VSE Awarded Subcontract to Provide Driver's Vision Enhancer Vehicle Integration Kits, Engineering and Installation Support for Military Vehicles

Award represents potential VSE revenues of up to approximately $190 Million over five years

ALEXANDRIA, Va.-- VSE Corporation (Nasdaq GS:VSEC) announced today that the Systems Engineering Division of its Federal Group was awarded a subcontract to provide Vehicle Integration Kits (VIKs), spare VIK components, and engineering and installation support on a wide range of tactical wheeled vehicles and combat vehicles for the U.S. Army and U.S. Marine Corps through a multiple award indefinite delivery/indefinite quantity contract under the Driver's Vision Enhancer-Family of Systems (DVE-FOS) program. The subcontract, awarded by BAE Systems, has an anticipated ceiling value to VSE of approximately $190 million over a five-year period.

The DVE-FOS system provides drivers of tactical and combat vehicles greater situational awareness and easier maneuvering capability during conditions of darkness, inclement weather, and adverse battlefield conditions such as dust and smoke.

VSE will be the sole provider of the VIKs and spare VIK components under the DVE-FOS contract and will provide all required installation, engineering and logistics support related to the VIKs under the direction of the Forward Looking Infrared Radar Division at Ft. Belvoir, Virginia.

"VSE is proud to support this vital Department of Defense program that allows soldiers to effectively navigate tactical wheeled and combat vehicles on the battlefield under conditions of severely obstructed visibility," said VSE CEO Maurice "Mo" Gauthier. "The DVE-FOS program is just one of many examples of our long-standing commitment to enhancing the Warfighter's tactical capabilities."

About VSE's Federal Group

Federal Group provides engineering, advanced technology, prototyping, technical, management and integrated logistics support services to U.S. military branches and other government agencies. Federal Group also specializes in providing full life-cycle engineering, logistics, maintenance, and refurbishment services to extend and enhance the life of existing equipment. Support also includes providing worldwide field maintenance and logistics support services for a wide variety of military vehicles and equipment in austere environments. For more information about Federal Group's services please see the VSE Corporation website at www.vsecorp.com or contact Keith Prewitt at (703) 329-3251.

About VSE

VSE marked its 50^th year as a government contractor in 2009. VSE is a diversified Federal Services company of choice for solving issues of global significance with integrity, agility, and value. VSE is dedicated to making our clients successful by delivering talented people and innovative solutions for consulting and program management, logistics, equipment and vehicle/vessel refurbishment, engineering, information technology, energy consulting, and construction program management. For additional information on VSE services and products, please see the company's web site at www.vsecorp.com or contact Randy Hollstein, VSE Corporate Vice President of Sales and Marketing, at (703) 329-3206.

Safe Harbor

This news release contains statements which, to the extent they are not recitations of historical fact, constitute "forward looking statements" under federal securities laws. All such statements are intended to be subject to the safe harbor protection provided by applicable securities laws. For discussions identifying some important factors that could cause actual VSE results to differ materially from those anticipated in the forward looking statements in this news release, see VSE's public filings with the Securities and Exchange Commission.

    Source: VSE Corporation

Released October 5, 2009