SOURCE: Sparta Commercial Services, Inc.

May 02, 2007 09:30 ET

Sparta Commercial Services, Inc. Partners With Piaggio Group Americas, Inc.

NEW YORK, NY -- (MARKET WIRE) -- May 2, 2007 -- Sparta Commercial Services, Inc. (OTCBB: SRCO), the New York-based financial services company exclusively dedicated to the powersports industry, today announced the launch of a consumer leasing program for Moto Guzzi and Aprilia, the two motorcycle brands distributed by Piaggio Group Americas, Inc. The program will enable all Moto Guzzi and Aprilia dealers to offer Sparta's Flex Lease product to their customers as alternatives to traditional installment loan financing.

Piaggio Group's US dealer network currently numbers approximately 400, including retailers of Vespa and Piaggio, the two well known brands of scooters also distributed by the Piaggio Group. Among those dealers, more than 180 carry the Moto Guzzi and/or Aprilia brands. Piaggio Group Americas, Inc. is a subsidiary of Piaggio & C. S.p.A., based in Pontedera, Italy.

Commenting on the program's launch and rollout, Anthony Havens, Sparta's CEO, said, "We expect that this relationship with two of the best known and respected imported brands in the industry will grow into an exciting and highly beneficial line of business for Sparta. And we're enthusiastic about being able to offer such an advantageous alternative to classical financing for Moto Guzzi and Aprilia brand loyalists."

According to Havens, "Sparta's Flex Lease is arguably the most flexible way for consumers to acquire a new or used motorcycle in today's marketplace. It offers significantly lower monthly payments than an installment loan on the same vehicle, over the same term, and gives consumers a number of options at lease end that they don't have with any installment loan. There is simply no other program of its kind in the powersports industry, and we're especially pleased that Piaggio Group Americas, Inc. recognized its value and decided to make it available to its Moto Guzzi and Aprilia customers."

According to Paolo Timoni, President and CEO of Piaggio Group Americas, Inc., the new lease program will be an advantage to customers of the fine Italian products. "Customers who appreciate the quality, performance, and prestige that Piaggio products have to offer, now have an opportunity to own those vehicles with a lower out of pocket expense, and shorter commitment. This gives those customers an opportunity to enjoy new products every few years, without the hassles of a trade-in."

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.

About The Piaggio Group:

Established in 1884 by Rinaldo Piaggio and based in Pontedera (Pisa, Italy), the Piaggio Group is one of the world's top manufacturers of two-wheel motor vehicles. With seven production facilities, five Research & Development centers, over 6,300 employees in 50 countries and an annual production of more than 610,000 vehicles, the Piaggio Group has a consolidated leadership in the European 2-wheeler market. Piaggio ended 2006 with more than 300 dealers in the US, and an over 20 percent share of the US scooter market for Piaggio and Vespa scooters.

Its production includes scooters, motorcycles and mopeds in the 50cc to 1,200cc displacement range, marketed under the Piaggio, Vespa, Gilera, Derbi, Aprilia, Moto Guzzi and Scarabeo brands. The Piaggio Group is controlled by Immsi S.p.A., an industrial and services holding listed on the Milan Stock Exchange, and is headed by Chairman and CEO, Roberto Colaninno. As of July 11th, 2006, Piaggio & C. S.p.A.'s ordinary shares are listed on the Milan Stock Exchange (Borsa Italiana).

Across its more than 120-year history, the Group has been active in almost every area of transport including: naval fittings, the construction of locomotives and rolling stock, engines for the aeronautics sector, seaplanes, and civil and military aircraft. Since the introduction of the Vespa scooter in 1946, Piaggio has led the way in meeting the growing demand for personal mobility. A universally recognized symbol of Italian style, Vespa is an outstanding success story with more than 16 million scooters produced to date. In addition, at the end of 2004, Piaggio acquired two prestigious brands, Moto Guzzi and Aprilia.

Contact Information

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