/C O R R E C T I O N -- VERSAR, Inc./

In the news release, "VERSAR, Inc. Announces Improved Third Quarter Results With Increased Funded Backlog," issued earlier today by VERSAR, Inc. over PR Newswire, we are advised by a representative of the company, that the figures in two of the line items in the financial table were incorrect. Under the "Three Months Ended, March 31, 2006" column, the figures for "(LOSS) INCOME PER SHARE FROM CONTINUING OPERATIONS - BASIC" and "(LOSS) INCOME PER SHARE FROM CONTINUING OPERATIONS - DILUTED," should have been "$0.11" rather than, "---".  Complete, corrected table follows:

                      VERSAR, INC. AND SUBSIDIARIES
                  Consolidated Statements of Operations
           (Unaudited - in thousands, except per share amounts)

                                  For the Three-Month    For the Nine-Month
                                     Periods Ended         Periods Ended
                                  March 31,   April 1,   March 31,  April 1,
                                    2006        2005       2006       2005

  GROSS REVENUE                   $12,974     $14,921    $43,047    $52,835
  Purchased services and
   materials, at cost               4,639       6,098     17,142     26,176
  NET SERVICE REVENUE               8,335       8,823     25,905     26,659

  Direct costs of services
   and overhead                     6,912       7,000     20,817     20,724
  Selling, general and
   administrative expenses          1,437       1,517     4,269       4,571

  OPERATING (LOSS) INCOME             (14)        306       819       1,364

  OTHER EXPENSE
  Interest expense                     19          23        13          46
  Income tax (benefit)               (945)        ---      (945)        ---

  INCOME FROM CONTINUING OPERATIONS   912         283     1,751       1,318

  LOSS FROM DISCONTINUED OPERATIONS   ---        (185)     (205)       (392)

  NET INCOME                         $912         $98    $1,546        $926

  (LOSS) INCOME PER SHARE FROM
   CONTINUING OPERATIONS - BASIC    $0.11       $0.04     $0.22       $0.17

  (LOSS) INCOME PER SHARE FROM
   CONTINUING OPERATIONS - DILUTED  $0.11       $0.03     $0.21       $0.16

  NET INCOME PER SHARE - BASIC      $0.11       $0.01     $0.19       $0.12

  NET INCOME PER SHARE - DILUTED    $0.11       $0.01     $0.19       $0.11

  WEIGHTED AVERAGE NUMBER OF
   SHARES OUTSTANDING - BASIC       8,071       7,914     8,038       7,879

  WEIGHTED AVERAGE NUMBER OF
   SHARES OUTSTANDING - DILUTED     8,336       8,302     8,343       8,306


DATASOURCE: VERSAR, Inc.



Web site:  http://www.versar.com/ 

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