VSE Unit Awarded Department of Energy Support Contract

Energetics Wins 5-Year, $6.1 Million Contract with Department of Energy, Office of Nuclear Energy

ALEXANDRIA, Va.--

Energetics Incorporated, a wholly owned subsidiary of VSE Corporation (Nasdaq:VSEC), announced today the recent award a new five-year, U.S. Department of Energy, Office of Nuclear Energy prime contract to provide professional engineering services to the Office of Nuclear Power Deployment (NE-3). The new contract, which expands the scope of Energetics' support to NE, has a two-year base and three one-year option periods with a potential total value of $6.1 million. NE-3 consists of four program offices and the university research program. Program offices include Light Water Reactor Development (NE-31), Laboratory Facilities Management (NE-32), Gas Reactor Deployment (NE-33), and Radioisotope Power Systems (NE-34).

    --  The Office of Light Water Reactor Deployment (NE-31) mission
        is to conduct research and technology development,
        demonstration, and deployment activities involving current and
        future light water nuclear reactor technology.

    --  The Office of Laboratory Facilities Management (NE-32) mission
        is to maintain nuclear and radiological facilities in a safe,
        secure, environmentally compliant and cost-effective manner to
        support national priorities. These facilities are located at
        the Idaho National Laboratory (INL), Oak Ridge National
        Laboratory (ORNL), Los Alamos National Laboratory (LANL), and
        at Brookhaven National Laboratory (BNL).

    --  The Office of Gas Reactor Deployment (NE-33) mission is to
        perform research and development leading to commercialization
        of gas-cooled high temperature reactor technology in
        conjunction with the Next Generation Nuclear Plant (NGNP)
        program; support the Nuclear Hydrogen Initiative (NHI) - aimed
        at demonstrating the economical use of nuclear energy to
        generate hydrogen gas; and perform research and development in
        conjunction with the Generation IV International Forum.

    --  The Office of Radioisotope Power Systems (NE-34) mission is to
        develop, design, produce, test, provide acceptance, and at
        completion deliver radioisotope power systems (RPS) for use in
        space exploration and national security missions; and manage
        the development of advanced technologies that may be used in
        future systems.

Energetics' current NE prime contract specifically supports the University Programs office and that work scope will continue under this new vehicle.

"Congratulations are in order to our Nuclear Energy managers and support staff and to contract and business administration staff who devoted long hours to presenting our capabilities in response to the Office of Nuclear Energy solicitation," said Energetics' President Jim Reed. "We appreciate the opportunity to continue our work and to expand our support to the Office of Nuclear Energy."

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.

VSE provides diversified services to the engineering, energy and environment, defense, and homeland security markets from more than 20 locations across the United States and around the world. For more information on VSE services and products, please see VSE's web site at www.vsecorp.com or contact Len Goldstein, Director of Business and New Product Development, at (703) 317-5202.

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 October 12, 2007