VSE Reports First Quarter 2009 Results

Company Earns $0.91 Per Diluted Share in Quarter (up 28%); Revenues Increase 27%
ALEXANDRIA, Va.--(Business Wire)--
VSE Corporation (Nasdaq:VSEC) reported the following consolidated financial
results for the periods ended March 31, 2009 and 2008:

VSE Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except share and per share amounts)

Three months ended
March 31,
2009 2008
Revenues $ 240,455 $ 188,723
Contract costs 232,809 182,816
Gross profit 7,646 5,907
Selling, general and administrative expenses 202 163
Interest income, net (59 ) (147 )
Income before income taxes 7,503 5,891
Provision for income taxes 2,863 2,293
Net income $ 4,640 $ 3,598

Basic earnings per share $ 0.91 $ 0.71
Basic weighted average shares outstanding 5,112,356 5,058,784

Diluted earnings per share $ 0.91 $ 0.71
Diluted weighted average shares outstanding 5,126,629 5,086,670

Dividends declared per share $ 0.045 $ 0.040

Financial Results

VSE revenues increased approximately $52 million (up 27%) for the three-month
period of 2009 compared to the same period of 2008. The increase is due
primarily to: an increase in our Communications and Engineering Division (CED)
revenues from work on contract task orders, including the Route Clearing Vehicle
Modernization program; an increase in International Group revenues; the
inclusion of G&B Solutions revenues in our consolidated financial results in
2009 as compared to 2008 when G&B had not yet been acquired; and growth in the
equipment refurbishment services provided by our Engineering and Logistics (ELD)
division.

VSE net income increased approximately $1.04 million (up 29%) for the
three-month period of 2009 compared to the same period of 2008. The increase in
net income was primarily due to the profits associated with the increases in
revenues reported above and to the profits earned by our information technology
services subsidiary G&B Solutions.

VSE`s funded backlog was approximately $555 million at March 31, 2009 compared
to approximately $567 million at December 31, 2008.

CEO Comments

VSE CEO Mo Gauthier commented, "VSE continues to grow and our revenues have
increased by meeting requirements from existing and new customers. Profits have
increased as our volume increases, and improving our margins remains a top goal.
Our key indicators are positive, including significant new contract awards,
identified opportunities for new work, and a substantial increase in employees.
Since the beginning of 2008 to the end of the first quarter of 2009, we have
nearly doubled our employee count from 1,223 to 2,244. The current prospects for
2009 continue to be favorable; however, 2009 is a federal government transition
year and government spending priorities may change in ways that we cannot
predict. We look forward to reporting on our progress."

VSE Services

VSE marked its 50th year as a government contractor in January 2009. Established
in 1959, VSE is a diversified professional services company providing
engineering and consulting services, systems integration, infrastructure
support, and information technology management and solutions, principally to
agencies of the United States Government and other government prime contractors
at locations across the United States and around the world. For additional
information on VSE services and products, please see our web site at
www.vsecorp.com or contact Randy Hollstein, Corporate Vice President of
Marketing, at (703) 329-3206.

The company encourages investors and others to review the detailed reporting and
disclosures contained in VSE public filings 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 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
News Contact:
Keren Ackerman, 703-329-4605

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