N@N

Sparton Shareholders Overwhelmingly Approve Corporate Governance Changes

^{Published on 2010-10-29 06:11:50 - Market Wire}
 

SCHAUMBURG, Ill.--([ BUSINESS WIRE ])--Sparton Corporation (NYSE: SPA), a supplier of complex and reliable electronic and electro-mechanical products, sub-assemblies and related services to the highly regulated Medical, Defense & Security, and Aerospace markets held its fiscal 2010 Annual Meeting of Shareholders on October 27th, 2010 with the five shareholder proposals being approved.

Mr. David P. Molfenter, Mr. W. Peter Slusser, and Dr. Lynda J.-S. Yang were re-elected to the Board of Directors under proposal 1. With the approval of proposals 3 and 4, all directors, including this yeara™s slate, will stand for re-election at each annual meeting starting at fiscal 2011a™s Annual Meeting of Shareholders. Further, each director will be required to meet a majority-vote threshold in uncontested election of directors, with a plurality vote standard in contents elections.

Proposal 3, the Amendment of the Articles of Incorporation required a two-thirds super-majority vote of all shares outstanding to be approved and it received a favorable vote of 89% of all outstanding shares and 99% of voted shares. Proposal 4, the Amendment of the Code of Regulations required a majority vote of all shares outstanding for approval and it received a favorable vote of 89% of all outstanding shares and 99% of voted shares.

A non-binding resolution on executive compensation (asay-on-paya) which is not required by law until 2011 was proposal 5. This proposal garnered 93% approval of all shares voted.

Lastly, proposal 2, the ratification of financial auditors, BDO USA LLP, was approved with 96% of all shares voted.

Cary Wood, President & CEO commented, aSpartona™s shareholders overwhelmingly approved the proposed changes to the way it will govern now and into the future. We believe that the changes made will contemporize and position Sparton as a leading-edge public company in the area of corporate governance. Through our Investor Relations initiative, we have been meeting with our existing shareholders and engaging in an open dialogue on Spartona™s successful turnaround, the strategic plans for growth, and taking note of our shareholders concerns. It became very apparent that a common theme among our shareholders was the desire to improve Spartona™s corporate governance. The proposals set forth and approved will strengthen Spartona™s relationship with its current and future shareholders.

The proxy statement, annual report, and the annual meeting of shareholders presentation can be accessed at Spartona™s website at [ http://sparton.com/sparton-investor-relations.html ].

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 111th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, and field service. The primary markets served are in the Medical Device, Defense & Security Systems, and Electronic Manufacturing Services industries. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton's website 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 Sparton'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 Sparton's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.