New Vehicle Program Will Help Protect New Iraqi Military
from Threat of Explosive Devices
CHARLOTTE, Mich., June 6 /PRNewswire-FirstCall/ — Spartan Chassis, Inc.,
a subsidiary of Spartan Motors, Inc. (Nasdaq: SPAR), today announced it has
secured a role through BAE Systems to supply and integrate key chassis
components and assist in the manufacturing of 378 Iraqi Light Armored
Vehicles. The expected order placed with Spartan Chassis will be worth
approximately $45 million.
The prime procurement contract, worth $180 million, was awarded by the
U.S. Army Tank-automotive and Armaments Command (TACOM) on May 30, 2006, to
BAE Systems. Force Protection, Inc., a Charleston, S.C.-based manufacturer of
ballistic and mine-protected military vehicles and current customer of
Spartan, will also be awarded a subcontract order for the vehicles.
“This new vehicle is based on a proven design, and we are pleased to put
our specialty vehicle chassis expertise to work in supporting the new Iraqi
military and in protecting American and allied troops in Iraq,” said Richard
Schalter, president of Spartan Chassis. “This contract reinforces our growth
as a leader in specialty chassis and expands our product breadth in the
military business, which continues to become a larger part of our overall
The Iraqi Light Armored Vehicles are similar to the Cougar armored
vehicles and include Force Protection’s V-shaped hull designed to deflect the
force of explosions away from passengers inside the armored hull. Spartan
reported it will begin work on the contract in June 2006 and expects to
complete the contract by May 2007.
According to a recent announcement by BAE Systems, if all options are
exercised under this Indefinite-Delivery and Indefinite-Quantity contract, the
contract could call for BAE Systems to produce 1,050 vehicles.
“This contract is in line with Spartan Motors’ vision of becoming North
America’s premier manufacturer of specialty vehicles and chassis, as it
strengthens our strategic foundation in three markets — emergency-rescue
vehicles, recreational vehicles and military vehicles,” said John Sztykiel,
president and CEO of Spartan Motors.
In May 2006, Spartan announced a subcontract order from Force Protection
to supply and integrate key chassis components and assist in the manufacturing
of 45 Cougar Joint Explosive Ordnance Disposal Rapid Response Vehicles (JERRV)
for use by the U.S. Marine Corps.
“The new opportunities being created by Spartan Motors mark a tremendous
investment in our region’s economic future,” said U.S. Congressman Joe
Schwarz, (R-Battle Creek, Mich.). “Our state would do well to build on this
momentum and continue pursuing policies that make Michigan the best place, bar
none, to invest and create jobs.”
About Spartan Chassis, Inc.:
Spartan Chassis, Inc. (http://www.spartanchassis.com ), a subsidiary of
Spartan Motors, Inc. (Nasdaq: SPAR), is a leading developer and manufacturer
of specialty chassis for recreational vehicles, fire trucks and military
defense vehicles. Spartan Motors (http://theshyftgroup.com ), which also
manufactures emergency rescue vehicles under the brand names of Crimson Fire,
Crimson Fire Aerials and Road Rescue, reported sales of $343.0 million in 2005
and is focused on becoming the premier manufacturer of specialty vehicles and
chassis in North America.
About BAE Systems
BAE Systems is the premier transatlantic 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. With more than 100,000 employees worldwide, BAE
Systems sales exceeded $28 billion in 2005.
About Force Protection, Inc.:
Headquartered near Charleston, South Carolina, Force Protection, Inc.
(OTC Bulletin Board: FRPT) manufactures ballistic and mine protected vehicles
through its subsidiary. These specialty vehicles are designed to offer
significant protection against landmines, hostile fire and IEDs. For more
information about Force Protection, visit http://www.forceprotectioninc.com .
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 of Spartan Chassis, Inc., +1-517-543-6400,
ext. 111; or Ryan McGrath or Jeff Lambert of Lambert, Edwards & Associates,
Inc., +1-616-233-0500, for Spartan Chassis, Inc.