Spartan Chassis to Build New $14.5 Million Cab & Chassis Production Facility

Record Orders, Highlighted by Best-Ever Month in May for Fire Truck Chassis, Spur Expansion

CHARLOTTE, Mich., June 15 -- Spartan Chassis, Inc., a subsidiary of Spartan Motors, Inc. , will break ground in July 2006 on a new $14.5 million, 102,000-square-foot manufacturing facility in Charlotte, Mich. The new plant will help Spartan meet increasing demand for fire truck chassis and fuel its entry into future specialty product segments, while also freeing up capacity for growth in its recreational vehicle and military chassis businesses.

Spartan Chassis also reported its best month of orders for fire truck chassis in the Company's 30-year history with 188 orders in May 2006. The Charlotte, Mich.-based manufacturer of custom chassis for recreational vehicles, fire trucks and military defense vehicles also reported it is on pace to achieve its third consecutive quarter of increased orders in the second quarter ending June 30, 2006.

"We continue to see order momentum building due in large part to our strategic partnerships with dealers and apparatus builders. As we continue to grow market share for our fire truck chassis, we need the plant capacity and production line efficiency to stay ahead of customer demand, and this new facility gives us just that," said Richard Schalter, president of Spartan Chassis.

The facility, which will begin producing chassis and cabs in May 2007, will feature multiple production lines, new and more efficient paint stations and a layout designed to accommodate lean manufacturing processes. The new plant is also expected to result in staff additions as production ramps up.

"In addition to the increased demand for our existing fire truck chassis, we have several product development initiatives which we expect to debut in 2007 that will require increased cab and chassis production capacity," said John Sztykiel, president and CEO of Spartan Motors. "These product initiatives are based around the military business, as well as future specialty chassis products, illustrating our strategic vision to become North America's premier manufacturer of specialty vehicles and chassis."

Sztykiel concluded: "Spartan Chassis has had excellent performance over the last several quarters and this investment underscores the Board's confidence in these new product initiatives and in Spartan Chassis' capacity to continue to grow shareholder value."

About Spartan Chassis, Inc.:

Spartan Chassis, Inc. (http://www.spartanchassis.com/ ), a subsidiary of Spartan Motors, Inc. , is a leading developer and manufacturer of specialty chassis for recreational vehicles, fire trucks and military defense vehicles. Spartan Motors (http://www.spartanmotors.com/ ), which also manufactures emergency rescue vehicles under the brand names of Crimson Fire, Crimson Fire Aerials and Road Rescue, reported sales of $343.0 million in 2005 and is focused on becoming the premier manufacturer of specialty vehicles and chassis in North America.