SOURCE: Sparta Commercial Services, Inc.

March 05, 2008 09:00 ET

Sparta Commercial Scores With Its Municipal Lease Program

NEW YORK, NY--(Marketwire - March 5, 2008) - Sparta Commercial Services, Inc. (OTCBB: SRCO) announced today that with the recent delivery of a fleet of fifteen police motorcycles to the City of Newark, NJ, it is continuing its strong growth in the municipal leasing segment of its business. As of December 31, 2007, the total number of jurisdictions it has contracted for municipal motorcycle fleets was forty-nine in eight different states. Furthermore, in just the first two months of the new calendar year, twenty-seven new municipalities are scheduled to contract for the first time, making for a total of seventy-six municipalities in sixteen states.

In commenting on the announcement, Anthony Havens, Sparta's Chairman and CEO, said, "Although Sparta is best known in the powersports industry for its consumer financing and leasing programs, we looked at the governmental market for police motorcycles about a year ago and determined that there was indeed a real opportunity for Sparta. We recognized that the potential in this particular market is significant, and our own estimates were recently reinforced by the fact that the November/December '07 issue of Police Fleet Manager Magazine reported that more than 3,400 police departments around the country utilize Harley-Davidson motorcycles. These numbers don't include the several other motorcycle brands being used by other jurisdictions and, naturally, our program accommodates all brands."

Sparta also provides assistance to powersports dealers who are interested in bidding on opportunities to provide motorcycles to law enforcement agencies by aiding in the preparation of bids, thereby making it easier for the dealers to secure sales through municipal lease contracts.

In describing the advantages to municipalities of leasing rather than purchasing the required motorcycles, Havens added, "With so many local governments experiencing budget shortfalls as a result of shrinking tax bases, our Municipal Leasing Program gives them a cost-effective alternative to buying the motorcycles they need. We anticipate strong growth in this particular line of our business as more and more jurisdictions become aware of the benefits. Our intention is to continue to bring innovative programs like the Municipal Lease Program to the powersports marketplace while we produce increased value to our shareholders."

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