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$8.1 Million Design-Build Contract Awarded to VERSAR

VERSAR, Inc. (Amex: VSR) announced today it was competitively selected and awarded $625,000 representing the design portion of a not to exceed $8.1M design-build contract for the design and construction of two new municipal aquatic centers for the Town of Gilbert, Arizona. In the last two decades, Gilbert has grown at a pace unparalleled by most communities in the United States (12% annually) and continues to make significant investments in municipal infrastructure to support this growth. The Town has partnered with the Chandler, AZ Unified School District and the Higley, AZ Unified School District to build two new competitive aquatic facilities adjacent to new high schools currently under contract for construction.

VERSAR's Tempe, Arizona office has been providing Architecture, Engineering, and construction management services to its municipal clients in the southwestern U.S. and the metropolitan Phoenix area since 1986. The Town of Gilbert is a longstanding customer. The design portion, funded at $625,000, will begin immediately. Upon negotiation of the final construction price construction, VERSAR is anticipated to begin construction by October 2006 with completion scheduled in August 2007. The new facilities will be opened at the start of the 2007-2008 school year. The final construction price is subject to negotiation and approval by the town.

Dr. Ted Prociv, President and CEO said, "I am excited to see the continued growth and success of our Western regional offices. Furthermore, I am delighted that the engineering and construction services VERSAR provides will be used to enhance the quality of life for the residents of the communities where we live and work. The selection of VERSAR by the Town of Gilbert solidifies our commitment to provide Infrastructure and Management Services to our customers and demonstrates the broad services we offer in architecture, engineering, and construction."

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