Energetics Wins DoE Contract to Support Federal Energy Programs

ALEXANDRIA, Va.--

Energetics Incorporated, a wholly owned subsidiary of VSE Corporation (Nasdaq:VSEC) announced a five-year contract award for $85 million it will share with joint venture partner New West Technologies, LLC. The contract will provide technical, engineering, analytical and management support services for all Department of Energy (DoE) research and development programs in energy efficiency and renewable energy. These R&D programs address solar energy, wind and hydropower, geothermal energy, biomass energy, industrial technologies, FreedomCAR and vehicle technologies, hydrogen, fuel cells, and infrastructure technologies, building technologies, weatherization, water technologies, and Federal energy management. The two companies formed EnergyWorks Joint Venture in 2006 to bid together for this work.

"This contract has been long in the making," said Energetics' President Jim Reed. "We are delighted with the opportunity to significantly expand and improve on our long history of service to the nation's programs in energy efficiency and renewable energy."

VSE CEO/President/COO Mo Gauthier said, "Energetics has won contract awards totaling $80 million during the past 12 months, and the award of the EERE contract is a key element in maintaining and growing Energetics' reputation as a reliable DoE contractor. We appreciate the trust of our DoE clients in selecting us to participate in these high visibility energy management programs so important to our nation's future."

Energetics is a multi-disciplinary consulting company providing a broad range of technical and management support services to federal and state agencies, private companies, trade associations, and research institutions. Energetics currently consults in energy, infrastructure protection, and global health markets, providing an array of expertise from engineering evaluations and regulatory analysis to strategic and program planning. For more information on Energetics' services and products, please see the Company's website at www.energetics.com or contact Senior Vice President Jack Eisenhauer at (410) 953-6246.

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 July 7, 2008