Versar and Bank of America Agree to Amend Loan Agreement; New Forbearance Agreement Included in Steps Toward Long-Term Liquidity Solution

SPRINGFIELD, VA / ACCESSWIRE / December 5, 2016 / Versar, Inc. (NYSE MKT: VSR) today announced that the Company and Bank of America have agreed to amend their original Loan Agreement. This agreement, which is reflected in a term sheet dated December 2, 2016, will provide the Company with adequate liquidity to continue to operate and will modify the Company's loan covenants going forward. In addition, Versar will regularly report financial performance to Bank of America, retain its Chief Restructuring Officer and will continue to work with a financial advisor in order to fulfill the requirements of the amended Loan Agreement.

To enable the parties to finalize the amended Loan Agreement, the Company and Bank of America have entered into a sixth forbearance agreement November 30, 2016, with the term extended through December 9, 2016. Versar continues to operate successfully within the obligations established by this and prior forbearance agreements.

According to Versar's Chief Executive Officer, Tony Otten, "The term sheet and sixth forbearance agreement are important elements in successfully concluding our current process and implementing a long-term solution to our liquidity needs. We are pleased by Bank of America's commitment at a time when Versar continues to make substantive progress in achieving our goal of returning to growth and profitability."

VERSAR, INC., headquartered in Springfield, Virginia, is a publicly-traded global project management company providing sustainable value oriented solutions to government and commercial clients in the construction management, environmental services, and professional services market areas.

VERSAR operates the following websites: www.versar.com and www.versarpps.com.

Find out more about VERSAR at:

https://twitter.com/VersarInc
https://www.facebook.com/VersarInc
http://www.linkedin.com/company/38251

This news 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 fiscal year ended June 26, 2015, as updated from time to time in the Company's periodic filings. The forward-looking statements are made as of the date hereof and Versar does not undertake to update its forward-looking statements.

Contact:

Karin Weber
M&A, Investor Relations Manager
Versar, Inc.
(703) 642-6706
kweber@versar.com

Robert Ferri
Robert Ferri Partners
(415) 575-1589
robert.ferri@robertferri.com

SOURCE: Versar, Inc.