VSE Increases Quarterly Cash Dividend

Board Authorizes 14.3% Increase in Payout Rate

ALEXANDRIA, Va., June 11 /PRNewswire-FirstCall/ -- VSE Corporation (Nasdaq: VSEC) reported today that at a meeting of the company's Board of Directors held on June 6, 2007, the directors declared a quarterly dividend of $.04 per share (post-split basis), increasing the annual payout rate by 14.3%.

The $.04 per share dividend declared on June 6, 2007, will be paid on August 16, 2007, to stockholders of record as of August 2, 2007. The new payout rate of $0.04 per share is stated on a post-split basis. On May 1, 2007, VSE announced a 2-for-1 stock split for stockholders of record as of June 11, 2007, payable on June 28, 2007.

VSE has paid cash dividends each year since 1973 and has increased its cash dividend rate each year since 2004. The payment and amount of future dividends will depend on then existing conditions, including the company's earnings, financial condition, working capital requirements, and other factors.

Established in 1959, VSE is a diversified professional services company providing engineering, systems integration, scientific, and management solutions to customers in the defense, homeland security, law enforcement, energy, and environmental industries at locations and facilities across the United States and around the world. For the year December 31, 2006, VSE reported consolidated revenues of $363.7 million and earnings of $7.8 million ($3.21 per diluted share).

For more information on VSE services and products, please see the Company's web site at http://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.

News Contact: C. S. Weber, CAO, (703) 329-4770.

SOURCE VSE

Released June 11, 2007