VSE Increases Support Services Under U.S. Army Rapid Response (R2) Support Contract

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September 2007 Orders Exceed $180 Million

ALEXANDRIA, Va.--

VSE Corporation (Nasdaq:VSEC) reported that its Rapid Response (R2) Support Contract task order awards for last month increased by approximately by $180.4 million. The new task orders and expanded level of effort requirements require program management, systems engineering, integrated logistics, and technical services in support of various U.S. Army and U.S. Navy activities at multiple locations.

VSE's Communications and Engineering Division was awarded a task order of $19.7 million in support of the U.S. Army Tank Automotive Command (TACOM) Watercraft Operational Support C4I/CEN on the LCU-2000. This work, including operational installation and testing and programmatic support, is being performed by a VSE R2 Support Contract subcontractor, L-3 Communications, Klein Associates.

VSE's Communications and Engineering Division also reported that its current task orders to provide maintenance and logistics services in support of U.S. Army equipment in Iraq and Afghanistan have been expanded by nearly $140 million if all optional tasks are exercised. VSE will be supporting its R2 subcontractor ManTech International Corporation (Nasdaq:MANT) in these efforts. The increased level-of-effort includes deployed sustainment management, deployed logistics and repairs management, unique system training and curriculum support, resource management, and acquisition and administrative support at multiple locations in Southwest Asia. VSE will provide sustainment services including maintenance and repair of Route Clearance Equipment (RCE) vehicles as well as certain program management services. The level-of-effort expansion for VSE's technical support services includes Army program management, integrated logistics, repairing, and sustaining route and area clearance countermine/counter Improvised Explosive Device (IED) system support. VSE will also provide sustainment services including maintenance and repair of Special Operations Command (SOCOM) Mine Resistant Armored Protected (MRAP) vehicles.

VSE's Engineering and Logistics Division's was awarded an additional $10 million to its current task order value for increased operational sites and level-of-effort requirements to perform material maintenance, upgrade, and refurbishment projects critical to the equipment readiness of the U.S. Army Reserve. These tasks will be performed by VSE employees at several facilities in California. VSE will also provide the Army Reserve with critical logistics services and training support.

VSE's Fleet Maintenance Division (FMD) has been awarded three new task orders under the R2 Support Contract. The new task orders support various U.S. Naval Shore Command Coastal Warfare Group and SPAWAR programs and represent potential revenues of about $21.6 million if all options are exercised over the next 24 months. FMD will be providing technical engineering support including program management, integrated logistics, and modernization for a variety of systems, including ship alterations and installations and C4ISR technical support services.

Safe Harbor

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.

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 the six-month period ended June 30, 2007, VSE reported consolidated revenues of $280.3 million and earnings of $6.2 million ($1.27 per diluted share). 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.

Source: VSE Corporation

Released October 23, 2007