Sparta Commercial Services Obtains Secured Senior Credit Facility with New World Lease Funding

NEW YORK--July 25, 2005--Sparta Commercial Services, Inc. (OTCBB: SRCO), an Internet-based sales finance and leasing company dedicated exclusively to the powersports industry, announced today that it has obtained a secured senior credit facility with New World Lease Funding, LLC. On an offering basis, subject to the performance of Sparta's portfolio, the New World facility provides Sparta an open-ended, flexible funding source for the origination of finance receivables.

Anthony L. Havens, Sparta's CEO, commented, "In combination with the recent closing of our $3 million private placement, we have put into place key financial building blocks to support the roll-out of our leasing and financing programs to the powersports industry. The New World facility provides Sparta with a competitive cost of funds, enabling us to accelerate the origination of finance receivables via our proprietary point of sale iPLUS(TM) (Internet Purchasing Leasing Underwriting Servicing) web-based origination platform."

Mr. Havens added, "We have a positive, long-term relationship with the principals of New World and are pleased they have shown confidence in our business model and our ability to capitalize on the underserved powersports industry financing market."

About New World Lease Funding:

New World Lease Funding, LLC, (www.nwlf.net) based in Lake Success, NY, provides recourse financing to independent leasing companies and dealers for the acquisition of general and special purpose commercial vehicles as well as fleet, highline and other vehicles.

About Sparta Commercial Services:

Sparta Commercial Services, Inc. (www.spartacommercial.com) is an Internet-based acceptance (sales finance) and leasing company dedicated exclusively to the powersports industry, concentrating on motorcycles over 600cc, 4-stroke all-terrain vehicles, and select scooters through private label programs for manufacturers' distributors. Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services including GAP coverage and vehicle service contracts.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today, and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, amount of, obtaining and satisfying terms of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.