Spartan Motors Teams With Winnebago Industries

16 August 1999
Spartan Motors Teams With Winnebago Industries
            Emphasizes Optimism Toward Motorhome Market Potential

    CHARLOTTE, Mich., Aug. 16 -- Spartan Motors, Inc.
, a leading manufacturer of custom chassis, today announced an
agreement to supply chassis to Forest City, Iowa-based Winnebago Industries,
Inc. for the recreational vehicle maker's Ultimate Freedom Class A
model motorhomes.
    Charlotte, Mich.-based Spartan Motors said the agreement to supply its
Mountain Master brand chassis to Winnebago Industries is its first order in
four years from this leading RV maker.
    "We are extremely pleased to be joining forces with Winnebago Industries
and their innovative product team," said John Sztykiel, Spartan Motors
president and chief operating officer.  "This partnership has been a measured
and comprehensive process to ensure the end result will be high performance,
high quality, customer driven products.  We look forward to supplying
Winnebago Industries and building on this relationship over time."
    Winnebago brand motorhomes were the top selling Class A brand in 1998,
according to Grand Rapids, Mich.-based research firm Statistical Surveys, Inc.
Winnebago's Class A models currently include the Brave, Adventurer and
Chieftain models, which are sold through the company's network of full-service
dealers throughout the U.S.
    "Winnebago Industries has the right products for today's RV consumer, and
we are confident that Spartan Motors will be a good partner to help us
maximize the market potential," Winnebago Industries Chairman, Chief Executive
Officer and President Bruce Hertzke said.  "The Winnebago brand is the
established leader in the Class A motorhome market, which continues to be one
of the fastest-growing segments of the industry.  We expect to continue to
build on our success and stay firmly planted at the top of this market."
    Jim Jaskoviak, Winnebago Industries vice president of sales and marketing,
added: "We are optimistic that Winnebago's product development, design and
production expertise, coupled with the performance of the Spartan chassis,
will generate increased demand among the ever-growing pool of RV consumers."
    According to demographic statistics, 17 million more people than the
historical average will retire over the next three years; 78 million more over
the next 15 years.  The wealth created this decade by the financial markets,
coupled with strong consumer confidence, low fuel prices and stable interest
rates are also driving optimism for the future of the RV market.  Spartan
Motors said evidence of this trend can be seen in the strong buying activity
in the RV market through the first half of 1999, and the recent commitment by
members of the industry's leading trade association, RVIA, to spend
$38 million over the next three years on promotional and advertising programs
to support the RV lifestyle.
    Roger Burrows, Spartan Motors vice president of sales and marketing,
commented: "Spartan is putting more effort and resources toward the RV market
to ensure we capitalize on the tremendous growth opportunity this industry
presents.  Yet our primary focus remains on delivering superior quality and
customer service to our OEM and end-user customers.  Spartan's renewed
relationship with Winnebago Industries is a direct result of this focus."
    Winnebago Industries, Inc. is a leading manufacturer of motorhomes, self-
contained recreation vehicles used primarily in leisure travel and outdoor
recreation activities.  Other products manufactured by the Company consist
principally of a variety of component products for other manufacturers.  The
Company builds quality products with state-of-the-art computer-aided design
and manufacturing systems on automotive-styled assembly lines.  These products
conform to what the Company believes to be the most rigorous testing in the
recreation vehicle industry.  The Company's common stock is traded on the New
York, Chicago and Pacific Stock Exchanges under the symbol WGO.  Options for
the Company's common stock are traded on the Chicago Board Options Exchange.
Winnebago Industries is online at http://www.winnebagoind.com
    Spartan Motors, Inc. (http://www.spartanmotors.com ) is the leading manufacturer
of diesel-powered, custom-built chassis for the Class A motorhome market.  The
Company also manufactures chassis for fire trucks, transit buses, school buses
and other specialty vehicles.  Spartan owns three companies that manufacture
emergency vehicles -- Luverne Fire Apparatus, Quality Manufacturing and Road
Rescue -- and 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.