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Spartan Motors Announces Board Transition

9 January 2001

Spartan Motors Announces Board Transition

      Chairman and CEO George Sztykiel Will Not Seek Re-election in 2002

    CHARLOTTE, Mich., Jan. 9 Spartan Motors, Inc.
announced today that founder and chairman George Sztykiel will
not run for re-election to his board seat in 2002.
    The board of directors for the Charlotte, Mich.-based manufacturer of
custom chassis and emergency vehicles said it has commenced development of a
long-range operating plan, which would include growth strategies as well as
recommendations for a successor to Sztykiel, 71.  A special board committee
will be developed to facilitate this process.
    "We enter 2001 with a good deal of momentum, and we must do everything in
our power to capitalize on this," said Sztykiel, who also serves as chief
executive officer of Spartan Motors.  "With the decision to halt funding for
the school bus operations, Carpenter Industries, we have closed a difficult
chapter in our corporate history.  It is now time to look ahead and build on
the successes we have achieved with our core product lines: custom chassis and
emergency vehicles.
    "I am confident that the board committee will set a clear transition and
growth plan to help Spartan Motors continue to set the pace in the custom
vehicle market.  We are especially pleased to have new board member Kim Korth,
who was added to the Spartan board for her tremendous strategic skills and
automotive experience, involved in this process."
    Spartan Motors got its start 25 years ago when George Sztykiel and three
colleagues began building fire truck chassis and cabs in a small garage in
Charlotte.  Spartan focused on fire trucks for the next decade, using custom
chassis to differentiate itself from its mass-produced competition.  Looking
for ways to leverage its engineering expertise to related markets, the Company
began building custom chassis for Class A motorhomes in 1986, followed by
buses and other heavy-duty specialty vehicles.
    The Company now employs nearly 800 associates in Michigan, Alabama,
Minnesota and South Dakota, and sales of its RV chassis account for more than
half of its annual revenue.  Despite a downturn in the market for Class A
sales during 2000, Spartan Motors Chassis reported a 23 percent return on
operating capital through the third quarter of 2000.  Sales of fire trucks and
ambulances through its emergency vehicle group (Quality Manufacturing, Luverne
Fire Apparatus and Road Rescue, Inc.) also posted record increases for the
year, fueled by increased demand for Spartan's custom products.
    "We must now put in place the right operating structure to meet the
current market challenges," Sztykiel said.  "I believe the time is right to
pass the torch to a leadership team who will build on Spartan's strong
reputation and track record."
    Spartan Motors, Inc. (http://www.spartanmotors.com ) is a leading developer and
manufacturer of custom chassis for recreational vehicles, fire trucks,
ambulances and other specialty vehicles.  The Company also owns fire and
rescue vehicle manufacturers Luverne Fire Apparatus, Quality Manufacturing and
Road Rescue, Inc.