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VSE Aviation, Inc., a Subsidiary of VSE Corporation, Acquires 1st Choice Aerospace

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VSE Aviation, Inc. (VSE Aviation), a subsidiary of VSE Corporation (VSE)
(NASDAQ: VSEC), announced today that it has acquired 1st Choice
Aerospace, Inc. (1st Choice), two privately owned aviation
supply chain management companies with operations in Florida and
Kentucky that provide component maintenance, repair and overhaul (MRO)
services and products for new generation and legacy commercial aircraft
families.

The initial purchase price paid at closing was $112 million in cash. The
purchase agreement also includes potential post-closing payments of up
to $40 million if 1st Choice surpasses certain performance
thresholds as defined in the purchase agreement during 2019 and 2020.
Other purchase price adjustments also may be required based on certain
post-closing determinations, including in respect of the closing net
working capital.

1st Choice had revenues of approximately $29 million in
2017 and estimated revenues of approximately $47 million in 2018 with
strong operating margins. Such estimated results are not necessarily
indicative of future financial performance and the actual results for
2018 may differ from the estimated results. VSE Aviation has retained
the senior management team through employment contracts to continue
management of 1st Choice operations and its approximately 200
employees.

"We are pleased to add 1st Choice's service offerings to our
supply chain and MRO portfolio," said VSE CEO and President, Maurice
"Mo" Gauthier. "We see opportunities to strategically align 1st
Choice's offerings with our existing domestic and international markets,
including our recent Singapore and European initiatives. 1st
Choice has built a highly regarded business with a proven record of
superior operational performance delivered by an excellent team."

"We believe that our acquisition of 1st Choice will
significantly broaden our client base and further extend our thrust into
the commercial aerospace supply chain market," said Paul Goffredi,
President of VSE Aviation. "Their quality work, quick turnaround times,
excellent customer service, aptitude for adding new capabilities, and
opportunistic and entrepreneurial approach make them an attractive
addition to our team. 1st Choice's growth potential and
profit margins offer us a compelling opportunity to add value to our
operating portfolio. We anticipate operational synergies with respect to
customers, product lines, supply lines, and technical expertise."

"We look forward to joining the VSE team while we retain our strong
brand," said Mario Catalano, a senior officer and shareholder of 1st Choice.
"This combination provides us with the strategic support and capital
backing required to better serve our customer base and optimize our
growth strategy, and we believe it will be mutually beneficial to VSE
Aviation and 1st Choice."

VSE funded the acquisition with its existing bank revolving loan
provided by its lending group led by Citizens Bank, N.A. VSE received
financial advisory services for the acquisition from Citizens Capital
Markets, Inc. and SunTrust Robinson Humphrey. VSE received industry and
market due diligence support for the acquisition from Oliver Wyman
CAVOK. VSE received legal advice for the acquisition from Arent Fox LLP,
Washington, DC. 1st Choice received M&A advisory services
from XLS Partners, Inc., Chicago, IL, and legal services from Gunster,
West Palm Beach, FL.

About 1st Choice Aerospace

1st Choice provides MRO services, including pneumatics, fuel,
electro-mechanical, electrical accessories, crew seats, interiors,
lavatory systems, oxygen systems, cargo systems, and containers. 1st
Choice has Federal Aviation Administration and European Aviation Safety
Agency Part 145 certified component repair stations located in Florida
and Kentucky. 1st Choice customers include commercial and
cargo airline operators, end users, integrators that manage airline
repairs, Original Equipment Manufacturers, suppliers, and other MRO
providers. For additional information regarding 1st Choice's
services and products, visit www.firstchoice.aero.

About VSE Aviation

Established in 2015 by VSE, VSE Aviation is a family of companies that
includes Air Parts & Supply Co., CT Aerospace LLC, Kansas Aviation of
Independence LLC, Prime Turbines LLC, VSE Aviation GmbH, and VSE
Aviation Singapore PTE LTD that specialize in MRO services and parts
supply for commercial, corporate and regional aircraft. For additional
information regarding VSE Aviation services and products, visit www.vsecorp.com/aviation
or contact Karen Goode at +1 (972) 406-2153.

About VSE Corporation

VSE (NASDAQ:VSEC) is a diversified products and services company
providing logistics solutions with integrity, agility, and value. VSE is
dedicated to making our federal and commercial clients successful by
delivering innovative solutions for vehicle, ship, and aircraft
sustainment, supply chain management, platform modernization, mission
enhancement, and program management, and providing energy, IT, and
consulting services. For additional information regarding VSE services
and products visit www.vsecorp.com
or contact Christine Kaineg, VSE Investor Relations, at +1 (703)
329-3263.

Safe Harbor

This news release contains statements that to the extent they are not
recitations of historical fact, constitute "forward looking statements"
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's public
filings with the Securities and Exchange Commission.

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