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Sparton Awarded $17 Million ID/IQ Engineering Service Subcontract

^{Published on 2010-12-15 06:05:49 - Market Wire}
 

SCHAUMBURG, Ill.--([ BUSINESS WIRE ])--SpartonCorporation (NYSE: SPA) today announced the award of a $17 million Indefinite Delivery/Indefinite Quantity (ID/IQ) Engineering Services Subcontract with the United States Navy as part of the ERAPSCO joint venture. The five-year subcontract is for technical efforts related to continued sonobuoy development, improved performance and advanced capabilities.

"Sparton is firmly committed to the development of innovative technology and to supplying the U.S. Navy with quality products that help secure our borders. We are proud to continue in our role as a technology partner for the U.S. Navy"

During the term of the five-year subcontract, specific tasks will be identified and individual task orders will be issued to ERAPSCO. Thereafter, Spartona™s subcontract will be adjusted to meet appropriate target costs in total amounts not to exceed $17 million. Technical work associated with the applicable task orders will be performed at Spartona™s DeLeon Springs, Florida facility.

ERAPSCO is a joint venture between Sparton and USSI, a subsidiary of Ultra Electronics Holdings PLC. Under the ERAPSCO subcontract, Sparton will provide technical support of advanced sonobuoy projects, enhanced performance initiatives and integration/test requirements. The primary purpose of a sonobuoy is to detect acoustic emissions or reflections from potentially hostile submarines and transmit these signals to US Navy airborne antisubmarine warfare forces.

aSparton is firmly committed to the development of innovative technology and to supplying the U.S. Navy with quality products that help secure our borders. We are proud to continue in our role as a technology partner for the U.S. Navy,a said Cary Wood, president and CEO, Sparton Corporation.

Currently headquartered in Schaumburg, Illinois, Sparton is the only U.S.-owned designer and manufacturer of sonobuoys for the U.S. Navy.

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 to technology-driven companies in the medical device, defense & security systems, and electronic manufacturing services markets. 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

Certain statements described in this press release are forward-looking statements within the scope of the Securities Act of 1933, as amended (the aSecurities Acta), and the Securities Exchange Act of 1934, as amended (the aExchange Acta). Forward-looking statements may be identified by the words abelieve,a aexpect,a aanticipate,a aproject,a aplan,a aestimate,a awilla or aintenda and similar words or expressions. These forward-looking statements reflect Spartona™s current views with respect to future events and are based on currently available financial, economic and competitive data and its current business plans. Actual results could vary materially depending on risks and uncertainties that may affect Spartona™s operations, markets, prices and other factors. Important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, Spartona™s financial performance and the implementations and results of its ongoing strategic initiatives. For a more detailed discussion of these and other risk factors, see PartI, Item1A, Risk Factors and PartII, Item7, Managementa™s Discussion and Analysis of Financial Condition and Results of Operations, in Spartona™s Form 10-K for the year ended June30, 2009, and its other filings with the Securities and Exchange Commission. Sparton undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.