SPAR Group Penetrates Canadian Market Through Acquisition of Impulse Merchandising Services

SPAR Group Penetrates Canadian Market Through Acquisition of Impulse Merchandising Services

TARRYTOWN, N.Y., April 18, 2003 -- SPAR Group, Inc. (Nasdaq:SGRP) today announced it has entered into a binding letter of intent to acquire the business and certain assets of Impulse Merchandising Services, a division of kaBOOM! Entertainment Inc. Terms of the transaction were not disclosed.

Impulse, based in Toronto, provides a full spectrum of merchandising services to the mass market, grocery and select specialty retail sectors. The transaction is subject to further due diligence and customary closing conditions. The company said it expects to close by May 30, 2003.

"The addition of the Impulse Merchandising Services business to the SPAR family expands our presence in the Canadian market and opens new opportunities for SPAR," said Bob Brown, SPAR Group's chairman and chief executive officer. "Recent research we have conducted indicates that Canadian companies were not receiving the same value from their merchandising investments as were U.S. companies. We believe our systems will provide value-added services that will help increase productivity and profitability for Canadian retailers in virtually all classes of trade. Equally important, we are aligning with an organization that has an excellent reputation and an outstanding management team that will continue under the leadership of Jeff Deverett as president and Larry Deverett as executive vice president."

"Our entire organization is excited about joining forces with SPAR, which is the undisputed leader in our industry," said Jeff Deverett. "For our existing as well as potential clients, we look forward to offering significantly greater resources, complementary services and cutting-edge technology. With the power of the Internet, all of SPAR's systems will be fully operational in Canada within a week, and all of our clients will receive real-time information, which will assure enhanced field productivity and merchandising accountability."

SPAR Group, Inc. is a diversified marketing services company, providing a broad array of productivity enhancing products and services to help Fortune 1000 companies improve their sales, operating efficiency and profits. The company provides in-store merchandising, database and research services to general retail, mass market, drug and grocery chains throughout the United States and internationally.

CONTACT: SPAR Group, Inc.
         Charles Cimitile, 914/332-4100
             or
         PondelWilkinson MS&L
         Roger S. Pondel, 323/866-6060 (Investors)