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Spartan Motors Reports Q2 Sales & Earnings

27 July 2000

Six-Month Figures Show Improvement Due to Strong Sales of Emergency Vehicles

    CHARLOTTE, Michigan - Spartan Motors, Inc. today reported slightly higher 
earnings on a sales decline of 2.7 percent for the second quarter ended June 30, 
2000.

    The Charlotte, Mich.-based manufacturer of custom chassis, emergency
vehicles and buses said that net earnings for the 2000 second quarter grew to 
$1.014 million, or $0.09 per diluted share, from $1.001 million, or $0.08 per 
diluted share, in the same period last year.   Net sales for the second
quarter of 2000 were $73.2 million compared with net sales of $75.3 million for 
the same period in 1999.

    The Company attributed its slightly higher profitability to greater
operating efficiencies from its Emergency Vehicle Team (EVTeam) segment,
which builds ambulances and fire trucks.  This was offset by a $771,000 loss
at Spartan’s school bus segment, Carpenter Industries, during the quarter.

    “While our sales are not where we would like them to be, Spartan Motors 
was able to post slightly better earnings due to our focus on manufacturing
efficiency and continuous improvement,” said John Sztykiel, president and
chief operating officer of Spartan Motors.

    Spartan Motors also posted improved results for the six months ended June
30, 2000.  Net earnings rose 21.9 percent to $2.983 million, or $0.25 per
diluted share, compared with $2.447 million, or $0.20 per diluted share, in
the first six months of 1999.  Net sales also improved in the current
six-month period, increasing 4.6 percent to $157.9 million, versus $150.9
million in the same period in 1999.

    The Company attributed the second-quarter sales decline to softer sales of
its recreational vehicle chassis.

    “Softness in the RV market is an opportunity to pick up market share,”
Sztykiel said. “Spartan has three new chassis models coming in the second
half of 2000 that will fill consumer demand for cost-effective, entry-level
diesel pusher motorhomes.”

    Sales of fire truck chassis were up 14.2 percent for the quarter while parts
sales increased 23.8 percent.

    “We have more than 30,000 vehicles equipped with Spartan chassis on the 
road now,” Sztykiel said. “We are expanding our focus to look at the untapped
potential that parts and service offer.  We have already started to see some of 
the results of this emphasis.”

    Spartan Motors’ EVTeam posted a 51 percent increase in earnings on a 1.6
percent decline in sales for the second quarter.  Coming off record sales in
the first quarter of 2000, the EVTeam continued to grab market attention by
introducing new models and adding new dealers during the second quarter.

    “Sales of our ambulances and fire trucks remain good,” Sztykiel said.  “In
particular, Road Rescue had a record June, receiving more than 50 orders.
We expect further improvements.  All three of our EVTeam companies continue
to establish themselves as cost-effective custom manufacturers in a
marketplace that looks increasingly for innovative and quality products.”

    Spartan said its Carpenter school bus segment posted a second quarter
operating loss that was its smallest to date, though larger than projected.

    “We continue to make progress at our Carpenter operations, but their results
are not where they should be,” Sztykiel said.  “ Effective immediately, Tony
Sommer has stepped down as chairman of Carpenter and a new replacement will
be named shortly.”

    Spartan Motors reported that operating income fell slightly during the
quarter, from 3.4 percent of sales in the year-ago period to 3.1 percent of
sales in the 2000 quarter.  Gross margin improved from 13 percent in the
second quarter of 1999 to 13.5 percent during the second quarter of 2000.

    Spartan also reported that it has repurchased 1.25 million shares of its
common stock to date as part of its share buyback plan.  The board of
directors authorized the Company to repurchase up to 2 million shares in
November 1999, reflecting its confidence in the future of Spartan Motors.

    Spartan Motors, Inc. is a leading developer and manufacturer of custom 
chassis for fire trucks, recreational vehicles, transit buses, school buses 
and other specialty vehicles.  The Company also owns fire and rescue vehicle 
manufacturers Luverne Fire Apparatus, Quality Manufacturing and Road Rescue, Inc. 
and a majority interest in school bus body manufacturer Carpenter Industries, 
Inc.