VSE CORPORATION
            2550 Huntington Avenue, Alexandria, Virginia 22303-1499
                  Telephone (703) 960-4600 Fax (703) 960-2688



PRESS RELEASE                                            FOR IMMEDIATE RELEASE
NASDAQ Stock Symbol:  VSEC  Contact:           C. S. Weber (CFO), 703/329-4770 


                     "VSE AWARDED TEN YEAR NAVY CONTRACT"

     Alexandria, Virginia.  August 18, 1995.-- VSE Corporation reported today
that it has been awarded a cost-plus-award-fee contract by the U. S. Navy to
provide engineering, technical, and logistics support services for various
classes of U. S. ships bought, leased, or otherwise transferred to foreign
governments.  The initial value of the contract is approximately $202 million. 
If all options are exercised by the Government, the total contract value is
estimated to be in excess of one billion dollars over a ten year period.

     To perform the contract,  VSE has teamed with the international management
and technology consulting firm of Booz Allen & Hamilton Inc. of McLean, 
Virginia, and with other subcontractors.  The principal subcontractors of the 
Booz Allen and VSE ("BAV") team are:  Newport News Shipbuilding, Newport News, 
Virginia; Ingalls Shipbuilding, Pascagoula, Mississippi; Cascade General, 
Portland, Oregon; Detyens Shipyards, Inc., Charleston, South Carolina; Lockheed 
Martin of Cherry Hill, New Jersey, and Syracuse, New York; W & W Logistics, West
Caldwell, New Jersey; Atlantic Ordnance and Gyro, Inc., Norfolk, Virginia; 
George G. Sharp, Inc., Arlington, Virginia; B & D Marine and Industrial Boilers,
Inc., Charleston, South Carolina; and Instrument Control Service, Inc., 
Pensacola, Florida.

     Under the terms of the contract, the BAV team will provide foreign
recipients of about 100 U. S. ships to be bought, leased, or otherwise
transferred through the foreign military sales (FMS) program with the means to
support the ships by U S. contractors for the remainder of their life cycle.  
The program requires the BAV team to be familiar with all aspects of supporting 
ship systems for various classes of U. S. ships including the FF-1040, FF-1052, 
DDG-2, LST 1179, FFG-7 and other ships which are no longer in, or are planned 
for removal from, the U. S. Navy active ship inventory.  The worldwide support
services for this program include design, configuration management, field
engineering, maintenance planning, maintenance, spare parts support, training,
and casualty and depot level repair.

     VSE Chairman and CEO Donald M. Ervine said, "We are extremely pleased by
the Navy's selection of VSE and the BAV team to perform this effort.  We
recognize that this opportunity will require close cooperation with the Navy and
the full participation of every member of the BAV team to deliver the services
required by our international trading partners."

     VSE provides engineering, development, testing and management services to
maintain and modernize products, equipment, and systems, principally for 
agencies of the U. S. Government and other prime contractors.  The company has 
about 1,200 employees providing services from more than 20 locations across the 
United States.

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