PRECO, Inc. Joins The Sparton Alliance Network Providing Electronic Manufacturing Services in the Midwestern United States

Jackson, Michigan and Morton, Illinois — August 6, 2001 — Electronic Design and Manufacturing Service (EMS) provider, Sparton Corporation (NYSE:SPA), has formed an alliance with PRECO, Inc.- Morton Division, an EMS company located near Peoria, Illinois.

The addition of Preco, Inc. - Morton Division to the Sparton Alliance network provides design and manufacturing capabilities in the Midwestern region of United States. Preco’s capabilities will be the seventh addition to the Sparton Alliance Network.

Founded in 1947, Preco provides electronic products and manufacturing services to many of the industry’s leading Original Equipment Manufacturers. Preco offers complete manufacturing solutions including concurrent engineering, design assistance, PCB and electronic assembly, test engineering, software programming, system integration, final testing and post-manufacturing services. Preco is committed to strategic quality programs such as Component Failure Analysis; QS 9000; ISO 9002 Certification; Statistical Process Control (SPC); customized inspection plans and documentation control. Preco offers a complete EMS solutions package: Turnkey Materials Management, Early Manufacturing Involvement, Manufacturing Process Engineering, Value Engineering, Test Engineering, Conformal Coating and Encapsulation, and New Product Introduction and Pre-Production Services. For a complete listing of services offered visit the Preco website at http://www.preco-morton.com/.

Sparton Corporation (NYSE:SPA) now in its 101st year, provides high mix, low to medium volume electronics contract manufacturing services utilizing six manufacturing locations encompassing over 700,000-sq. ft. along with eleven alliance partner facilities throughout North America and Europe. 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.

For further information, please contact Hani Malek, Vice President & General Manager, Preco, Inc. at (309) 263-7788. Visit the Preco, Inc. website at http://www.preco-morton.com/.