Sparton Corporation Announces the Closure of its Deming, New Mexico Manufacturing Facility

January 8, 2007 - (Jackson, Michigan) -Electronics Design and Manufacturing Services provider (EMS), Sparton Corporation (NYSE:SPA) has announced it will discontinue and close manufacturing operations at its Deming, New Mexico facility not later than March 31, 2007.

Sparton Corporation has offered cable wire harness assembly services to select transportation customers for many years. Based upon the current business climate, the pressure of offshore pricing and demand within the market Sparton can no longer offer competitive cable wire harness solutions to its customers. The Company does not expect the elimination of these operations will have a material adverse impact on future financial performance.

All current commercial customer orders will be completed and shipped as scheduled. Existing intra-company production will be transferred to other Sparton facilities as soon as possible. The Company is reviewing its alternatives with respect to the disposal of manufacturing equipment and real estate.

Sparton will coordinate closely with local and state authorities along with employment agencies to help associates make successful employment transitions.

Safe Harbor and Fair Disclosure Statement
The statements contained in this release which are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, anticipate, target and similar terms and concepts, and the negatives of such expressions) are forward-looking statements that involve risks and uncertainties, including, but not limited to the economic performance of the electronics and technology industries; the risk of customer delays, changes or cancellations in both on-going and new programs; the Company's ability to secure new customers and maintain its current customer base; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including the new Vietnam facility; possible unexpected costs and operating disruption in transitioning programs; the effect of general economic conditions and world events (such as terrorism); the impact of increased competition; and other risks detailed in the Company's Securities and Exchange Commission filings.