Sparton Corporation Announces the Expansion of Sonobuoy Joint Venture.

JACKSON, Mich. -- Sparton Corporation (NYSE:SPA) and Ultra Electronics Holdings plc ("Ultra") jointly announce the broadening of the scope of an existing joint venture agreement between their respective subsidiaries, Undersea Sensor Systems, Inc. (USSI), and Sparton Electronics Florida, Inc. This joint venture, known as ERAPSCO, is being revised to encompass a broader range of sonobuoy types qualified for use by the US Navy and procured by most international customers.

Sonobuoys are the sensors that are dropped into the ocean from Anti-Submarine Warfare (ASW) helicopters or aircraft and are used to detect submarines acoustically.

Under this agreement, the companies will achieve operational efficiencies and will eliminate duplicated development and production engineering efforts. This will allow both Ultra and Sparton to focus on undertaking those activities in the supply chain to which they add the most value. Customers will consequently receive the most cost effective airborne ASW sensor capability that can be achieved from available budgets and sustained in the long term.

David W. Hockenbrocht, Chief Executive Officer of Sparton and Douglas Caster, Chief Executive Officer of Ultra jointly commented: "We are pleased to have reached this agreement so that USSI and Sparton can work co-operatively. Our two companies will be able to pool their innovative ideas and manufacturing expertise and will be able to support customer ASW missions more effectively."

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.

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.