VSE Reports Contract Award from U.S. Department of Energy to Support Federal Energy Management Program

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New Contract Represents Potential Revenues of Approximately $7.2 Million

ALEXANDRIA, Va.--

VSE Corporation (Nasdaq:VSEC) reported today that its subsidiary Energetics Incorporated was awarded a new three-year, $7.2 million contract from the U.S. Department of Energy's (DOE's) National Energy Technology Laboratory (NETL). Through this contract Energetics will assist NETL to provide DOE's Federal Energy Management Program (FEMP) with a range of services, including policy analysis, program planning, and communications and outreach support. FEMP Programs advance the adoption of energy and water-saving and renewable energy technologies and best practices in Federal facilities and operations nationwide.

Energetics President and CEO James E. Reed said, "The Federal Government is the single largest user of energy in the U.S. with over 500,000 buildings and facilities at 8,000 sites nationwide, as well as a large fleet of on- and off-road vehicles. We are delighted with the opportunity to help the Federal establishment reduce its annual energy bill of $14.5 billion."

Established in 1979 and acquired by VSE Corporation in 1995, Energetics Incorporated is a technical and management consulting firm headquartered in Columbia, MD, with offices also in Washington, DC, and Morgantown, WV. 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.

VSE CEO, President and COO Mo Gauthier said, "Energetics provides vital analysis and planning support for high profile DOE programs based on years of accumulated insight and experience. We are very pleased to participate in DOE's important Federal Energy Management Program."

For more information on services provided by Energetics, please see the Company's web site at www.energetics.com or contact Marty Martinez, Vice President, at (410) 290-0370.

VSE provides diversified services to the engineering, energy and environment, defense, homeland security, and law enforcement markets from locations across the United States and around the world. For more information on VSE business units, 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.

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.

Source: VSE Corporation

Released May 6, 2008