VSE Opens New Center of Excellence

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Improved 45-acre Ladysmith facility includes 58,000 sq. ft. of shop and office space and 3 acres of secure storage area

ALEXANDRIA, Va.--

VSE Corporation (Nasdaq:VSEC) recently held a ribbon cutting ceremony for a new $6.2 million state-of-the-art military vehicle and equipment refurbishment center in Ladysmith, Virginia.(1)

The new Center of Excellence facility provides complete lifecycle engineering, logistics, maintenance, remanufacturing and refurbishment services to extend and enhance the life of existing military equipment. The 180-person VSE team specializes in full-service wash/dry, rust/paint sand-blasting removal, pre-treatment, painting, and corrosion and chemical agent resistant sealant application. The finished product is also protected from visual and near infrared means of detection, as well as inhibiting absorption of chemical agents into the paint film, while at the same time allowing the decontamination process to be simplified. The new Ladysmith facility operates three eight-hour shifts daily for the best turnaround time available to optimize the capabilities for all military units.

VSE CEO, President and COO Maurice "Mo" Gauthier opened the ribbon cutting ceremony by commenting on the new Center of Excellence being the direct result of VSE's commitment to national defense, to Caroline County and the Commonwealth of Virginia, and to the exemplary men and women of our armed forces who operate daily in harm's way. "With this new facility, VSE is uniquely positioned to provide the best possible service at the best possible value, while allowing the military to concentrate on vital mission requirements, training, and the safety and welfare of our troops. Our new flagship facility is a significant milestone in VSE's continued growth through improving and extending service capabilities to our customers."

The keynote speaker for the event was Chief of the U.S. Army Reserve Commanding General Lieutenant General Jack Stultz. "This facility epitomizes the transformation, growth and progress of the (Army) Reserve. VSE has created an environment that supports our warrior-citizens, as well as their own employees who are currently serving overseas in the Reserves, through the refurbishing of military equipment. VSE does so much for the Reserve, and I look forward to what the future holds."

Commonwealth of Virginia State Senator Ryan McDougle remarked, "Companies like VSE Corporation make sure our military is properly prepared. This is the type of business we want in Virginia, a business that uses creativity and ingenuity by affording efficiency in the most cost-effective way which always leads to improving the economy."

The Vice Chairman of the Caroline County Board of Supervisors, the Honorable Jeffery Sili, remarked, "Ladysmith is currently competing as a finalist for America's top city honors, and Caroline County is now the right place to be for major corporations. We value VSE's guidance, direction and investment to increase business and economic development in Caroline county."

"I want to thank all the VSE employees who provide our customers with quality products and services," said VSE Engineering and Logistics Division Manager Senior Vice President Donnelle Moten. "A company is no better than the people it hires, and our personnel are certainly our greatest asset."

The ribbon cutting event also included a cake cutting ceremony recognizing the 100th anniversary of the U.S. Army Reserve and VSE's 50th year of business.

Special guests invited to the ribbon cutting ceremony included Mr. (and Mrs.) John B. Toomey, VSE's founder and its first Chairman of the Board, President and CEO. Also in attendance were local and state elected officials, Chamber of Commerce members, and military officials, as well as several members of the VSE Board of Directors. VSE has similar operations in other locations in Virginia as well as Mississippi, Texas, California, and Missouri.

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 the year December 31, 2007, VSE reported consolidated revenues of $653.2 million and earnings of $14.1 million ($2.82 per share diluted).

For more information on VSE services and products, please see the Company's web site at www.vsecorp.com or contact Len Goldstein, Director of Business and New Product Development at (703) 317-5202.

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.

(1) Ladysmith is off Interstate 95, about midway between Fredericksburg and Richmond.

Source: VSE Corporation

Released June 10, 2008