I have done a fair bit of reading on gynecomastia forums as well as here and Cheryls (no expert here, just widely read) and the consensus from men who want to get rid of gynecomastia is that exercise does NOT reduce it if it isn't pseudo-gynecomastia, ie. from being overweight. In fact, the consensus is that exercises focusing on developing the chest make glandular gynecomastia look worse. The pectoral muscles underlie the breast itself, and if you develop those muscles (hypertrophy is the fancy scientific term) it tends to push the breast out, making it look more prominent. Hence, to them it looks worse. For you that would be desirable.
You don't have to worry about "locally" producing testosterone in the pectorals that will adversely affect your breast growth. The testosterone is NOT produced in the muscle itself (it's produced in the gonads and adrenal glands), and is distributed throughout the body by the circulatory system. If you are really concerned about testosterone production, try SP, but frankly, I haven't taken SP since fall of 2010, and I still got growth (see below.)
Again, I would keep exercising as you have been, including chest exercises. You know the old saying (while squeezing your hands together and flexing your pects): "We must, we must, we must increase our bust!"
Again, give it time. Look back on posts by chrissiegirl, sfem, myself and others. It can take 3 to 4 months to get tender buds under the nipples, and several more months to get appreciable growth. I am just about at the point where I can't really pull off going topless anymore and I started herbs in April 2010 and PM in July 2010. I definitely have to wear some sort of bra, even under mens collared dress shirts now. I have to be careful of the bra, because some lift the girls up and make them more prominent, while others just round out the conical shape and prominent nipples I now sport, helping to hide them. It may seem obvious, but bears repeating: your mileage may vary. But definitely give it time.