Sparton Corporation Releases First Quarter Results for Fiscal Year 2003 At Its Annual Shareholders Meeting

(JACKSON, MICHIGAN)—October 23, 2002—At the Annual Shareholders’ meeting today, Electronic Contract Manufacturing Service (EMS) provider Sparton Corporation (NYSE:SPA) announced shareowner voting results and released fiscal 2003 First Quarter results.

Current Board of Directors members, Richard L. Langley and William I. Noecker, were reelected to three-year terms expiring in 2005. Dr. Richard J. Johns, a medical doctor and world-renowned expert in biomedical engineering, was also elected to the Board of Directors for a three-year term. Dr. Johns replaces director Mr. Robert J. Kirk, who is retiring as a director after 24 years of service. The shareholders also approved a proposal to increase the number of authorized shares of Common Stock in the Company to 15,000,000 shares.

Chief Executive Officer, David W. Hockenbrocht, commented on the Company’s progress and the continuing development of its EMS business. Mr. Hockenbrocht was cautiously optimistic about the Company’s outlook for short-term growth.

Mr. Hockenbrocht announced fiscal 2003 First Quarter results. Sales were $36,768,000 with earnings of $3,578,000 ($.47 per share). This compares to the previous year’s First Quarter sales of $40,810,000 and $787,000 ($.10 per share) in earnings. The 2003 results include the impact of the previously announced settlement with various governmental agencies, including the U.S. Department of Energy. The Company will receive $5,850,000 as a partial recovery of costs associated with its Coors Road remediation efforts in Albuquerque, New Mexico. Governmental sales backlog at the quarter’s close on September 30, 2002, totaled $51,340,000.

The news release contains forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “encouraged", “appear", “should", “expectation", 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 form 10Q for the quarter ended September 30, 2002, 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.

SPARTON CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

For the Three-Month Periods ended September 30, 2002 and 2001

Three-Month Periods 2002 2001 Net sales $36,767,907 $40,810,080 Costs of goods sold 33,003,645 036,082,165 3,764,262 4,727,915 Selling and administrative income (expense): Selling and administrative expenses ( 3,524,214.) ( 3,279,106.) EPA related - net 5,347,000 ( 173,426.) 5,587,048 1,275,383 Other income (expense): Interest and investment income 117,297 128,624 Equity loss in investment ( 39,000.) ( 71,250.) Other - net 14,490 ( 41,947.) 92,787 15,427 Income before income taxes 5,679,835 1,290,810 Provision for income taxes 2,102,000 504,000 Net income $ 3,577,835. $786,810 Basic and diluted earnings per share $0.47. $0.10. Dividends $-0-. $-0-. See accompanying notes. Notes: 1. Financial information was taken from the Company’s internal records and is unaudited.

2. For the three-month periods, average shares outstanding were 7,563,105 in 2002 and 7,570,090 in 2001. Differences in the weighted average number of shares outstanding for purposes of computing diluted earnings per share were due to the inclusion of employee incentive stock options. These differences in the calculation of basic and diluted earnings per share were not material and resulted in no differences in per share amounts.

3. The three-month period ended September 30, 2002, includes the impact of the previously announced settlement with various governmental agencies, including the U.S. Department of Energy, in which the Company will recover $5,850,000 of costs associated with its Coors Road remediation efforts in Albuquerque, New Mexico.