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Spartan Motors Receives New Orders

22 October 1998

Spartan Motors Receives Two Bus Contracts and Orders for Emergency Vehicles

    CHARLOTTE, Mich.--Oct. 22, 1998--Spartan Motors, Inc. today announced $18 million in new orders for its core chassis business and its three subsidiaries that comprise the Emergency Vehicle Team: Luverne Fire Apparatus, Quality Manufacturing and Road Rescue Ambulance.
    The Charlotte, Mich.-based manufacturer of custom chassis received a contract to supply 80 transit bus chassis to Metrotrans Corporation , a bus body manufacturer, for a contract with the Southeastern Pennsylvania Transit Authority (SEPTA). The Company also announced a contract to provide 75 tour bus platforms for the Irizar Tour Bus, which is to be distributed by Metrotrans Corporation. Delivery will occur in the first half of 1999 for both contracts, which account for more than $12 million of the new orders.
    The Emergency Vehicle Team generated the remaining $6 million in incremental revenue, based on orders received for 36 fire trucks and eight ambulances during its first annual dealer conference, held September 30 - October 3, 1998 in Orlando, Fla. During the conference, more than 200 dealers and factory representatives gained an overview of the new products available from Luverne Fire Apparatus, Quality Manufacturing and Road Rescue Ambulance.
    "We expect bus chassis to continue their growth into 1999 and these two orders are an excellent foundation," said John Sztykiel, Spartan Motors President and Chief Operating Officer. "We remain committed to profitable growth in all of our niches as we continue to diversify our business."
    Sztykiel added, "In addition to the growth attained in our core chassis business, our Emergency Vehicle Team also contributed, a direct result of their first annual dealer meeting. The new emergency vehicles were well received by our dealers at the recent conference, which gave Luverne Fire Apparatus, Quality Manufacturing and Road Rescue Ambulance an opportunity to showcase their products."
    Luverne Fire Apparatus, based in Brandon, S.D., introduced the LEAR, a new fire apparatus product with an all extruded aluminum body. "We added an impressive number of features to the LEAR to make it a first class product, complementing the fire apparatus developed by Quality Manufacturing," said Bill Marketon, President of Luverne. "The launch of the new LEAR Series enables our dealers to do business in the extruded aluminum apparatus market, which represents approximately 40 percent of vehicles sold. Without the LEAR, they could not compete in that part of the market."
    In addition to the LEAR, Luverne displayed the new TSS, a tubular stainless steel fire apparatus body that combines durability with an affordable price. "The dealers liked what they saw, as evidenced by the orders taken at the conference. Also confirming the marketability of this product is the fact that Dekalb County, Ga. recently ordered eight units, all on Spartan chassis," said Marketon.
    Quality Manufacturing, based in Talladega, Ala., showcased its Americana fire apparatus product. "Before building a customized Americana apparatus, we conduct a pre-construction planning conference to identify the precise specifications requested by end users," said Gene Hall, President of Quality Manufacturing. "The result is a tailored product with the highest quality and construction. Quality Manufacturing has experienced growth of 30 percent over the past three years as a result of providing a personal touch. We expect that to continue into 1999."
    Road Rescue Ambulance, the third member of the Emergency Vehicle Team, introduced a new ambulance to the dealers in Orlando. Built on Spartan Motors' TR-1 custom chassis, this premium ambulance includes a water pump option, creating a dual-purpose vehicle for fire-related emergency runs.
    "Ambulances are being called on to do more, yet drive and handle better. The Spartan TR-1 chassis allows us to do all that as it can carry more weight. Performance is improved since it has more horsepower than a typical ambulance, coupled with air suspension for the front and rear," said Norbert Conzemius, President of Road Rescue, which is located in St. Paul, Minn.
    "The dealers were impressed with not only the products but also the plans of the Emergency Vehicle Team and this bodes well for 1999," said Sztykiel.
    Luverne Fire Apparatus, Quality Manufacturing, Road Rescue Ambulance and Spartan Motors Chassis are fully-owned subsidiaries of Spartan Motors, Inc., a leading manufacturer of custom chassis for the motorhome, fire truck, transit bus, school bus, step van and other specialty industries. The Company also owns an equity interest in Richmond, Ind.-based Carpenter Industries, which is a leading manufacturer of school buses.
    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.