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Spartan Motors and Federal Signal Corporation Announce Purchasing Alliance

17 May 1999

Spartan Motors and Federal Signal Corporation Announce Purchasing Alliance

    CHARLOTTE, Mich., May 17 -- Two of the nation's leading
heavy-duty specialty vehicle manufacturers today announced a joint purchasing
initiative aimed at increasing product quality, improving supplier
relationships, and reducing overall costs.
    Spartan Motors, Inc. , which makes custom chassis for the
RV, fire truck and bus markets, and Federal Signal Corporation , a
diversified manufacturer of industrial products and specialized vehicles, said
the alliance should help the two companies increase their overall
competitiveness.  The joint purchasing initiative will impact all cost lines
at the two companies and is expected to benefit all subsidiaries.
    "Spartan Motors and Federal Signal share a common vision that involves
constantly looking for innovative ways to improve our competitiveness, while
maintaining our focus as niche manufacturers," said John Sztykiel, Spartan
Motors president and chief operating officer.  "This purchasing alliance gives
us the opportunity to make marked improvements in our respective cost
structures without sacrificing our independence.  We are confident it will
translate into added value for our individual customers and increased returns
for our shareholders."
    Richard Gibb, Executive Vice President of Federal Signal Corporation, and
President of the Fire Rescue Products Group, added:  "Our expectation with
this purchasing alliance is to generate Best Practice initiatives that can be
applied primarily to our Vehicle Group, but we anticipate some benefit to
other portions of our business.  Component costs are a huge line item at both
Federal Signal and Spartan Motors, and we intend to drive action and
accountability from this joint task force to ensure we maximize our combined
resources and meet the respective strategic goals of both companies."
    Federal Signal Corporation (http://www.federalsignal.com) is a billion dollar
global manufacturer of leading niche products in four operating groups:
safety and signaling products, custom signage, consumable industrial tooling
and emergency and environmental vehicles.  Based in Oak Brook, Ill., Federal
Signal's shares are traded on the New York Stock Exchange under the symbol
FSS.
    Charlotte, Mich.-based Spartan Motors, Inc. (http://www.spartanmotors.com) is a
$255 million manufacturer of diesel-powered, custom-built chassis for fire
trucks, RVs, transit buses, school buses and specialty vehicles.  Spartan
manufactures emergency vehicles and has a stake in school bus manufacturer
Carpenter Industries, 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.