Spartan Motors, Inc. Announces Dividend

The following is news regarding Spartan Motors, Inc. .  If you
have any questions regarding this news release, please contact Jeff Lambert
or Ben Buursma at 616.233.0500 or mail@lambert-edwards.com
<mailto:mail@lambert-edwards.com> .  Thank you for your interest in Spartan
Motors.
 

Spartan Motors Announces Second Special Cash Dividend of 2002<?xml:namespace
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Board also announces intention to pay regular dividend beginning in 2003


 

CHARLOTTE, Michigan, October 8, 2002 - Spartan Motors, Inc.
today announced its board of directors has approved a special cash dividend
of $0.06 per share on the Company's common stock.  

 

The special dividend, the second issued by the Company this year, is payable
on November 25, 2002 to shareholders of record at the close of business on
October 25, 2002.  

 

The Charlotte, Mich.-based manufacturer of custom motor home chassis, fire
truck chassis and emergency vehicles also paid a special dividend of $0.10
per share in June 2002.  Spartan Motors has boosted Company-issued dividends
in 2002 to $0.16 per share, a 129 percent increase from last year's special
cash dividend of $0.07 per share.  Spartan Motors has paid a special cash
dividend in each of the past 14 years.

 

Spartan Motors also announced that its board of directors intends to
implement a regular dividend, to be paid twice a year, beginning in the
second quarter of 2003.  Spartan Motors plans to set the payout rate and
announce the record/issue dates for the regular dividend in early 2003.   

 

"Spartan's performance over the last two years has enabled us to eliminate
long-term debt, improve operations and quality, and put the Company in a
strong position for continued growth," said John Sztykiel, chief executive
officer of Spartan Motors.  "The board's decision to increase distributions
to shareholders reflects its confidence in the future, as well as the
continued commitment to provide substantive value to shareholders. 

 

"We remain optimistic about the balance of 2002, and continue to focus on
generating income and building long-term value.  We are confident our core
markets will grow over the next decade, given demographic trends and
municipal needs in emergency-rescue.  We intend to outpace the growth in
these markets and build our market share by sharpening our focus on customer
service and stepping up our development of custom vehicles in order to
become the most desired brand and the lowest total cost producer in our
market niches."

 

About Spartan Motors, Inc.

Spartan Motors, Inc. (www.spartanmotors.com) is a leading developer and
manufacturer of custom chassis for motorhomes, fire trucks, ambulances and
other specialty vehicles.  The Company also owns three fire and rescue
vehicle manufacturers, Luverne Fire Apparatus and Quality Manufacturing, and
ambulance maker 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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CONTACT:  John Sztykiel, CEO

Spartan Motors, Inc.  (517) 543-6400

or

Jeff Lambert, Ben Buursma (mail@lambert-edwards.com)

Lambert, Edwards & Associates, Inc.  (616) 233-0500