Thomas Group Inc (TGISQ) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2010

Exhibit 99.1

FOR IMMEDIATE RELEASE

Thomas Group Announces Fourth Quarter and Year 2010 Results

Irving, Texas — March 9, 2011 — Thomas Group, Inc. (NasdaqCM: TGIS),

Loss from operations before income taxes increased to $1.3 million on $0.4 million in total revenue for the fourth quarter of 2010 compared to a loss from operations before income taxes of $1.2 million for the fourth quarter of 2009 on $1.5 million in total revenue.

For the year ended December 31, 2010, net loss was $7.2 million, or negative $3.37 per diluted share, on revenues of $3.5 million, compared to a net loss of $4.3 million, or negative $2.01 per diluted share, on revenues of $9.6 million for the year ended December 31, 2009.

Loss from operations before income taxes decreased to $5.6 million on revenues of $3.5 million for the year ended December 31, 2010 compared to a loss of $6.9 million on revenues of $9.6 million for the year ended December 31, 2009.

Fourth Quarter and Year 2010 Financial Performance

Revenue

Revenue for the fourth quarter of 2010 was $0.4 million, compared to $1.5 million in the fourth quarter of 2009. Consulting revenue from US government clients, represented by our Government practice, was $0.3 million, or 75% of revenue, in the fourth quarter of 2010, compared to $0.3 million, or 22% of revenue, in the fourth quarter of 2009. Consulting revenue from commercial clients, represented by our Commercial and European practices in the fourth quarter of 2010, was $0.05 million, or 11% of revenue compared to $1.0 million, or 66% of revenue, in the fourth quarter of 2009. Reimbursement of expenses was $0.05 million, or 14% of revenue in the fourth quarter of 2010, compared to $0.2 million, or 12% of revenue in the fourth quarter of 2009.

Revenue for the year ended December 31, 2010 was $3.5 million, compared to $9.6 million for the year ended December 31, 2009. Consulting revenue from US government clients was $1.6 million, or 45% of revenue, for the year ended December 31, 2010, compared to $2.2 million, or 23% of revenue, for the year ended December 31, 2009. Consulting revenue from commercial clients was $1.5 million, or 44% of revenue, for the year ended December 31, 2010, compared to $6.1 million, or 64% of revenue, for the year ended December 31, 2009. Reimbursement of expenses was $0.4 million, or 11% of revenue for the year ended December 31, 2010, compared to $1.3 million, or 13% of revenue, for the year ended December 31, 2009.

Gross Margins

Gross loss margin for the fourth quarter of 2010 was 5%, compared to gross profit margin of 23% for the fourth quarter of 2009. Gross profit margin for the year ended December 31, 2010 was 23%, compared to 36% for the year ended December 31, 2009. The drop in the quarterly and year-to-date gross margins is related to the significant slowdown of our government and commercial programs during 2010, and to lower pricing on some engagements in this period.

Selling, General & Administrative (SG&A)

SG&A costs for the fourth quarter of 2010 were $1.3 million, compared to $1.6 million in the fourth quarter of 2009. The $0.3 million decrease is related primarily to a $0.8 million decrease in payroll costs due to employee furloughs and the decline in the number of employees, a $0.1 million decrease in travel related