the terms and conditions of the consent solicitation may be obtained from the Solicitation Agent, Deutsche Bank Securities Inc., by calling (866) 627-0391 or (212) 250-2955. Copies of the Consent Solicitation Statement and additional information concerning the procedure for delivering consents may be obtained from the Tabulation and Information Agent, Lucid Issuer Services Limited, by sending an email to [email protected] or by calling +44 (0) 207 704 0880.

Founded in 1993, GP Investments is a leading firm focused on the Latin American market. The Company currently manages over $4 billion of capital in its private equity business, including funds from co- investors, and approximately $1.5 billion in its traditional asset management business. GP Investments has raised approximately $5 billion of capital from investors across five generic private equity funds and one technology fund.

This press release contains forward-looking statements. These statements are subject to certain risks and uncertainties, including market conditions and other factors beyond the control of GP Investments.