The latest news from Spartan Motors

Following is the latest news from Spartan Motors. Please feel free to call
me if you have any questions.

Thank you for your interest in Spartan Motors.

Jill Ward
Associate
Lambert, Edwards & Associates, Inc.
171 Monroe NW Ste 500
Grand Rapids, MI 49504
Phone 616.233.0500 
Fax 616.233.0600


FOR IMMEDIATE RELEASE

CONTACT: Chuck Drake
Road Rescue, Inc. (800) 328-3804
or
Mary Ann Sabo, Jeff Lambert (mail@lambert-edwards.com)
Lambert, Edwards & Associates, Inc. (616) 233-0500

			Road Rescue to Build $4 Million Plant in South
Carolina 
		Double-Digit Growth in Custom Ambulance Sales Fuels Need for
Expansion

CHARLOTTE, Mich., August 20, 2001 - Road Rescue, Inc. announced plans today
to build a $4 million manufacturing plant in Marion, S.C. that will allow
the ambulance manufacturer to increase capacity and expand its vehicle
offerings.

The St. Paul, Minnesota-based manufacturer, a subsidiary of Spartan Motors,
Inc. , said it expects its new factory will create 120 jobs
over the next five years.  

"This new facility will not only increase capacity and improve quality, it
will complete our product line to dealers with the right cost base," said
Chuck Drake, president of Road Rescue. "The South Carolina location allows
us to expand our geographical presence, and gives us distribution
capabilities in one of the fastest growing markets in the United States.

"We are committed to the Minnesota market, but find ourselves unable to
expand at our current location, which is already running at full capacity.
The new facility will give us the room we need to grow, allow us to shorten
our delivery cycle and expand our distribution reach."

Road Rescue plans to expand an existing facility in Marion, which is located
near Myrtle Beach.  The Company will begin work on the 100,000-square-foot
plant in September 2001, with a target move-in date of January 2002.

"By selecting Marion for its new facility, Road Rescue will have all the
elements it needs to reach the next level of achievement," said South
Carolina Governor Jim Hodges. "We are delighted the Company chose South
Carolina, and look forward to building a positive relationship with Road
Rescue that will last for years to come." 

When completed, the new plant will have more than 90,000 square feet of
manufacturing space where the Company will build custom Type II ambulances,
which are van style ambulances and account for about 28 percent of the
market.  Road Rescue currently has 30 percent market share of Type I and III
premium market.  Production of these vehicles will remain at the St. Paul
headquarters.

"The company has experienced tremendous growth over the past few years, so
this expansion represents the next logical step for Road Rescue," Drake
said. "We plan to use the solid base we have among Type III customers to
launch into the custom end of the Type II market, and will franchise off our
successful platforms. 

Road Rescue looked at several sites before settling on South Carolina, which
has worked aggressively over the past several years to bring new
manufacturing jobs to the state. 

"When we were evaluating locations, we had four main criteria: proximity to
our supplier base, cost and ease of implementation, return on invested
capital and geographical market opportunity," said John Sztykiel, president
and chief operating officer of Spartan Motors.  "Marion met all four of
these criteria.  We do not expect this capital expenditure will affect our
debt-reduction timeline at Spartan, given the operational improvements we
continue to make and the sales growth at Road Rescue and our other Emergency
Vehicle Team subsidiaries."

The Company worked closely with the South Carolina Department of Commerce in
order to finalize plans for the new factory. 

"South Carolina's positive business climate will assist Road Rescue in
maintaining close contact to its supplier base while opening new
opportunities in surrounding markets," said Secretary of Commerce Charles S.
Way. "Road Rescue will soon understand why thousands of other quality
industries also chose a South Carolina address." 
Established in 1976, St. Paul, Minn.-based Road Rescue, Inc.
(www.roadrescue.com) designs and manufactures custom ambulances.  Road
Rescue, which is owned by Spartan Motors Inc., produces five ambulance
models, has 20 dealers in the United States and Canada, and employs more
than 150 people. 
Spartan Motors, Inc. (www.spartanmotors.com) is a leading developer and
manufacturer of custom chassis for fire trucks, ambulances, recreational
vehicles, and other specialty vehicles.  In addition to Road Rescue, the
Company also owns fire and rescue vehicle manufacturers Luverne Fire
Apparatus and Quality Manufacturing.
							
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