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VSE Announces Plan to Consolidate Two Operating Groups

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VSE Corporation (the “Company”, NASDAQ: VSEC) announced plans to consolidate its International Group and Federal Group, and report their combined results as a single operating group beginning in 2015. The consolidation of the two operating groups into one will be managed by the Company’s Chief Executive Officer, and brings much of the Company’s U.S. Department of Defense work under a single umbrella. In connection with this action, the Company has eliminated several officer positions, including International Group President and Federal Group President, effective September 30, 2014.

“Given our focus on improving competitiveness in our legacy markets, we have concluded that combining our Federal and International groups into one is a cost effective means to move into 2015,” said VSE CEO Maurice “Mo” Gauthier. “The International and Federal Groups have been long-time providers to our legacy markets, predominately providing Maintenance/Repair/Overhaul (MRO) support to military and Government fleets.”

These actions follow a strategic review of the Company’s operating model and are part of a continuing cost balancing initiative. We expect to achieve further operational efficiencies as we move forward with this consolidation.

About VSE

Established in 1959, VSE is a diversified federal services company with experience in solving issues of global significance with integrity, agility, and value. VSE is dedicated to our clients’ success by delivering sustainment services for legacy systems and equipment and professional services through talented people and innovative solutions. Key competencies include sustainment services, supply chain management, maintenance, repair and overhaul, logistics, engineering, energy, IT solutions and consulting. For additional information regarding VSE services and products, please see the Company’s web site at www.vsecorp.com or contact Christine Kaineg, VSE Investor Relations at (703) 329-3263.

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