SOURCE: Sparta Commercial Services, Inc.

June 12, 2007 14:46 ET

Sparta Commercial Reports Stronger-Than-Expected Early Results in Municipal Lease Program

NEW YORK, NY--(Marketwire - June 12, 2007) - Sparta Commercial Services, Inc. (OTCBB: SRCO), the New York-based financial services company exclusively dedicated to the powersports industry, today reported that its Municipal Lease Program, launched February 15, 2007, produced over $4 million in originations during the first three months of activity, exceeding the company's projections for the new program's initial phase. The company is also reporting that despite the fact that its second three-month period for the program began May 15, 2007, the volume of contracts that are in various stages of processing well exceeds that of the initial three months.

Commenting on the report, Anthony Havens, Sparta's CEO, said, "Although we were confident that the Municipal Lease Program would prove to be another successful product line for Sparta, the response thus far has been much better than we anticipated. Given the fact that the program had to appeal to the government agencies that utilize motorcycles as a necessary part of their responsibilities, which are mostly law enforcement, and also to the retail motorcycle dealers who provide the vehicles to those agencies, we thought that the marketing cycle might take more time. Clearly, we were pleasantly surprised."

According to Sparta, the market for its Municipal Lease Program includes the thousands of town, city, county, and state agencies throughout the country, as well as the federal government, that rely on the use of motorcycles for the performance of law enforcement duties.

Havens continued, "Before launching the Municipal Lease program, we identified a number of distinctive elements in the vehicle acquisition process, and developed a highly customized method of dealing with the regulations and requirements of so many different agencies. We perfected that methodology, talked with the leading retail dealers who service this market segment, and found a very willing and cooperative audience. Our Municipal Lease Program actually makes it easier for the government agencies to acquire the motorcycles they need, while relieving retail dealers of much of the burdensome processing associated with government acquisition."

Havens concluded by saying, "Sparta's Municipal Lease Program is yet another example of how we look at the overall powersports market, identify needs that require real innovation, and then develop and implement programs to meet those needs. With this kind of flexibility and forward looking posture, we expect that the long-term results will be extremely positive."

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 private label programs for manufacturers' distributors. Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services including GAP coverage and vehicle service contracts.

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, amount of, obtaining and satisfying terms 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