Press release from Spartan Motors

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

FOR IMMEDIATE RELEASE

Spartan Motors Posts Sharply Higher Earnings, Increased Sales for Third
Quarter of 2001

CHARLOTTE, Michigan, October 25, 2001 - Spartan Motors, Inc.
continued its trend of improved performance, today posting sharply higher
earnings and increased sales for the quarter ended Sept. 30, 2001.  

The Charlotte, Mich.-based manufacturer of custom chassis and emergency
vehicles reported net earnings grew to $1.6 million, or $0.15 per share, on
net sales of $55.8 million for the third quarter of 2001, compared with a
net loss of $10.0 million, or $0.88 per share, on net sales of $53.0 million
for the same period last year.  The 2000 results include a loss of $8.2
million related to discontinued operations. 

On a continuing operations basis, Spartan Motors reversed a year-ago
quarterly loss of $1.7 million, reporting a $3.3 million improvement in
earnings from continuing operations versus the 2000 period. 
 
The Company attributed the positive swing to higher sales and improved
margins at its custom chassis and emergency vehicle units, as well as the
continued focus on its cost-structure and lean operations.   

"We are very pleased with our results, which underscore the operational
progress we continue to achieve," said John Sztykiel, president and chief
operating officer of Spartan Motors.  "Our focus on operational
improvements, in combination with our emphasis on innovative new products,
continues to drive our results.

"Our adaptation of lean manufacturing principles has allowed us to increase
our productivity, improve our efficiency and reduce inventory costs.  For
example, we have reduced the production cycle for our fire truck chassis
from 21 days to 15 days over the past 18 months."

Consolidated sales increased 5.2 percent over the third quarter of 2000,
spurred by strong double-digit growth in the Company's Emergency Vehicle
Team (EVTeam) subsidiaries and a 13.4 percent increase in sales of motorhome
chassis.  

The increase in sales helped Spartan Motors more than double its gross
profit to $9.4 million versus the year-ago third quarter, reflecting gains
in productivity.  As a result, gross profit margin improved to 16.8 percent,
compared with 7.3 percent in the third-quarter of 2000.

The improvements in sales and gross margin helped Spartan Motors post a $5.2
million improvement in operating income versus last year's third-quarter
loss.  Operating income rose to $3.0 million in the third quarter of 2001,
compared with an operating loss of $2.2 million in the same period last
year.  

Spartan said its gains in sales of motorhome chassis outpaced growth in the
national RV industry.  Shipments of Class A motorhomes increased 3.3 percent
during August, one of the only sectors of recreational vehicles to show
stronger consumer interest.  Diesel-pusher motorhomes, which continue to
gain market share, now account for 42 percent of all Class A sales.  Spartan
Motors began shipping its custom diesel chassis for several new OEM
products, including National RV's Marlin, during the third quarter.  

"Sales of Class A diesel-pusher motorhomes remain more recession-resistant
than other segments of the RV market," Sztykiel explained.  "We are prepared
to deal with market conditions, which should remain challenging over the
next six months.  The events of September 11 have affected our markets, but
we are on track to meet or exceed our street estimate for 2001.  The
continued growth in the number of Baby Boomers entering the RV lifestyle, in
combination with cuts in interest rates, remains in our favor.

"We plan to unveil several new innovations during the upcoming RV industry
show in November.  We will also showcase some unique marketing initiatives
that are designed to help us increase our market share.  Unlike other
manufacturers who are cutting back, Spartan Motors will be ready with
innovative products and features as new RV customers step into the market."

The EVTeam posted its fourth consecutive quarter of profitability,
highlighted by improvements in sales, gross margin and backlog.  Sztykiel
said all three EVTeam companies - Quality Manufacturing, Road Rescue and
Luverne Fire Apparatus - received excellent customer response to the new
vehicles introduced during the International Association of Fire Chiefs show
in New Orleans in August.

He noted that the Senate has approved a six-fold increase in grants to fire
departments under the Firefighter Investment and Response Enhancement (FIRE)
Act.  If passed, the amendment will allocate $600 million for spending on
new fire equipment in fiscal 2002, $800 million the following year and $1
billion in fiscal 2004.

"Now more than ever, the nation's attention is focused on the invaluable
service provided by our nation's firefighters," Sztykiel said.  "This bill
should allow fire departments across the country to update their equipment
needs and ensure they are adequately prepared when duty calls."

For the nine months ended Sept. 30, 2001, Spartan posted net earnings of
$4.3 million, or $0.41 per share, compared with a net loss of $7.0 million,
or $0.59 per share, in the first nine months of 2000.  The Company reported
net sales of $173.0 million in the current nine-month period, compared with
net sales of $194.1 million in the same period in 2000.

Spartan Motors reported that gross margin for the first nine months of 2001
was 15.9 percent, up from 12.9 percent during the year-ago period.  Spartan
also reduced its inventory $2.1 million during the first nine months of
2001.

The Company also generated $17.5 million in cash flow from continuing
operations during the first nine months of 2001, reflecting a focus on
inventory reduction and an expedited tax refund from a discontinued
operation write-off.  Spartan Motors said improved cash flow has enabled the
Company to reduce its long-term debt by $13.0 million in the first nine
months of 2001.  On a consolidated basis, the Company expects to post a
return on capital just below 20 percent.
 
"Our focus on efficient operations and the implementation of our new
value-added financial model, Spartan Profit And Return, have led to
significant operating improvements and strengthened our balance sheet this
year," said Richard Schalter, chief financial officer and executive vice
president.  "With the sectors we serve showing some signs of growth, we are
well-positioned for the future."

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. 

# # #

CONTACT:  John Gaedert
Spartan Motors, Inc.  (517) 543-6400
or
Jeff Lambert, Mary Ann Sabo (mail@lambert-edwards.com)
Lambert, Edwards & Associates, Inc.  (616) 233-0500