About the Cover Corporate Profile Stockholder Inquiries Quality Systems Management Forward Looking Statements 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. 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. 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 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. 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.