Sparton Corporation Announces the Sale of Its Deming, NM Facility

Business Wire, March 30, 2007

SANTA FE, N.M. -- Compass Components, a California corporation, will purchase the Sparton Technology Deming, NM electronics building and certain inventory and equipment, and will begin to rehire laid off employees, according to Rick Homans, Cabinet Secretary for the New Mexico Economic Development Department.

Compass Components, headquartered in Fremont, CA, a successful cable, harness and electro-mechanical assembly manufacturer is in the same type of wire harness business that was being performed at the Deming facility, which is owned by a subsidiary of Sparton Corporation (NYSE:SPA), headquartered in Jackson, Michigan.

Compass will begin operations at the facility April 1. Compass and Sparton will seek to finalize the sale of the building by June 29. Thomas Maurer, Vice President with Compass will oversee all aspects of the Deming operation.

Sparton had announced January 8, 2007 that it would close the plant by March 31 and lay off its 76 employees. Sparton Technology has been in business in Deming since the early 1980s. Compass will initially hire up to 12 employees, and Company officials say they would like to ramp up to 75 or more employees between one and two years from now. They intend to assume the name, Deming Electronics, and to operate the facility as a division of Compass.

"Compass will bring new investment and new energy to Deming," Homans said. "They chose to come here because of the loyalty and skill of the workforce, and the red carpet treatment they received from the city, county, state and our federal delegation."

The announcement is the culmination of two months of hard work by local, state and federal officials to either help Sparton bring new contracts to the plant or to assist in finding a buyer that would put employees back to work. Homans said Governor Bill Richardson played a key role in the transaction by making phone calls to encourage the deal between Sparton and Compass. The state's Department of Labor has also been working closely with Sparton to provide unemployment services to employees who have been or will be, laid off. Homans had formed a "Deming Strike Force" to try to save the plant and jobs. The team included: Homans, Sparton President David Hockenbrocht, representatives from Senators Domenici and Bingaman and Representative Pearce, officials from the City of Deming and Luna County, including Linda Smrkovsky Executive Director, and Richard Mcinturff Administrator, Senator John Arthur Smith, Representative Dona Irwin and Hanson Scott, Brigadier General, USAF (Ret).

About Sparton Corporation

Sparton Corporation (NYSE:SPA) now in its 107th year, provides high mix, low to medium volume electronics design and manufacturing services utilizing seven manufacturing locations encompassing over 800,000-sq. ft. 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.

About Compass

Compass Components, Inc. headquartered in Fremont, CA, is a leader in the wire & cable and electro-mechanical manufacturing industry. Compass has enjoyed over 25 years of successful operation providing manufacturing, engineering, and component distribution services to a variety of industries and customers both regionally, and nationwide. Compass partners with customers in active materials management programs. Compass provides a high degree of support and involvement in engineering and manufacturing from design concept through the manufacturing process to ensure quality and the success of our customers and their products.

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 the Company'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 the Company's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.