CHARLOTTE, Michigan, May 10, 2007 - Spartan Chassis, Inc., a
subsidiary of Spartan Motors, Inc. (Nasdaq: SPAR), today announced it has
received subcontract orders from two major defense manufacturers totaling
$107.6 million - its two largest specialty-vehicle orders to date.
Spartan Chassis said it has received a $60.0 million order from General
Dynamics Land Systems and a $47.6 million order from Force Protection, Inc.
Spartan Chassis will supply and integrate key chassis components in the
production of advanced tactical vehicles under the Mine Resistant Ambush
Protected, or MRAP, program.
Both orders are scheduled to be completed in 2007 and are slated for use by
U.S. Marines and soldiers fighting in Afghanistan and Iraq. MRAPs are prized by
the military for their V-shaped hulls, raised chassis and improved armor, which
help protect servicemen and women from improvised explosive devices, or IEDs,
mines and other hazards of war.
"This new business is significant in both its magnitude and its validation of
our expertise in automotive integration," said Richard Schalter, president of
Spartan Chassis. "Over the past two years, we have earned a reputation in the
military market by repeatedly demonstrating that we have the ability to deliver
quality products on time. Spartan Chassis is privileged to be in service to
support our nation's defense."
In April 2007, Spartan Chassis announced that it had acquired two facilities
that will be converted to manufacturing plants to meet the strong growth of its
specialty-vehicle product line. The new plants will add a total of 80,000
square feet to Spartan Chassis and will come on line during the third quarter
of this year.
"These two new contracts validate the investments we have made in growing our
specialty-vehicle segment and the confidence that our customers, along with our
shareholders and our board of directors, have in Spartan Chassis," said John
Sztykiel, president and CEO of Spartan Motors. "This contract underscores the
strength of our strategic plan, which focuses on the emergency rescue,
recreational vehicle and specialty markets."
About Spartan Chassis, Inc.:
Spartan Chassis, Inc., a subsidiary
of Spartan Motors, Inc. (Nasdaq: SPAR), is a leading developer and manufacturer
of custom chassis for recreational vehicles, fire trucks and specialty
vehicles. Spartan Motors ( HYPERLINK "http://www.spartanmotors.com"
www.spartanmotors.com), which also manufactures emergency rescue vehicles under
the brand names of Crimson Fire, Crimson Fire Aerials and Road Rescue, reported
sales of $445 million in 2006 and is focused on becoming the premier
manufacturer of specialty vehicles and chassis in North America.
This release contains forward-looking statements, including, without limitation,
statements concerning our business, future plans and objectives and the
performance of our products. These forward-looking statements involve certain
risks and uncertainties that ultimately may not prove to be accurate. Actual
results and future events could differ materially from those anticipated in
such statements. Technical complications may arise that could prevent the
prompt implementation of the plans outlined above. The company cautions that
these forward-looking statements are further qualified by other factors
including, but not limited to, those set forth in the company's Form 10-K
filing and other filings with the United States Securities and Exchange
Commission (available at http://www.sec.gov). Government contracts and
subcontracts typically involve long payment and purchase cycles, competitive
bidding, qualification requirements, delays or changes in funding, extensive
specification development and changes, price negotiations and milestone
requirements. An announced award of a governmental contract is not equivalent
to a finalized executed contract and does not assure that orders will be issued
and filled. Government agencies also often retain some portion of fees payable
upon completion of a project and collection of contract fees may be delayed for
long periods, which can negatively impact both prime contractors and
subcontractors. The company undertakes no obligation to publicly update or
revise any statements in this release, whether as a result of new information,
future events or otherwise, except as required by law.
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