Spartan Motors Reports Earnings

The following is a press release from Spartan Motors.  Please give Mary Ann
Sabo a call at 616-233-0500 if you have any questions.  Thanks,

Ryan McGrath
Associate
Lambert, Edwards & Associates
www.lambert-edwards.com


Spartan Motors Reports Strong Operational Improvements in First Quarter

Manufacturer Exceeds Analyst Earnings Estimates for Second Straight Quarter 

CHARLOTTE, Michigan, April 26, 2001 - Buoyed by strong operational
improvements in its core chassis business, Spartan Motors, Inc.
today announced results for the first quarter ended March 31, 2001.

Despite softer sales of its custom RV platforms, the Charlotte, Mich.-based
manufacturer reported net earnings of $1.5 million, or $0.14 per share, for
the first quarter of 2001, compared with net earnings of $2.0 million, or
$0.16 per share, for the first quarter of 2000.  Spartan Motors exceeded the
earnings estimate of $0.09 per share from Red Chip Review - the second
consecutive quarter the Company has surpassed the street estimate.

Spartan reported net sales of $58.7 million for the just-completed quarter,
compared with net sales of $77.4 million for the same period in 2000.  The
decline reflects continued softness in the market for recreational vehicle
platforms, offset partially by an 11 percent increase in sales of fire truck
chassis.

"Despite a tough sales environment, we were able to maintain our earnings
momentum and continue our margin improvements," said John Sztykiel,
president and chief operating officer of Spartan Motors.  "We attribute this
performance to the operational improvements in all our subsidiary
operations.

"We continue to benefit from measures put in place over the past 18 months
that allow us to operate a leaner and more efficient organization, as
evidenced by improved gross margins and lower operating expenses."

During the first quarter, Spartan Motors reported a gross margin of 15.6
percent, up from 14.8 percent during the same period in 2000.  The Company
said increased focus on cost management helped it reduce operating expenses
6.3 percent, compared with the prior-year first quarter, despite the sales
softness.

Spartan Motors said its efforts to increase productivity and manage costs
generated strong cash flow from operations.  The Company reported $9.6
million in cash flow from continuing operations for the first quarter of
2001, up from $7.3 million in 2000.  Focused inventory management helped
Spartan improve its cash conversion cycle from 71.8 days in 2000 to 66.4
days in the first quarter of 2001.  The Company said it paid down $8.6
million in long-term debt in the first quarter of 2001.

"As with others in the RV industry, we expected to be challenged by softer
sales during the first half of 2001," Sztykiel said.  "Our focus on
operational improvements, through programs such as Spartan Profit And Return
(SPAR), has helped us weather this environment.  We could see sales picking
up during the second half of the year, and we will continue to reduce
operating expenses in order to maintain a solid bottom line."

The first quarter of 2001 marked Spartan Motors Chassis first full quarter
under SPAR, a value-added financial, compensation and operating model.  SPAR
requires a return on investment over and above the cost of capital, and
serves as the framework for evaluating all business initiatives.  

"These financial improvements demonstrate our commitment to increasing our
bottom line," said Richard Schalter, chief financial officer and executive
vice president.  "We are pleased with the progress we have made, and look
forward to making additional improvements in the quarters ahead."  

As a result of its stronger operations focus and higher sales of fire truck
chassis, Spartan Motors Chassis reported that its gross margin was 16.1 for
the just-completed quarter, compared with 14.8 percent during the year-ago
period.  

"We are pleased with the improved sales of our fire truck chassis, and
expect that momentum will continue in the subsequent quarters," Sztykiel
said.  "As more apparatus manufacturers and fire departments recognize the
benefit of custom chassis, we continue to take market share away from
commercially built products."

Schalter said:  "While sales of our RV platforms have softened, we feel the
Federal Reserve's lowering of interest rates will encourage consumer
spending.  The RV lifestyle remains popular, and consumers are continuing to
buy new motorhomes - they are looking for products that allow them to fully
enjoy their time on the road."

The Emergency Vehicle Team reported a sales increase of 4.3 percent during
the first quarter of 2001, fueled by stronger sales of its custom fire
trucks and ambulances.  Luverne showed the strongest growth of the three
subsidiaries, boosted by $7 million in orders for new fire trucks from fire
departments in Chicago, Cleveland, Cincinnati, Ohio, and Tulsa, Okla.

"It is great to see large cities look to Luverne for their premium fire
trucks," said Jeff Lautt, president of Luverne Fire Apparatus.

"We continue to improve the market penetration of our custom emergency
vehicles as municipalities and other purchasing agencies continue to
recognize the benefits of buying made-to-order products," Sztykiel said.
"Orders were higher during the first quarter of 2001, and the EVTeam enjoys
a strong backlog.  We are working to translate some of the operational
improvements we have made in our chassis business to our EVTeam
subsidiaries, so that their contributions will make a bigger impact on our
bottom line in the second half of 2001."

"Effective in June, we will begin implementing a coordinated procurement
process between all four business units.  Over time, we expect to see
significant reductions in costs, as we average the effective purchasing
strengths of all four companies.  While we are focused on growing sales and
market penetration, we are just as focused on improving our corporate
operational effectiveness."

Spartan Motors, Inc. (www.spartanmotors.com) is a leading developer and
manufacturer of custom platforms for recreational vehicles, fire trucks,
ambulances and other specialty vehicles.  The Company also owns fire and
rescue vehicle manufacturers Luverne Fire Apparatus, Quality Manufacturing
and Road Rescue, Inc. 

The statements contained in this news release include certain predictions
and projections that may be considered forward-looking statements by the
securities laws.  These statements involve a number of risks and
uncertainties, including but not limited to economic, competitive,
governmental and technological factors affecting the Company's operations,
markets, products, services and prices, and actual results may differ
materially. 

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