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<SEC-DOCUMENT>0001157523-10-001245.txt : 20100225
<SEC-HEADER>0001157523-10-001245.hdr.sgml : 20100225
<ACCEPTANCE-DATETIME>20100225172909
ACCESSION NUMBER:		0001157523-10-001245
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100225
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100225
DATE AS OF CHANGE:		20100225

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VSE CORP
		CENTRAL INDEX KEY:			0000102752
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ENGINEERING SERVICES [8711]
		IRS NUMBER:				540649263
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-03676
		FILM NUMBER:		10634925

	BUSINESS ADDRESS:	
		STREET 1:		2550 HUNTINGTON AVE
		CITY:			ALEXANDRIA
		STATE:			VA
		ZIP:			22303
		BUSINESS PHONE:		7039604600

	MAIL ADDRESS:	
		STREET 1:		2550 HUNTINGTON AVENUE
		CITY:			ALEXANDRIA
		STATE:			VA
		ZIP:			22303

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VALUE ENGINEERING CO
		DATE OF NAME CHANGE:	19790612
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a6194625.htm
<DESCRIPTION>VSE CORPORATION 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 10pt; font-family: Times New Roman">
    <p style="text-align: center">
      SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549<br>FORM 8-K
    </p>
    <p style="text-align: center">
      Current Report<br>Pursuant to Section 13 or 15(d) of<br>the Securities
      Exchange Act of 1934
    </p>
    <p style="text-align: center; white-space: nowrap">
      Date of Report (Date of earliest event reported):&#160;&#160;February 25, 2010<br><br><br><br>VSE
      CORPORATION<br>(Exact Name of Registrant as Specified in its Charter)
    </p>
    <p style="text-align: center">
      DELAWARE<br>(State or Other Jurisdiction of Incorporation or
      Organization)
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-size: 10pt; margin-left:auto;margin-right:auto; font-family: Times New Roman; margin-bottom: 10.0px; width: 70%">
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; width: 50%" valign="top">
          0-3676
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; width: 50%" valign="top">
          54-0649263
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          (Commission File Number)
        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          (I.R.S. Identification Number)
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 50%" valign="top">
          2550 Huntington Avenue
        </td>
        <td style="width: 50%">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 50%" valign="top">
          Alexandria, Virginia
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; width: 50%" valign="top">
          22303-1499
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 50%" valign="top">
          (Address of Principal Executive Offices)
        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          (Zip Code)
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center; white-space: nowrap">
      Registrant's Telephone Number, Including Area Code:&#160;&#160;(703) 960-4600
    </p>
    <p>
      Check the appropriate box below if the Form&#160;8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><br>
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      VSE CORPORATION
    </p>
    <p style="white-space: nowrap">
      Item 2.02.&#160;&#160;Results of Operations and Financial Condition
    </p>
    <p>
      On February 25, 2010, VSE Corporation issued a press release announcing
      its financial results for the three- and twelve-month periods ended
      December 31, 2009.&#160;&#160;A copy of the press release is being furnished as
      Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.
    </p>
    <p style="white-space: nowrap">
      Item 9.01.&#160;&#160;Financial Statements and Exhibits
    </p>
    <p style="white-space: nowrap">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(d)&#160;&#160;Exhibits
    </p>
    <p style="margin-left: 30.0px">
      Exhibit<br><u>Number</u>
    </p>
    <p style="white-space: nowrap">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;99.1&#160;&#160;&#160;&#160;Press Release dated February 25, 2010 entitled,
      &quot;VSE Reports Results for Fourth Quarter and Year End 2009&quot;&#160;&#160;
    </p>
    <p style="white-space: nowrap">

    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      SIGNATURES
    </p>
    <p>
      Pursuant to the requirements of the Securities Exchange Act of 1934, the
      Registrant has duly caused this report to be signed on its behalf by the
      undersigned thereunto duly authorized.
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-size: 10pt; margin-left:auto;margin-right:auto; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td style="width: 30%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 10%" valign="top">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">
          VSE CORPORATION
        </td>
        <td style="width: 40%">

        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 10%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Registrant)
          </p>
        </td>
        <td style="width: 40%">

        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 10%">

        </td>
        <td style="width: 20%">

        </td>
        <td style="width: 40%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 10%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">

        </td>
        <td style="width: 40%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 30%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date: February 25, 2010
          </p>
        </td>
        <td style="width: 10%">

        </td>
        <td style="text-align: left; padding-left: 10.0px; border-bottom: solid black 1.0pt; width: 20%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ T. R. Loftus
          </p>
        </td>
        <td style="width: 40%">

        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 10%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            T. R. Loftus
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 10%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Executive Vice President and Chief Financial Officer
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
  </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a6194625-ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
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<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>VSE
      Reports Financial Results for Fourth Quarter and Year End 2009</b></font>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Net
      Income Increases 26% for 2009</b></font>
    </p>
    <p>
      ALEXANDRIA, Va.--(BUSINESS WIRE)--February 25, 2010--VSE Corporation
      (Nasdaq:&#160;VSEC) reported the following consolidated financial results for
      the three- and twelve-month periods ended December 31, 2009.
    </p>
    <p>
      Financial Results
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td colspan="20">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="20" valign="top">
          VSE Corporation and Subsidiaries
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="20" valign="top">
          Consolidated Statements of Income (Unaudited)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="20" valign="top">
          (dollars in thousands, except share data)
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt" colspan="20">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="8" valign="top">
          Three Months Ended
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="9" valign="top">
          Twelve Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="8" valign="top">
          December 31,
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="9" valign="top">
          December 31,
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          2008
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          2008
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Revenues
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          256,007
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          296,513
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,014,639
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,043,735
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          Contract costs
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          247,504
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          287,163
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          974,897
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          1,011,408
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          8,503
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,350
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          39,742
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          32,327
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          459
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          512
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,263
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,193
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          Interest (income) expense, net
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          (4
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          3
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          (120
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          (115
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          8,048
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          8,835
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          38,599
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          31,249
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          Provision for income taxes
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          2,832
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          3,471
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          14,575
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          12,209
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: double black 2.25pt" valign="top">
          Net income
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          5,216
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          5,364
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          24,024
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; padding-right: 0.0px" valign="bottom">
          19,040
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Weighted average shares outstanding:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5,138,453
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5,087,898
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5,128,344
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5,072,131
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          Diluted
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          5,169,040
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          5,103,546
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          5,146,347
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          5,096,186
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Earnings per share:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Basic &#8211; Net income
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1.02
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1.05
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4.68
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          3.75
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          Diluted &#8211; Net income
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          1.01
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          1.05
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          4.67
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; padding-right: 0.0px" valign="bottom">
          3.74
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>
      For the fourth quarter of 2009, revenues were $256.0 million compared to
      $296.5 million in the fourth quarter of 2008. Fourth quarter 2009 net
      income was $5.2 million, or $1.01 per diluted share, compared to $5.4
      million, or $1.05 per diluted share in the fourth quarter of 2008.
    </p>
    <p>
      Revenues in 2009 were $1.015 billion, compared to $1.044 billion in
      2008. Net income for 2009 was $24.0 million, up 26% from $19.0 million
      in 2008. Diluted earnings per share for 2009 were $4.67, up 25% from
      $3.74 in 2008.
    </p>
    <p>
      The revenue decline for the fourth quarter of 2009 and the full year
      2009 was primarily caused by the expiration of the Army Equipment
      Support Program under U.S. Army CECOM&#8217;s Rapid Response contract.
      Additionally, the construction management business was significantly
      impacted in 2009 by work schedule delays at the Port of Anchorage
      Intermodal Expansion Project. This decline was partially offset by
      increases in engineering and technical services provided to the U.S.
      Navy; increased equipment repair and refurbishment services performed in
      the U.S. and Southwest Asia for the U.S. Army; and increased ship repair
      and transfer services.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Net profit margin for the fourth quarter of 2009 was 2.0%, up from 1.8%
      for the fourth quarter of 2008. Net profit margin for 2009 was 2.4%, up
      from 1.8% for 2008. The primary drivers of improved net income and
      margins in 2009 were: increased higher margin equipment repair and
      refurbishment services performed in the United States and Southwest
      Asia; increased profits on the Treasury Seized Asset Program; and the
      inclusion of G&amp;B Solutions, Inc.&#8217;s (G&amp;B) financial results for 2009.
    </p>
    <p>
      Cash flows from operations for 2009 were $24.4 million, up 6% from $22.9
      million in 2008. Bookings were $939 million in 2009 compared to $1.2
      billion in 2008. Funded contract backlog at December 31, 2009 was $476
      million, compared to $567 million at December 31, 2008.
    </p>
    <p>
      Operational Highlights in 2009
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Expanded operations in Southwest Asia, serving as the prime contractor
        for the Route Clearing Vehicle Fleet Modernization Program in Iraq and
        Afghanistan to improve the U.S. military's defense against roadside
        mines and improvised explosive devices (IEDs).
      </li>
      <li style="margin-bottom: 10.0px">
        Received prime and subcontracts for various U.S. Department of Defense
        (DoD) projects, including: Mine Resistant Ambush Protected Joint
        Logistics Integrator (MRAP JLI) II for the Army and Marine Corps;
        up-armoring support for High Mobility Multipurpose Wheeled Vehicles
        (FRAG6 M1151); heavy equipment mechanics for field services support;
        counter radio controlled improvised explosive device application
        systems integration; Driver&#8217;s Vision Enhancer-Family of Systems,
        (DVE-FOS) program;<b> </b>and continued operational support for the
        U.S. Air Force Engineering Networked Training Center.
      </li>
      <li style="margin-bottom: 10.0px">
        Under the NAVSEA Foreign Military Sales contract, successfully
        transferred the Admiral Higgins U.S. Navy oiler from Suisun Bay (near
        San Francisco) to Alabama for final restoration before transferring
        the vessel to the Chilean Navy for dedication as the renamed AO-52
        Almirante Montt.
      </li>
      <li style="margin-bottom: 10.0px">
        International Group received a five-year Task Order under the SEAPORT
        E Contract to support all phases of life-cycle management for
        explosive-actuated devices such as aircraft ejection seats.
      </li>
      <li style="margin-bottom: 10.0px">
        Our subsidiary G&amp;B was awarded a five-year contract by the U.S. Army
        Armament Research, Development and Engineering Center (ARDEC) to
        provide Enterprise Excellence Services in support of the Army&#8217;s
        Continuous Process Improvement Program (CPI).
      </li>
      <li style="margin-bottom: 10.0px">
        Our subsidiary Energetics Incorporated was awarded a three-year
        subcontract in support of the U.S. Department of Energy (DoE) Office
        of Electricity Delivery and Energy Reliability, leading research and
        development programs and activities in electricity policy and analysis.
      </li>
    </ul>
    <p>
      Commenting on VSE&#8217;s financial results for 2009, Maurice &#8220;Mo&#8221; Gauthier,
      VSE&#8217;s CEO said, &#8220;The 26% increase in full year net income and improved
      margins were driven by a reduced reliance on subcontract labor and an
      expansion of our direct workforce. We added 614 employees during 2009,
      ending the year with 2,534 employees. On the revenue and bookings side,
      we have experienced headwinds from delays in the awarding of federal
      government contracts in 2009 and into the first half of 2010.&#8221;
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      &#8220;Looking ahead, we expect to continue benefiting from significant
      ongoing DoD investments in sustainment and refurbishment of military
      vehicles and equipment occurring in both the U.S. and Southwest Asia, as
      well as growth in our IT, Energy and Management Consulting business,
      which serves federal civilian agencies. We also expect to see a
      continued strong market for our core expertise &#8211; sustainment of legacy
      military systems, operational support for the warfighter, engineering
      support for foreign military sales, IT services, construction
      management, and technical and management consulting &#8211; which we expect
      will result in continued bottom-line improvement into 2010.&#8221;
    </p>
    <p>
      About VSE
    </p>
    <p>
      VSE is a federal services company of choice for solving issues of global
      significance with integrity, agility and value. VSE, which marked its
      50th year as a government contractor in January 2009, is dedicated to
      making our clients successful by delivering talented people and
      innovative solutions for logistics, engineering and IT services,
      construction program management and technical and management consulting.
      For additional information on VSE services and products, please see our
      web site at <u>www.vsecorp.com</u> or contact Randy Hollstein, Corporate
      Vice President of Sales and Marketing, at (703) 329-3206.
    </p>
    <p>
      VSE encourages investors and others to review the detailed reporting and
      disclosures contained in VSE&#8217;s public filings with the U.S. Securities
      and Exchange Commission for further information and analysis of VSE&#8217;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&#8217;s discussion of short
      and long term business challenges and opportunities.
    </p>
    <p>
      Safe Harbor
    </p>
    <p>
      This news release contains statements that to the extent they are not
      recitations of historical fact, constitute &#8220;forward looking statements&#8221;
      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&#8217;s public
      filings with the Securities and Exchange Commission, including VSE&#8217;s
      annual report on Form 10-K for the year ended December 31, 2008 and
      subsequent reports filed with the Securities and Exchange Commission.
    </p>
    <p>

    </p>
    <p>
      CONTACT:<br>VSE News Contact:<br>Keren Ackerman, 703-329-4605
    </p>
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