Energetics Incorporated Awarded $21.7 Million Contract from Department of Energy Office of Electricity Delivery and Energy Reliability

ALEXANDRIA, Va.-- Energetics Incorporated, a wholly owned subsidiary of VSE Corporation (NASDAQ: VSEC), reported today the award of a three-year $21.7 million contract to support the U.S. Department of Energy (DOE), Office of Electricity Delivery and Energy Reliability (OE) in Washington, DC. The contract entails support for two of OE's main programs, the Electricity Research and Development program and the Smart Grid Investment Grant program. Activities to be performed include program and project management oversight support, strategic planning, and technical communications.

Although Energetics has provided consulting services to the OE Research and Development program for many years, the Smart Grid Investment Grant program work is a new activity. As part of the American Recovery and Reinvestment Act, DOE-OE's Smart Grid Investment Grant program recently awarded over $3.4 billion in federal funds to 100 smart grid projects across the country. The projects are designed to create jobs, foster new business formation, and enhance the U.S. electric grid with new smart grid technologies, tools, and techniques. Energetics' role is to support OE in the management and oversight of these 100 projects.

"Energetics has been collaborating with DOE on its electricity sector work for decades, and we are excited about the opportunity to continue and expand our efforts for this key client," said Energetics Incorporated President, Nancy Margolis.

About Energetics

Energetics Incorporated, a wholly owned subsidiary of VSE Corporation, is a technical and management consulting firm headquartered in Columbia, Maryland. Energetics specializes in a range of energy, environmental, homeland security, and global health issues. Its staff of engineers, scientists, economists, policy and business analysts, environmental specialists and marketing professionals assists public and private-sector clients with the management of research, development and demonstration programs; strategic and tactical planning; engineering, economic, and environmental analysis; the development of public/private partnerships; and outreach and communications. For more information on services and products provided by Energetics, please see the Company's web site at www.energetics.com or contact Brad Spear, Director of Business Development, at (202) 479-2748.

About VSE

VSE is a diversified Federal Services company of choice with over 50 years of experience in solving issues of global significance with integrity, agility, and value. VSE is dedicated to making our clients successful by delivering talented people and innovative solutions for logistics, engineering, IT services, construction management and consulting. For additional information on all VSE services and products, please see the Company's web site at www.vsecorp.com or contact Randy Hollstein, VSE Corporate Vice President of Sales and Marketing, at (703) 329-3206.

    Source: VSE Corporation

Released September 9, 2010