Timing and Contract Issues Prevent Sparton Corporation From Purchasing a Manufacturing Plant in Mount Pleasant, Iowa

JACKSON, Mich.--(BUSINESS WIRE)--Sept. 27, 2005--Electronics Design and Manufacturing Service (EMS) provider Sparton Corporation (NYSE:SPA) will no longer pursue the acquisition of a manufacturing plant in Mt. Pleasant, Iowa. The effort is being halted by Sparton due to insufficient time to retain the existing workforce, and to secure commitments for a sufficient level of new business to assure ongoing success.

From the outset, Sparton's interest in opening operations at the Mount Pleasant, Iowa facility was dependent on securing United States Government, Department of Defense (DOD) contracts.

No further negotiations between Sparton and Mount Pleasant or the State of Iowa economic development leaders have been scheduled.

About Sparton Corporation
Sparton Corporation (NYSE:SPA) now in its 105th year, provides design engineering and electronics contract manufacturing services utilizing seven manufacturing locations encompassing nearly 837,000 sq. ft. along with several alliance partner facilities throughout North America. Sparton also opened a manufacturing plant in Vietnam, which began operations in March 2005. 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, post-manufacturing and engineering 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.

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.