CHARLOTTE, Mich., May 10 /PRNewswire-FirstCall/ — Spartan Chassis, Inc.,
a subsidiary of Spartan Motors, Inc. (Nasdaq: SPAR), today announced it has
received subcontract orders from two major defense manufacturers totaling
$107.6 million — its two largest specialty-vehicle orders to date.
Spartan Chassis said it has received a $60.0 million order from General
Dynamics Land Systems and a $47.6 million order from Force Protection, Inc.
Spartan Chassis will supply and integrate key chassis components in the
production of advanced tactical vehicles under the Mine Resistant Ambush
Protected, or MRAP, program.
Both orders are scheduled to be completed in 2007 and are slated for use
by U.S. Marines and soldiers fighting in Afghanistan and Iraq. MRAPs are
prized by the military for their V-shaped hulls, raised chassis and improved
armor, which help protect servicemen and women from improvised explosive
devices, or IEDs, mines and other hazards of war.
“This new business is significant in both its magnitude and its validation
of our expertise in automotive integration,” said Richard Schalter, president
of Spartan Chassis. “Over the past two years, we have earned a reputation in
the military market by repeatedly demonstrating that we have the ability to
deliver quality products on time. Spartan Chassis is privileged to be in
service to support our nation’s defense.”
In April 2007, Spartan Chassis announced that it had acquired two
facilities that will be converted to manufacturing plants to meet the strong
growth of its specialty-vehicle product line. The new plants will add a total
of 80,000 square feet to Spartan Chassis and will come on line during the
third quarter of this year.
“These two new contracts validate the investments we have made in growing
our specialty-vehicle segment and the confidence that our customers, along
with our shareholders and our board of directors, have in Spartan Chassis,”
said John Sztykiel, president and CEO of Spartan Motors. “This contract
underscores the strength of our strategic plan, which focuses on the emergency
rescue, recreational vehicle and specialty markets.”
About Spartan Chassis, Inc.
Spartan Chassis, Inc., a subsidiary of Spartan Motors, Inc.
(Nasdaq: SPAR), is a leading developer and manufacturer of custom chassis for
recreational vehicles, fire trucks and specialty vehicles. Spartan Motors,
which also manufactures emergency rescue vehicles under the brand names of
Crimson Fire, Crimson Fire Aerials and Road Rescue, reported sales of $445
million in 2006 and is focused on becoming the premier manufacturer of
specialty vehicles and chassis in North America.
This release contains forward-looking statements, including, without
limitation, statements concerning our business, future plans and objectives
and the performance of our products. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be accurate.
Actual results and future events could differ materially from those
anticipated in such statements. Technical complications may arise that could
prevent the prompt implementation of the plans outlined above. The company
cautions that these forward-looking statements are further qualified by other
factors including, but not limited to, those set forth in the company’s Form
10-K filing and other filings with the United States Securities and Exchange
Commission (available at http://www.sec.gov). Government contracts and
subcontracts typically involve long payment and purchase cycles, competitive
bidding, qualification requirements, delays or changes in funding, extensive
specification development and changes, price negotiations and milestone
requirements. An announced award of a governmental contract is not equivalent
to a finalized executed contract and does not assure that orders will be
issued and filled. Government agencies also often retain some portion of fees
payable upon completion of a project and collection of contract fees may be
delayed for long periods, which can negatively impact both prime contractors
and subcontractors. The company undertakes no obligation to publicly update or
revise any statements in this release, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE Spartan Chassis, Inc.
CONTACT: Karen Hildebrant of Spartan Chassis, Inc., +1-517-543-6400 ext.
3111; or Ryan McGrath or Jeff Lambert of Lambert, Edwards & Associates, Inc.,
+1-616-233-0500, for Spartan Chassis, Inc.
CO: Spartan Chassis, Inc.; General Dynamics Land Systems; Force Protection,
Inc.