VSE Awarded Contract to Support Tanker Ballistic Protection System Program

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Army Definitizes $17.2 Million Contract to Support U. S. Army and U. S. Marine Corps Vehicles in Iraq

ALEXANDRIA, Va.--

VSE Corporation (NASDAQ:VSEC) reported today that its Systems Engineering Division was awarded a $17,189,078 firm fixed-price modification under the Tanker Ballistic Protection System (TBPS) Program for the application of a Fuel Tank Self-Sealing System and necessary Add-on Armor Panel Kits for the U.S. Army's M978 HEMTT and the U.S. Marine Corps' MK970 Fuel Dispensing Tankers.

Work on the new contract will be performed primarily in Iraq and is expected to be completed in the summer of 2008. The contracting activity is the U.S. Army Sustainment Command, Rock Island, Illinois. The modification definitizes an initial $14.0 million letter contract issued in July 2007.

The TBPS program began in late 2004. Under the program, VSE has supported a number of military combat vehicles and fuel tankers including the M967, M969, M978, M1062, and MK 970. Work has been performed in Virginia, Kuwait, and Iraq.

VSE's Systems Engineering Division is under the direction of Tom Dacus, President and Director of VSE's Federal Group. "With this award, VSE is increasing its support of this important and successful program to protect our military forces. The application of this product is a high priority at VSE, and we are committed to meeting all requirements."

Established in 1959, VSE provides diversified services to the engineering, energy and environment, defense, and homeland security markets from locations across the United States and around the world. For more information on VSE services and products, please see the Company's web site at www.vsecorp.com or contact Len Goldstein, Director of Business and New Product Development at (703) 317-5202.

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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 December 18, 2007