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Spartan Motors
1541 Reynolds Rd. Charlotte, MI 48813 P: 517.543.6400
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Spartan Chassis Receives $53 Million Subcontract Orders from BAE Systems for Production of MRAP Vehicles

CHARLOTTE, Mich., Aug. 16 /PRNewswire-FirstCall/ — Spartan Chassis, Inc.,
a subsidiary of Spartan Motors, Inc. (Nasdaq: SPAR), today announced it has
been awarded new subcontract orders worth approximately $53 million from
defense contractor BAE Systems to support the production of advanced tactical
vehicles under the Mine Resistant Ambush Protected, or MRAP, program.

Under the subcontracts, the Mich.-based custom chassis manufacturer will
supply and integrate key chassis components for BAE Systems’ RG-33 MRAP
military vehicles. The vehicles are scheduled to be completed in 2007 and are
slated for use by the U.S. military. This award marks the third major MRAP-
related subcontract in less than a month for Spartan Chassis, spanning three
different defense contractor OEMs.

“Spartan Chassis continues to prove its expertise and reliability in the
military business, and this contract and our expanding relationship with BAE
Systems is further evidence of this,” said Richard Schalter, president of
Spartan Chassis. “The military has made the MRAP program its highest
priority, and we are honored to be working alongside BAE to respond to the
need for these life-saving and highly survivable vehicles.”

Spartan Chassis said production support for the vehicles will be completed
at its newly expanded military chassis facility near Lansing, Mich. 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.

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.

About BAE Systems:

BAE Systems is the premier global defense and aerospace company delivering
a full range of products and services for air, land and naval forces, as well
as advanced electronics, information technology solutions and customer support
services. BAE Systems, with 96,000 employees worldwide, had 2006 sales that
exceeded $27 billion.

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 Annual
Report on 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, Spartan Chassis, Inc., +1-517-543-6400 ext.
3111, or Ryan McGrath, or Jeff Lambert, Lambert, Edwards & Associates, for
Spartan Chassis, Inc., +1-616-233-0500