VSE Subsidiary to Receive Technical Services and Program Support Subcontract for U.S. Department of Energy Worth Up to $11.4 Million

Energetics Awarded Second Largest Contract in Its History by Office of Electricity Delivery and Energy Reliability

ALEXANDRIA, Va.-- VSE Corporation (Nasdaq GS:VSEC) reported today that its wholly owned subsidiary, Energetics Incorporated, headquartered in Columbia, Maryland, expects to receive up to $11.4 million to provide services under a three-year subcontract with the U.S. Department of Energy (DoE).

Energetics will support the Office of Electricity Delivery and Energy Reliability with research and development programs and activities in electricity policy, siting, and analysis as a subcontractor to Systematic Management Services Inc (SMS), which holds a "blanket purchase" agreement with DoE.

Energetics President Jim Reed said, "This is an exciting opportunity for Energetics to expand our services in a number of important areas, including electric grid modernization; smart grid technologies, tools, and techniques; cyber security; grid-integration of renewable and distributed energy systems; and advanced electric transmission and distribution technologies like high temperature superconducting materials."

VSE CEO/President/COO Mo Gauthier said, "Energetics is made up of a very talented group of energy experts and we are very proud of its continued record of innovation and accomplishments. 2008 was the most successful year in its history, and we believe that the next few years will be a period of significant opportunity for DoE contractors."

The Office of Electricity Delivery and Energy Reliability has received about $4.5 billion in funding from the American Reinvestment and Recovery Act for grants and demonstration projects in "smart grid" and other grid modernization activities. Services Energetics expects to provide under the subcontract include, among others, technical and management support in directing ARRA funds toward enhancing the capacity, flexibility, and functionality of America's electric transmission and distribution system.

About Energetics

Energetics provides technical and management support in areas of nuclear energy, technology research, development, demonstration, and consulting services in the field of energy and environmental management. Energetics' expertise lies in state-of-the-art and advanced technology assessment, technical and economic feasibility analysis, technology transfer, R&D program planning, engineering studies, market assessment, strategic resource management, regulatory analysis, environmental compliance and risk management. Customers include the U.S. Department of Energy, including the Office of Nuclear Energy, Science and Technology; the U.S. Department of Homeland Security; and other government agencies and commercial clients.

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 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 June 15, 2009