Spartan Motors Grows Second-Quarter Net Earnings 28 Percent

CHARLOTTE, Michigan, July 26, 2001 - Spartan Motors, Inc.
today reported a 28 percent increase in net earnings for the second quarter
ended June 30, 2001.

The Charlotte, Mich.-based manufacturer of custom chassis and emergency
vehicles said that net earnings grew to $1.3 million, or $0.12 per diluted
share, for the second quarter of 2001, compared with net earnings of $1.0
million, or $0.09 per diluted share, for the same period last year.  Spartan
Motors exceeded the street estimate for the third consecutive quarter.

The Company reported net sales of $58.5 million for the second quarter of
2001, compared with net sales of $63.7 million for the year-ago period.
Increased sales of Spartan's emergency vehicles and fire truck chassis were
offset by continued softness in the market for recreational vehicle
platforms.

"We are pleased that the initiatives launched over the past two years
continue to translate into earnings growth," said John Sztykiel, president
and chief operating officer of Spartan Motors.  "Strong operational
improvements have allowed us to grow our bottom line during a time when
others in our industry are posting lower earnings or even losses.

"By refocusing on our core product lines, we eliminated a drag on our
earnings.  We are committed to delivering innovative products for all our
customers - and solid results for all our stakeholders.  As a result, we
have begun to attract renewed interest from investors as evidenced by our
stock price and trading volume.  In fact, a Business Week analysis places
Spartan stock among the top micro-cap performers for the first six months of
2001."

Spartan Motors improved its gross margin, raising it from 15.1 percent in
the second quarter of 2000 to 15.4 percent in the second quarter of 2001.
The Company also improved its operating income as a percentage of sales from
4.1 percent during the year-ago second quarter to 4.5 percent in the second
quarter of 2001.

The Company reported $7.6 million in cash flow from continuing operations
for the second quarter of 2001, up from $2.7 million cash used in continuing
operations during the same period in 2000.  Spartan Motors also paid down
$2.6 million in debt during the 2001 quarter.  

For the six months ended June 30, 2001, Spartan posted net earnings of $2.8
million, or $0.26 per diluted share, compared with net earnings of $3.0
million, or $0.25 per diluted share, in the first six months of 2000.  The
Company reported net sales of $117.2 million in the current six-month
period, compared with net sales of $141.1 million in the same period in
2000.

Spartan Motors reported that gross margin for the first six months of 2001
was 15.5 percent, up from 14.9 percent during the year-ago period.  The
Company also generated $17.2 million in cash flow from continuing operations
during the first six months of 2001, up from $4.6 million during the
year-ago period.  For the first six months of 2001, Spartan has paid down
$11.2 million in debt.

"The shift to our new value-added financial model, Spartan Profit and
Return, has allowed us to make substantial improvements in our operations
which flowed through to our income statement and balance sheet during the
first six months of 2001," said Richard Schalter, chief financial officer
and executive vice president.  "Despite a challenging RV market, we have
been able to increase our productivity while better managing our costs so
that we can operate as a more efficient organization.  The result is strong
cash flow, reduced debt and a company well positioned for top-line and
bottom-line growth."

Sales of Spartan's custom fire truck chassis increased during the quarter,
fueled by new customers, strong orders and the continuing shift from
commercial to custom products.  Sales of Spartan's custom RV platforms were
lower during the second quarter due to softness in the market for
recreational vehicles.

"While we see positive signs that the economy is beginning to improve, the
near-term market could prove challenging," Sztykiel said.  "Our platforms
will be under eight new motorhome models this fall, which is testament to
the growing recognition of the Spartan brand among OEMs, and that should
help us in a challenging market.  As the market rebounds, all that we have
been able to accomplish under these challenging conditions will only enhance
our top and bottom lines. 

"We are a technology-driven company that has committed nearly 10 percent of
our personnel to engineering.  By providing innovative products to our
customers, we allow them to significantly differentiate their products from
those of their competitors.  Over the next year, the market will see some
very innovative products being introduced by all the subsidiaries of Spartan
Motors that add value through the process of product differentiation." 

The Emergency Vehicle Team reported a sales increase of 22.8 percent during
the second quarter of 2001, fueled by stronger sales of its custom fire
trucks.  

"The EVTeam continues to enjoy strong bid activity and solid backlog,"
Sztykiel said. "While we will continue to focus on sales, we have also begun
the process of transitioning some of the operational improvements made in
our chassis business to our EVTeam subsidiaries.  It is our goal to grow the
bottom-line profitability of our EVTeam companies in concert with their
top-line growth."

Sztykiel noted that the Company has been more aggressive with its investor
relations initiatives during the first half.  Company executives met with
analysts and portfolio managers in a number of key financial centers, and
have additional trips scheduled to meet with the financial community during
the second half of the year.  

The Company has also been selected by Business Week for inclusion in an
upcoming edition that showcases the top-performing micro cap stocks during
the first six months of 2001.  Spartan's stock has grown more than 220
percent, putting it among the top four percent of all 6,000 micro cap
stocks.

"Spartan has an excellent story to tell and Wall Street is once again
beginning to look at our company," Sztykiel said. "As I said in the annual
report, credibility is earned through results.  For the past three quarters,
we have delivered results, despite challenging market conditions.  Our
second quarter 2001 results are the continuation of a very positive trend,
which we are focused on continuing."

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.