Granholm Announces Sparton Corporation Expansion in Blackman Township

Sparton Corp. to Invest $2.7 Million, Add 100 New Jobs
Governor Jennifer M. Granholm today announced that Sparton Corporation plans to invest $2.7 million to expand its Blackman Township facility near Jackson to accommodate an expansion of its engineering and production capabilities for electronics assemblies for the aerospace industry and other applications. The project will create 100 new jobs at Sparton directly over the next 4 years and the Michigan Economic Development Corporation estimates approximately 88 additional new jobs for the community will be created as a result of this investment. Assistance offered through the MEDC helped convince the company to choose Michigan instead of a competing site in Florida.

"Sparton's decision to invest in Michigan over competing sites is evidence of the strength of our workforce and our business friendly environment," Granholm said. "Our work to diversify and grow Michigan's economy is beginning to pay dividends as global companies like Sparton continue to grow and succeed throughout the state." Based on the MEDC's recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at more than $1.3 million over 12 years to win the Company's investment. The MEDC is also providing a $350,000 Community Development Block Grant to assist in training new employees. Blackman Township has approved a 12-year tax abatement worth $650,000 to support the project.

"I've met and discussed this expansion with Sparton President and CEO, David Hockenbrocht, and am excited to see this come together favorably for the state and the Jackson area in particular," MEDC President and CEO James C. Epolito said. "Both Blackman Township, the Enterprise Group of Jackson and the Jackson Citizens for Economic Growth were instrumental in helping keep this great, high-tech company growing here."

An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate an additional 88 indirect Michigan jobs, in addition to the 100 created directly by the Company. The project is expected to generate more than $93 million in personal income for Michigan workers over the life of the tax credit.

"The new range of incentives now being provided by our state is finally beginning to make Michigan competitive with other states who have been aggressive in offering up front incentive monies in return for job creation in their states," Sparton CEO and President David W. Hockenbrocht said.

Mr. Hockenbrocht also credited Sen. Mark Schauer and Rep Mike Simpson for championing this effort on Sparton's behalf

The Sparton Corporation expansion is one of six economic development projects the governor announced today. In all, they are expected to create and retain a total of 5,420 Michigan jobs. "The Sparton Corporation is one of Jackson's premier companies and it is great to see that they will be expanding in our community as a result of the extraordinary efforts of MEDC, and those of Blackman Charter Township and our organization," Enterprise Group of Jackson President and CEO Steve Czarnecki said.

In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 188,000 jobs as a result of targeted assistance provided by the MEDC.

Sparton Corporation (NYSE:SPA) now in its 107th year, provides high mix, low to medium volume electronics design and manufacturing services utilizing seven manufacturing locations encompassing over 800,000 square feet. In addition to strong core surface mount technology (SMT) and plated through-hole (PTH), printed circuit board assembly (PCBA) and complete assembly manufacturing capabilities, Sparton offers a complete range of pre-manufacturing and post-manufacturing services. Pre-manufacturing services include product development, concurrent engineering, design for test (DFT), design for manufacturing (DFM), design for assembly (DFA), printed circuit board design and quick-turn prototyping. Post-manufacturing services range from repair depot, direct ship, distribution management to field support. Sparton employs more than 1,200 associates worldwide with 128 in Michigan.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation's initiatives and programs, visit the Web site at www.michigan.org.

This news release contains forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "intends", "appears", "should", "expects", "anticipate", "plans", "will", "shall" and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Although the Company believes that these statements are based upon reasonable assumptions, such statements involve risks, uncertainties, and assumptions, including but not limited to industry and economic conditions, customer actions, and the other factors discussed in the Company's Quarterly Report Form 10-Q for the quarter ended March 31, 2007, Annual Report on Form 10-K for the fiscal year ended June 30, 2006, and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.