Spartan Motors Announces Tentative Carpenter Industries Shareholder Agreement

22 September 1998

Spartan Motors Announces Tentative Carpenter Industries Shareholder Agreement

    CHARLOTTE, Mich.--(AutomotiveWire)--Sept. 22, 1998--Spartan Motors, Inc. (NASDAQ/NMS:SPAR) today announced it reached a tentative agreement on the recapitalization of Carpenter Industries, Inc., establishing Spartan Motors as majority shareholder with Recovery Equity Investors, Inc. as minority shareholder. Dr. Beurt SerVaas/SerVaas, Inc., a third shareholder of Carpenter Industries, will cease to have any ownership and/or involvement with Carpenter.
    "We remain committed to our investment in Carpenter Industries, as it is important to our position in the school bus business," said Spartan Motors Chairman of the Board and Chief Executive Officer George Sztykiel. "Our increased and continued stake in Carpenter assures access to a market of 35,000 school buses, of which 30 percent is Type D/transit style buses. This is the fastest growing segment in the school bus market and utilizes the type of chassis produced by Spartan Motors. A critical factor in this decision is our ability to assume control over the day-to-day operations of Carpenter and our investment."
    "This agreement is contingent upon the approval and agreements of several other parties," said Sztykiel. "We are optimistic about a successful completion of the agreement within the next 10 days. When completed, the efforts of all the parties involved should place Carpenter in a significantly better financial position allowing the opportunity for future growth."
    It was also stated that, pending the results of the agreement, Carpenter operations could resume as early as October 5, 1998.
    Richmond, Ind.-based Carpenter Industries, Inc. is a leading manufacturer of school buses and step vans and its products are sold through a network of approximately 40 dealers.
    Spartan Motors, Inc. is a leading manufacturer of custom chassis for motorhomes, fire trucks, transit buses, school buses, step vans and other specialty vehicles. The Company also owns fire and rescue vehicle manufacturers Luverne Fire Apparatus, Quality Manufacturing and Road Rescue Ambulance, 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, services and prices, and actual results may differ materially.