VSE Leads Key Industry Team in Naval Ship Transfer and Repair (N*STAR)

Global Maritime Partnership Team Expands Capabilities

ALEXANDRIA, Va.-- VSE Corporation's (Nasdaq GS: VSEC) GLOBAL Division announces additional industry leaders who have joined its Naval Ship Transfer and Repair (N*STAR) team. New team members include HEBCO Incorporated, Valkyrie Enterprises, LLC; Atlantic Ordnance International; Delex Systems, Inc; and DRS Technologies, Inc, a wholly owned subsidiary of Finmeccanica S.p.A.

The new teammates join some of the top industry leaders, such as Raytheon, Science Applications International Corporation (SAIC), Thales Naval, Inc., General Dynamics, Lockheed Martin, Computer Sciences Corporation (CSC), BAE SYSTEMS and American Systems Corporation.

The team is structured to provide full life cycle support not only to ex-US Navy ships and systems transferred to foreign clients, but also to the foreign clients' indigenously acquired ships and systems. In addition to extensive industrial capability in Hull, Mechanical and Electrical systems, the N*STAR Team brings to its clients the industry leaders in Complex Systems Integration, Combat Systems repair and modernization, and overseas logistics support.

International Group President Mike Hamerly said, "Our goal is to build a team that has the capacity, capability and flexibility to satisfy the full range of FMS requirements over the period of the new contract. This team has those attributes as well as the established domestic and foreign networks and relationships necessary to ensure the success of projects with any FMS customer."

VSE Corporation President/CEO/COO Maurice "Mo" Gauthier commented, "Over the 14 years VSE has been the prime contractor for this effort, we have perfected the processes necessary to ensure optimal customer support whether it is rebuilding a transferred ship, conducting complex depot-level availabilities in overseas locations or installing a coastal surveillance system in Eastern Europe."

VSE has been the lead firm performing ship transfer work for the Naval Sea Systems Command under the Foreign Military Sales ("FMS") Program since this function was initially outsourced in 1995. During that time, VSE has managed the successful transfer of 42 ships. The transfer services have included a large variety of ships/systems, from guided missile destroyers to floating dry docks. VSE is currently supporting the transfer of ex-USNS Andrew J. Higgins to Chile at the Atlantic Marine shipyard in Mobile, Alabama.

VSE International Group

International Group provides global engineering, industrial and logistics services for foreign military sales. GLOBAL Division provides assistance to the U.S. Navy in executing its Foreign Military Sales Program for surface ships sold, leased or granted to foreign countries by providing program management, engineering, technical support, and logistics services for ship reactivations, transfers, and follow-on 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 is Federal Services Company of choice for solving issues of global significance with integrity, agility and value. VSE marked its 50th year as a government contractor in January 2009 and is dedicated to making our clients successful by delivering talented people and innovative solutions for program management, logistics, engineering, IT services, construction program management and consulting. 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 January 11, 2010