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Sparton Corporation and Ultra Electronics USSI Joint Venture (ERAPSCO) Awarded $64.6M for U.S. Navy Sonobuoy Contracts

August 27, 2018

COLUMBIA CITY, Ind. & SCHAUMBURG, Ill.--(BUSINESS WIRE)--Aug 27, 2018--Sparton Corporation (NYSE:SPA) and Ultra ElectronicsHoldings plc (ULE) announce the award of subcontracts valued at $64.6 million to their ERAPSCO joint venture, for the manufacture of sonobuoys for the United States Navy. The award is a GFY18 ERAPSCO Indefinite Delivery Indefinite Quantity (IDIQ) contract release for sonobuoy requirements under ERAPSCO’s five year contract. ERAPSCO will provide production subcontracts in the amount of $30.3 million and $34.3 million to Ultra Electronics USSI and Sparton DeLeon Springs, LLC respectively. Production will take place at Ultra Electronics USSI’s Columbia City, IN facility and Sparton’s DeLeon Springs, FL facility and is expected to be completed by April 2020.

Simon Pryce, Chief Executive Officer of Ultra Electronics, commented: “I am pleased that we have secured this significant contract to provide continuing critical sensor capabilities to the U.S. Navy. This contract underscores the increased focus on anti-submarine warfare and our ability through ERAPSCO to provide a range of key technologies and capabilities to support the U.S. Navy’s continued commitment to this important mission”.

“Undersea warfare is a vital part of the defense of our nation and our allies throughout the world,” said Joe Hartnett, Interim President and Chief Executive Officer of Sparton Corporation. “We are honored that the Navy continues to rely on us to manufacture a product so fundamental to that task.”

Further information about Ultra

Ultra Electronics is a group of businesses which manage a portfolio of specialist capabilities, generating highly differentiated solutions and products in the defense & aerospace, security & cyber, transport and energy markets by applying electronic and software technologies in demanding and critical environments to meet customer needs

Ultra has world-leading positions in many of its specialist capabilities and, as an independent, non-threatening partner, is able to support all of the main prime contractors in its sectors. As a result of such positioning, Ultra’s systems, equipment or services are often mission or safety-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultra’s positions for the long term which underpins the superior financial performance of the Group.

Ultra offers support to its customers through the design, delivery and support phases of a program. Ultra businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultra’s overarching, corporate strategy.

Across the Group’s three divisions, Ultra operates in the following eight market segments:

• Aerospace • Communications • C2ISR • Infrastructure • Land • Maritime • Nuclear • Underwater Warfare

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 119th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace and Industrial & Commercial. Headquartered in Schaumburg, Illinois, Sparton currently has thirteen manufacturing locations and engineering design centers worldwide. Sparton’s website may be accessed at www.sparton.com.

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 Sparton’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 Sparton’s most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180827005055/en/

CONTACT: For: Ultra Electronics:

Patrick Allison, 260-255-2251

Ultra Electronics USSI Business Development Vice President

www.ultra-ussi.com

or

For: Sparton:

Investors:

Institutional Marketing Services (IMS)

John Nesbett/Jennifer Belodeau, 203-972-9200

jnesbett@institutionalms.com

or

Company:

Sparton Corporation

Joseph McCormack, 847-762-5812

jmccormack@sparton.com

KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS INDIANA

INDUSTRY KEYWORD: TECHNOLOGY OTHER TECHNOLOGY MANUFACTURING AEROSPACE DEFENSE CONTRACTS

SOURCE: Sparton Corporation

Copyright Business Wire 2018.

PUB: 08/27/2018 08:30 AM/DISC: 08/27/2018 08:31 AM

http://www.businesswire.com/news/home/20180827005055/en

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