VSE Corporation to Mentor Penobscot Indian Nation Enterprises (PINE) in Engineering Specializations for Federal Contracting Market

Awards subcontract to refurbish Army vehicles and equipment

ALEXANDRIA, Va.-- VSE Corporation (Nasdaq GS:VSEC) announced today that it will mentor a federal business entity owned by the Penobscot Indian Nation in Bangor, Maine.

In support of the mentoring arrangement, VSE has awarded a subcontract to Federal Program Integrators, LLC (FPI), a subsidiary of Penobscot Indian Nation Enterprises (PINE). FPI is currently seeking 8(a) certification from the U.S. Small Business Administration (SBA). FPI will assist in the refurbishment of military wheeled vehicles and equipment at VSE Federal Group's engineering facility in Ladysmith, Virginia. Both firms will apply to the SBA for inclusion in the SBA Mentor-Protege program.

At a recent news conference held to announce the mentoring arrangement, Chief of the Penobscot Nation Kirk Francis stated, "We are confident that our relationship with VSE will help facilitate FPI's successful entry into the federal services market. We are very excited to be partnering with a company as reputable as VSE."

"The leadership teams from VSE and PINE recognize the similarities of our respective cultures of service and commitment," said VSE CEO Mo Gauthier. "VSE is proud to share our federal services experience with the Penobscot Nation through this mentoring arrangement." Under the SBA Mentor-Protege program, the protege receives technical and financial assistance from the mentor. The mentor is then allowed to team with the protege in pursuit of sole source 8(a) contracts. Mentors can receive up to 49% of the work generated through the program.

Additionally, VSE is hosting Lloyd Bryant, a member of the Penobscot Nation and a mechanical engineering student at the University of Maine, who is conducting an internship this summer at VSE's Federal Group offices in Alexandria, Virginia. VSE's Federal Group provides engineering, technical, management and integrated logistics support services to U.S. military branches and other government agencies.

About PINE and FPI

Penobscot Indian Nation Enterprises (PINE) is a federally-chartered economic and business development corporation approved by the Penobscot Tribal Council.

Federal Program Integrators, LLC (FPI) is a manufacturer of wood products under various government and commercial contracts. Its most recent assignment has been providing refurbishment services to the Maine Military Authority at Loring AFB in Caribou, Maine.

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 Corporate Vice President of Sales and Marketing Randy Hollstein 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 30, 2009