## About the Cover 

The photographs on the cover show two of the four KIDD-class destroyers being transferred by the United States to the Taiwan Navy. In January 2004 VSE was awarded a delivery order for $100 million to continue its reactivation planning and availability services in connection with the sale and transfer. The delivery order requires VSE to provide advance planning services, upgrades and alterations planning, industrial services, services supporting the Taiwan Navy reactivation planning and management team, and reactivation site project planning support. 

Work is being performed by VSE's BAV Division and its team of subcontractors under BAV's ten- year, $1.1 billion Navy contract supporting the reactivation and transfer of ex-U.S. Navy ships to foreign navies. 

## Corporate Profile 

VSE Corporation is a diversified professional services company established in 1959. The company and its subsidiaries provide services and products to the engineering, energy and environment, defense and homeland security markets around the world. VSE's principal customers are agencies of the U.S. Government and other government prime contractors. Operations are conducted by VSE's professional staff of 500 employees located at offices across the United States and around the world. 

Further information about VSE is available at the company's website at www.vsecorp.com. 

## Stockholder Inquiries 

VSE is an employee and publicly owned company, and its shares are traded on the Nasdaq National Market System under the symbol VSEC. Inquiries about stock ownership, dividends, and stockholder changes of address may be directed to our transfer agent: Registrar and Transfer Company 10 Commerce Drive Cranford, New Jersey 07016-3572, 800-866-1340 or to VSE at 2550 Huntington Avenue Alexandria, Virginia 22303-1499, Attention: Corporate Secretary, 703-329-4770 

## Quality Systems Management 

VSE's policy is to provide products and services of the highest quality to meet the expectations and requirements of our customers on time and at a fair price. VSE's quality management system is registered to the ISO 9001:2000 standard. 

## Forward Looking Statements 

This report contains statements which, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. All forward looking statements involve risks and uncertainties. The forward looking statements in this document are intended to be subject to the safe harbor protection provided by Sections 27A and 21E. 

For discussions identifying some important factors that could cause actual VSE results to differ materially from those anticipated in the forward looking statements, please see VSE's Securities and Exchange Report on Form 10-K for the fiscal year ended December 31, 2003, including discussions captioned "Narrative Description of Business," "Management's Discussion and Analysis," and "Notes to Consolidated Financial Statements." 

Readers are cautioned not to place undue reliance on the forward looking statements, which reflect management's analysis only as of the date hereof. VSE undertakes no obligation to publicly revise the forward looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risk factors described in other documents VSE files from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q to be filed by VSE and any Current Reports on Form 8-K. 

Design and layout by Julie Chappell, Energetics, Incorporated. 

