VSE Wins Task Order Under SEAPORT E Contract for Total Life Cycle Management Support of Aircrew Escape Systems

Company Awarded $25.4 Million, 5-Year Task Order

ALEXANDRIA, Va.-- VSE Corporation (Nasdaq:VSEC) reported today that its International Group's Fleet Maintenance Division has been awarded a five-year $25.4 million Task Order under its SEAPORT E Contract, to support the Joint Program Office for Cartridge Actuated Devices and Propellant Actuated Devices (CAD/PAD). The new Task Order provides an Award Term Clause which affords VSE the opportunity to extend the period of performance an additional five years based on exemplary performance. Services under the new Task Order will be performed principally at the Navy's Naval Surface Weapons Center (NSWC), Indian Head, MD, and the Air Force's Hill AFB, Ogden, UT.

In winning the award, VSE assembled a team of subject matter experts to support all phases of life-cycle management for explosive-actuated devices such as aircraft ejection seats. Life-cycle management responsibilities include the design, manufacturing engineering, prototyping, production, testing, qualification, in-service engineering, product improvement, demilitarization and disposal of CAD/PAD items. The VSE Team has extensive experience satisfying the requirements of the entire CAD/PAD user community, including the U.S. Navy, Air Force, Army, Marines, National Aeronautics and Space Administration, other Government agencies, foreign military sales customers, and commercial industry users.

"The life-cycle management program that VSE supports for CAD/PAD devices has resulted in significant improvement in reliability, safety, and cost savings-- principally measured by extended storage time on the shelf in magazines and extended service life of components installed in aircraft," stated Mike Hamerly, President of VSE's International Group. "It has reduced requirements for procurement of replacement stock and helped shorten the pipeline for items on-order and in-storage while supporting the level of readiness required, ensuring reliability of performance and safety for flight operations and personnel."

About VSE's International Group

International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies. GLOBAL Division provides assistance to the U.S. Navy in executing its Foreign Military Sales ("FMS") Program for ex-US Navy surface ships sold, leased or granted to foreign countries by providing program management, engineering, industrial support, technical support, logistics and crew training services for ship reactivations and transfers and follow-on support. Fleet Maintenance Division (FMD) provides global field engineering, logistics, maintenance and information technology services to the U.S. Navy, Army and Air Force, including fleet-wide ship, vehicle and aircraft support programs. FMD's expertise includes ship repair and modernization, ship systems installations, facility operations, war reserve materials management, aircraft sustainment and maintenance automation, and IT systems integration. Munitions and Ordnance Department of FMD provides munitions and ordnance R&D, operational requirements support, decontamination, demilitarization, and program management support. For more information about International Group's services please see the VSE Corporation website at www.vsecorp.com or contact Donald Babcock at (703) 329-4683.

About VSE

VSE marked its 50th year as a government contractor in January 2009. Established in 1959, VSE is a diversified professional services company providing engineering and consulting services, systems integration, infrastructure support, and information technology management and solutions, principally to agencies of the United States Government and other government prime contractors at locations across the United States and around the world. For additional information on VSE services and products, please see our web site at www.vsecorp.com or contact Randy Hollstein, Corporate Vice President of Sales and Marketing, at (703) 329-3206.

VSE encourages investors and others to review the detailed reporting and disclosures contained in VSE public filings with the Securities and Exchange Commission for further information and analysis of VSE's financial condition and results of operations. The public filings include additional discussion about the status of specific customer programs and contract awards, risks, revenue sources and funding, dependence on material customers, and management's discussion of short and long term business challenges and opportunities.

    Source: VSE Corporation

Released August 31, 2009