BAV Division Begins Work on Transfer of Destroyers

Monday, July 21, 2003
VSE Corporation has been awarded a U.S. Navy delivery order for $8.1 million to begin reactivation availability planning services in connection with the sale and transfer of four Kidd class DDGs to the Taiwan Navy. The delivery order requires VSE to provide advance planning services, upgrades and alterations planning, towing, industrial services, services supporting the Taiwan Navy reactivation planning and management team, and reactivation site project planning support. Work will be performed by the BAV Division of VSE under BAV's ten-year, $1.1 billion Navy contract to support the reactivation and transfer of ex-U.S. Navy ships to foreign navies. VSE Chairman, President and CEO/COO Don Ervine said, "Since 1995 BAV has transferred more than 30 ships to foreign governments, including the transfer of five ex-U.S. Navy ships to Taiwan. The BAV Team offers worldwide capabilities, including the management of overhauls in foreign shipyards, to accomplish the mission of the Navy's ship transfer program, and we are delighted to begin work on this very important national defense effort to transfer four DDGs to the Taiwan Navy." VSE's BAV Division is under the direction of Jim Knowlton (703-329-4601), Executive Vice President and Director of VSE's International Group. "We have been gearing up for the Kidd class project for several months, and we are off to a fast start," said Mr. Knowlton. "BAV and its team of subcontractors are focused on demonstrating our continuing, combined ability to provide outstanding worldwide technical service to foreign customers in support of the U.S. Navy's Security Assistance Directorate. The transfer of the Kidd class DDGs to the Taiwan Navy is a multi-year effort and will include towing, cold ship reactivation in a U.S. shipyard, logistics, training, crew support, and follow-on logistics and technical support after the transfers are completed." VSE provides diversified services to the engineering, energy and environment, defense, and homeland security markets from more than 15 locations across the United States and around the world. VSE reported revenues of $26.5 million and net income of $432 thousand ($.20 per share) for its most recently reported quarter (quarter ended March 31, 2003).
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