Spartan Chassis Secures $45 Million Contract to Supply Components for Iraqi Light Armored Vehicles
June 06 2006 - 10:51AM
PR Newswire (US)
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 business." 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://www.spartanmotors.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:FRPT)
(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. DATASOURCE: 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. Web site: http://www.spartanchassis.com/
http://www.spartanmotors.com/ http://www.forceprotectioninc.com/
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