Versar, Inc. Announces Highest Quarterly Revenue in Company`s History

SPRINGFIELD, Va.--(Business Wire)--
Versar, Inc. (NYSE Amex: VSR) today announced third quarter financial results
for the period ended March 27, 2009. Gross revenue for the third quarter of
fiscal year 2009 was $31,851,000, a 10% increase from the third quarter of
fiscal year 2008 gross revenue of $28,874,000. This is the highest quarterly
revenue in Versar`s forty year history. Net income for the third quarter of
fiscal year 2009 was $1,125,000, or $0.12 per share compared to the same period
last year of $913,000, or $0.10 per share. The 23% improvement in net income
resulted from revenue growth and better profit margins. The revenue increase was
a result of growth in our reconstruction support efforts in Iraq and
Afghanistan, increased U.S. construction management business and laboratory
testing work in our National Security business segment.

For the nine months of fiscal year 2009, gross revenue was $84,816,000, a
decrease of $2,295,000, or 3%, compared to $87,111,000 gross revenue in the nine
months of the previous fiscal year. Net income for the nine months of fiscal
year 2009 was $2,214,000, or $0.24 per share compared to the same period in the
previous year of $2,675,000, or $0.29 per share.

Dr. Ted Prociv, President and CEO of Versar said, "Our third quarter performance
has considerably improved. In fact, it is the strongest quarterly revenue in
Versar`s history. It bodes well for a strong fourth quarter and final year
results. We continue to be profitable, debt free, and maintain a large backlog
of work."

Dr. Prociv continued, "We continue to accelerate our large management projects
in the United States, Iraq and Afghanistan. We also recognize the increasing
demand for our professional services and the national security testing we
provide. Our key indicators are positive and the prospects of new contracts are
both compelling and favorable. Our future continues to look promising."

VERSAR, INC., headquartered in Springfield, VA, is a publicly held international
professional services firm supporting government and industry in national
defense/homeland defense programs, environmental health and safety and
infrastructure revitalization. VERSAR operates a number of web sites, including
the corporate Web sites, http://www.versar.com, http://www.homelanddefense.com,
and http://www.geomet.com; http://www.viap.com and http://www.dtaps.com.

This press release contains forward-looking information. The forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements may be
significantly impacted by certain risks and uncertainties described herein and
in Versar`s Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the year ended June 27, 2008. The forward-looking statements are
made as of the date hereof and Versar does not undertake to update its
forward-looking statements.

VERSAR, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited - in thousands, except per share amounts)

For the Three-Month For the Nine-Month
Periods Ended Periods Ended
March 27, March 28, March 27, March 28,
2009 2008 2009 2008

GROSS REVENUE $ 31,851 $ 28,874 $ 84,816 $ 87,111
Purchased services and materials, at cost 17,470 16,212 46,670 52,348
Direct costs of services and overhead 10,026 8,866 27,408 24,401
GROSS PROFIT 4,355 3,796 10,738 10,362

Selling, general and administrative Expenses 2,525 2,250 6,759 5,882

OPERATING INCOME 1,830 1,546 3,979 4,480

OTHER EXPENSE
(Gain) loss on marketable securities (20 ) --- 326 ---
Interest expense (income) 21 (35 ) 40 (151 )
INCOME BEFORE INCOME TAXES 1,829 1,581 3,613 4,631

Income tax expense 704 668 1,399 1,956

NET INCOME $ 1,125 $ 913 $ 2,214 $ 2,675

NET INCOME PER SHARE - BASIC $ 0.12 $ 0.10 $ 0.24 $ 0.30
NET INCOME PER SHARE - DILUTED $ 0.12 $ 0.10 $ 0.24 $ 0.29

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC 9,170 8,985 9,099 8,890

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED 9,170 9,257 9,099 9,246

Versar, Inc.
James Dobbs, 703-642-6712
Senior Vice President
Email: jdobbs@versar.com
or
Investor Relations Contact:
Barry Kaplan Associates
Andrew J. Kaplan, 732-747-0702
Email: smallkap@aol.com

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