Profile: Versar Inc (VSR)

Versar, Inc. (Versar) is a project and program management firm that provides the government, municipalities, and the private sector a value-added solution for infrastructure, facilities management, construction, environmental quality, professional services, defense and homeland security needs. The Company operates in four business segments: Program Management, Compliance and Environmental Programs, Professional Services and National Security. The Program Management business segment manages projects with business processes and management to the rest of the Company. The Compliance and Environmental Programs business segment provides regulatory and environmental consulting support to several federal government and municipal agencies. The Professional Services business segment provides outsourced personnel to various government agencies. The National Security business segment provides solutions to the federal government, including testing and evaluation, and personal protective solutions. In January 2010, the Company acquired Professional Protection Systems, Ltd.

Program Management Business Segment

The Program Management business segment is the largest component of Versar’s business base. During fiscal year ended June 26, 2009, the Program Management business segment performed construction related services in Iraq, Afghanistan, the United Arab Emirates, and the continental United States. These programs include the Company’s Air Force construction management and quality assurance work to support the rebuilding efforts in Iraq, Afghanistan and personal services support contract with the United States Army Corps of Engineers (USACE). It provides personnel to the United States Army. Continental United States (CONUS)-based construction work services are primarily provided for various design, build and renovation projects throughout the United States. The Company and Johnson Controls Federal Systems have jointly formed a limited liability corporation to pursue this work.

Compliance and Environmental Programs Business Segment

Versar provides support for regulatory compliance programs involving air, water, cultural resources, chemical and transportation industries. The Company supports the United States Environmental Protection Agency (EPA), providing technical risk assessments for pollution prevention. Furthermore, the Company provides support to the (USACE) and several municipal entities to help with environmental compliance, biological assessments, and resource management, as well as many local municipalities in the United States. Versar supports the states of Virginia, Maryland, New York, Pennsylvania and Delaware. The Company has relationships with the EPA, National Oceanic and Atmospheric Administration (NOAA), and the United States Army Corps of Engineers (USACE). Through its contracts with the Philadelphia and Wilmington Districts of the USACE, Versar helps evaluate the marine life and how they are impacted by the USACE dredging programs. It also helps several counties in Maryland and Virginia with their watershed programs identifying impaired watersheds and providing solutions for their restoration programs.

Professional Services Business Segment

Versar provides onsite environmental management and professional services to over 20 United States Department of Defense (DoD) installations and industrial facilities. This segment provides a solution to the clients to meet their requirements. This segment represents approximately 10% of the Company’s overall gross revenues, during fiscal 2009.

National Security Business Segment

Versar provides national security services primarily through the operations of its subsidiary, GEOMET Technologies, LLC (GEOMET). The National Security business segment operates in several defense markets, including personal protection equipment, chemical testing laboratory and GEOMET. GEOMET is engaged in developing, testing, and manufacturing personal protection equipment (PPE). GEOMET provides its Disposable Toxicological Agent Protective System (DTAPS) Level B coverall chemical/biological protective suits, to the National Fire Protection Association (NFPA) 1994, Class 2 standards. GEOMET owns and operates the only declared Schedule I chemical agent laboratory in the United States under the Chemical Weapons Convention, which is overseen by the Department of Commerce.

Versar owns and operates a chemical laboratory. The laboratory provides materials testing services to the United States government and to private industries, particularly manufacturers of chemical protective equipment and clothing. The laboratory provides materials testing services to the United States Government and to private industries, particularly manufacturers of chemical protective equipment and clothing. Other laboratory services include evaluation of new chemical agent detection instrumentation, chemical agent decontamination and destruction techniques, site remediation/environmental cleanup support, analysis of environmental samples of air, soil and water, and sludge for the presence of chemical and biological agents and degradation products, and testing of personal protective systems for component survivability. GEOMET provides nuclear, chemical and biological test and evaluation services to the West Desert Test Center (WDTC) located on the United States Army Dugway Proving Ground (DPG), Utah.