VSE Corporation and Wheeler Bros., Inc. Win US Postal Service Repower Contract

VSE and WBI to deliver repowered fuel efficient gasoline Long Life Vehicle (LLV) prototype

ALEXANDRIA, Va.-- VSE Corporation (NASDAQ: VSEC) announced today that it has received notification from the US Postal Service (USPS) that it will be awarded a contract to deliver a more fuel efficient repowered gasoline LLV prototype delivery vehicle for the existing fleet. VSE submitted a proposal with Wheeler Bros., Inc. (WBI) of Somerset, PA, to develop and deliver the vehicle for testing.

The USPS solicitation asked that contractors propose fuel efficient gasoline or diesel engine to be used in the USPS truck fleet, which is the largest civilian fleet in the world. A prototype vehicle is to be tested and delivered within six months.

The VSE-WBI team proposed a fuel efficient engine designed by WBI especially for the Postal LLV fleet. Dave Wheeler, CEO of WBI, said, "We have spent years and a lot of money developing this engine and we think it will be a big winner. It is designed to be an affordable drop-in solution for the Postal Service. This engine could double the mileage of the current engine and at today's fuel prices, the avoided cost of fuel and environmental benefits will be tremendous."

VSE CEO, Maurice Gauthier, commented, "This is a great match for us. VSE has facilities across the U.S. that refurbish Army vehicles and WBI supplies nearly all the parts for the LLV fleet. For this repower contract our maintenance skills combined with WBI vehicle supply chain expertise makes for a winning combination."

The entire USPS fleet is nearly 215,000 vehicles, approximately twice the size of the Army Humvee fleet. Much of the fleet is nearing the end of its life expectancy and due to the financial condition of the USPS, procuring a new fleet at this time is not feasible. The VSE WBI proposal is designed to extend the service life of the fleet much like the Army has been doing with the Humvee fleet.

VSE acquired Wheeler Bros., Inc. on June 6, 2011. Wheeler Bros., Inc. will operate as a wholly owned subsidiary of VSE.

For more information on VSE, please visit their website at www.vsecorp.com.

For more information on Wheeler Bros., Inc., please visit their web site at www.teamwbi.com.

About VSE

VSE marked its 50th year as a government contractor in 2009. VSE is a diversified Federal Services company of choice for 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 consulting and program management, logistics, equipment and vehicle/vessel refurbishment, engineering, information technology, energy consulting, and construction program management. For additional information on 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.

VSE encourages investors and others to review the detailed reporting and disclosures contained in VSE's public filings with the U.S. Securities and Exchange Commission for further information and analysis of VSE's financial condition and results of operations. The public filings include additional discussion about the status of specific customer programs and contract awards, risks, revenue sources and funding, dependence on material customers, and management's discussion of short and long term business challenges and opportunities.

Safe Harbor

This news release contains statements that 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, including VSE's annual report on Form 10-K for the year ended December 31, 2010 and subsequent reports filed with the Securities and Exchange Commission.

    Source: VSE Corporation