“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.

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(Tables follow)

SPAR Group, Inc.

Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

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