Sparton Corporation Pays Off Previous Credit Facility, Enters into New Credit Agreement

Schaumburg, Ill.– August 18, 2009 – Sparton Corporation (NYSE: SPA) today announced that the company and its wholly-owned subsidiaries, including Sparton Electronics Florida, Inc., Spartronics, Inc., Sparton Medical Systems, Inc., Spartronics Vietnam Co., Ltd., Sparton Technology, Inc. and Sparton of Canada Limited entered into an Amended and Restated Revolving Credit and Security Agreement, dated as of August 14, 2009, with National City Business Credit, Inc. as a lender and as agent for the lenders.

The Amended and Restated Revolving Credit Agreement replaces the Company’s existing line of credit issued by National City Bank by providing a revolving line of credit facility of up to $20 million to support the Company’s working capital needs and other general corporate purposes. It is secured by substantially all assets of the Company and has a term of three years, expiring on August 13, 2012.

Both the existing National City Bank facility and the remaining balance of the Company’s term loan with National City Bank were paid off using available cash and the Company did not draw down on any portion of the new National City Business Credit, Inc. facility as of the closing date of the Amended and Restated Revolving Credit Agreement.

“Given the restrictive credit markets of today and the company’s past performance over several years, the new financing agreement validates Sparton’s restructuring actions as further evidence of the Company’s future vitality,” said Cary Wood, president & CEO, Sparton. “Through our rigorous turn around activities, we have been able to raise more than enough cash to pay down the previous credit facility and will not have to draw down on the new line of credit at this time,” added Wood.

Details of the new credit agreement are outlined in the Company’s Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission.

About Sparton Corporation
Sparton Corporation (NYSE:SPA) now in its 109th year, is a broad-based provider of electronics to technology-driven companies in diverse markets. The Company provides its customers with sophisticated electronic and electromechanical products through prime contracts and through contract design and manufacturing services. Headquartered in Schaumburg, Ill., Sparton currently has four manufacturing locations worldwide. The Company's Web site may be accessed at http://www.sparton.com.

Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in the Company's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.

Media contact:
Dick Pacini
The Millerschin Group
248-276-1970
248-770-6446 (cell)
dpacini@millerschingroup.com