SPAR Group Reports a Significant Improvement in Financial Results for 2008 Second...

SPAR Group Reports a Significant Improvement in Financial Results for 2008
Second Quarter, Six Months

TARRYTOWN, N.Y., July 31, 2008 (PRIME NEWSWIRE) -- SPAR Group, Inc.
(Nasdaq:SGRP) today reported a significant improvement in financial results for
the second quarter and six months ended June 30, 2008.

Net revenues for the 2008 second quarter rose 51% to $18.9 million from $12.5
million a year ago. The company's operating income for the 2008 second quarter
was $460,000, compared with an operating loss of $1.6 million for the second
quarter of 2007. SPAR Group achieved net income of $3,000 for the 2008 three
month period ended June 30, 2008, equal to breakeven per share, which included
$458,000 in non-recurring litigation costs and a $170,000 tax benefit. The
company recorded a net loss of $1.7 million, or $0.09 per share, for the
corresponding period last year. Selling, general and administrative expenses for
the 2008 second quarter decreased 12% to $4.5 million from $5.1 million a year
ago.

SPAR Group reported that international revenue for the 2008 second quarter rose
52% to $10.0 million from $6.6 million last year. The division posted second
quarter net income of $188,000, compared with a net loss of $390,000 for the
2007 second quarter.

Revenue in the U.S. for the 2008 second quarter increased 51% to $8.9 million
from $5.9 million a year ago. SPAR Group's U.S. operations reduced its net loss
to $185,000 for the 2008 second quarter from a net loss of $1.3 million for the
2007 second quarter.

"Our domestic and international operations both experienced solid growth for the
second quarter," said Gary Raymond, SPAR Group's president and chief executive
officer. "The positive results reflect the benefits of more aggressive sales
programs and closing new business opportunities, including heightened
recognition of the role that SPAR Group and its services play in helping to grow
clients' businesses, particularly during the current challenging economic
period.

"Tight internal cost controls, including lower SG&A expenses, along with our
revenue growth, also contributed to the profitable performance for the period.
While no company is immune to the effects of today's challenging economic
environment, we remain cautiously optimistic that the programs we have put into
place are working. Our entire team will remain diligent about controlling costs
and continuing to actively grow our revenues."

Robert G. Brown, chairman of the board, added, "The favorable performance
reflects the underlying strengths of our entire organization, from the results
we produce for our clients, to our advanced technology and our dedicated team. I
also want to recognize the leadership that our chief executive officer has
brought to SPAR Group since he joined the company just over a year ago in what
was a smooth, seamless transition. While much work remains to be done, I am
confident we are on the right track."

For the 2008 six-month period, revenues advanced 30% to $36.4 million from $27.9
million last year. SPAR Group's operating income was $564,000 for the six-month
period compared with an operating loss of $1.9 million for the same period in
2007. The company's net loss for the first half of 2008 decreased to $247,000,
equal to $0.01 per share, from a net loss of $2.2 million, or $0.12 per share,
for the 2007 comparable period. Selling, general and administrative expenses for
the 2008 year-to-date period decreased to $9.2 million from $10.1 million a year
ago.

International revenue for the six months ended June 30, 2008, rose 48% to $20.0
million from $13.6 million last year. Net income for the international
operations was $257,000 for the first half of 2008, compared with a net loss of
$508,000 in the first half of 2007.

Revenue in the U.S. for the first half of 2008 increased 14% to $16.4 million
from $14.3 million in the same period a year ago. The U.S. operation reduced its
loss to $504,000 for the 2008 year-to-date period, versus a net loss of $1.7
million for the first six months of 2007.

About SPAR Group

SPAR Group, Inc. is a diversified international marketing services company,
providing a broad array of services to help companies improve their sales,
operating efficiency and profits at retail worldwide. The company provides
in-store merchandising, in-store event staffing, RFID and other technology, as
well as research, to manufacturers and retailers covering all product
classifications and all classes of trade, including mass market, drug store,
convenience store and grocery chains. The company operates throughout the United
States and internationally in Japan, Canada, Turkey, South Africa, India,
Romania, China, Lithuania, Latvia, Estonia, Australia and New Zealand. For more
information, visit SPAR Group's Web site, www.sparinc.com.

Certain statements in this news release are forward-looking, including, but not
limited to, further benefits to be derived from the continued efforts to grow
revenues and control costs. The company's actual results, performance and trends
could differ materially from those indicated or implied by such statements as a
result of various factors, including (without limitation), the continued
strengthening of SPAR Group's selling and marketing functions, continued
customer satisfaction and contract renewal, new product development, continued
availability of capable dedicated personnel, continued cost management, the
success of its international efforts, success and availability of acquisitions,
availability of financing and other factors, as well as by factors applicable to
most companies such as general economic, competitive and other business and
civil conditions. Information regarding certain of these and other factors that
could affect future results, performance or trends are discussed in SPAR Group's
annual report on Form 10-K , quarterly reports on Form 10-Q, and other filings
made with the Securities and Exchange Commission from time to time.

SPAR Group, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)

Three Months Ended Six Months Ended
-------------------- --------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------------------- --------------------

Net revenues $ 18,910 $ 12,506 $ 36,364 $ 27,919
Cost of revenues 13,719 8,757 26,203 19,255
-------------------- --------------------
Gross profit 5,191 3,749 10,161 8,664

Selling, general and
administrative expenses 4,510 5,137 9,168 10,144
Depreciation and
amortization 221 194 429 391
-------------------- --------------------
Operating income (loss) 460 (1,582) 564 (1,871)

Interest expense 81 93 162 181
Other expense 521 18 564 38
-------------------- --------------------
Loss before provision for
income taxes (benefit)
and minority interest (142) (1,693) (162) (2,090)
Provision for income taxes
(benefit) (185) 74 (21) 141
-------------------- --------------------
Income (loss) before
minority interest 43 (1,767) (141) (2,231)

Minority interest 40 (28) 106 16
-------------------- --------------------
Net income (loss) $ 3 $ (1,739) $ (247) $ (2,247)
==================== ====================

Basic/diluted net loss per
common share:

Net loss - basic/diluted $ -- $ (0.09) $ (0.01) $ (0.12)
==================== ====================

Weighted average common
shares - basic/diluted 19,137 18,934 19,150 18,934
==================== ====================

Note: Certain reclassifications have been made to the prior period
financials to conform to the current period presentation.

SPAR Group, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except share and per share data)

June 30, December 31,
2008 2007
--------------------
Assets
Current assets:
Cash and cash equivalents $ 2,245 $ 1,246
Accounts receivable, net 13,521 13,748
Prepaid expenses and other current assets 929 975
--------------------
Total current assets 16,695 15,969

Property and equipment, net 1,532 1,528
Goodwill 798 798
Other assets 1,724 1,648
--------------------
Total assets $ 20,749 $ 19,943
====================

Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 4,439 $ 3,631
Accrued expenses and other current
liabilities 4,597 3,981
Accrued expenses due to affiliates 2,343 2,107
Customer deposits 651 580
Lines of credit 5,129 6,119
--------------------
Total current liabilities 17,159 16,418

Other long-term liabilities 231 299
Minority Interest 832 676
--------------------
Total liabilities 18,222 17,393

Stockholders' equity:
Preferred stock, $.01 par value:
Authorized shares-3,000,000
Issued and outstanding shares-
89,286 - June 30, 2008 1 --
Common stock, $.01 par value:
Authorized shares- 47,000,000
Issued and outstanding shares-
19,136,865 - June 30, 2008
19,089,177 - December 31, 2007 191 191
Treasury stock (1) (1)
Additional paid-in capital 12,231 11,982
Accumulated other comprehensive loss (69) (43)
Accumulated deficit (9,826) (9,579)
--------------------
Total stockholders' equity 2,527 2,550
--------------------
Total liabilities and stockholders' equity $ 20,749 $ 19,943
====================
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CONTACT: SPAR Group, Inc.
James R. Segreto, Chief Financial Officer
(914) 332-4100

PondelWilkinson Inc.
Roger S. Pondel
Judy Lin Sfetcu
(310) 279-5980