SOURCE: Sparta Commercial Services, Inc.

February 28, 2008 10:44 ET

Sparta Commercial Continues to Thrive as Credit Markets Tighten

NEW YORK, NY--(Marketwire - February 28, 2008) - Sparta Commercial Services, Inc. (OTCBB: SRCO) today announced that despite the downturn in many segments of the financial services markets, it is seeing continuing demand for its offerings in the powersports industry and its business continues to grow. Furthermore, the performance of its portfolio of consumer loans and leases continues to perform in line with internal expectations and maintains its historic low rate of defaults and delinquencies.

In commenting on the Company's continued success in the face of the difficulties being seen by other financial services entities, Anthony Havens, Sparta's Chairman and CEO, said, "When we recognized the early signs of the emerging problems in the consumer credit markets more than a year ago, we adjusted our proprietary credit decisioning system to reflect our assumptions of what the future held for our potential customers and the assets underlying their obligations. Unfortunately for the U.S. economy, many of our assumptions became realities; however, our actions have served us extremely well, allowing our portfolio to continue to perform quite satisfactorily, which pleases us and our shareholders."

Havens concluded by saying, "Given the exceptional performance of our portfolio, we remain confident in our projections of continued growth for the foreseeable future."

About Sparta Commercial Services:

Sparta Commercial Services, Inc. (www.spartacommercial.com) is an Internet-based acceptance (sales finance) and leasing company dedicated exclusively to the powersports industry, concentrating on motorcycles over 600cc, 4-stroke all-terrain vehicles, and select scooters through our programs for manufacturers, distributors, and dealers. Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, obtaining, satisfying terms of, and amount of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Contact Information

  • Contact:
    Dick Trotter, COO
    Sparta Commercial Services, Inc.
    (212) 239-2666