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Sparta Commercial Announces Upcoming Launch of a New Subsidiary

^{Published on 2010-06-24 06:11:58 - Market Wire}
 

NEW YORK, NY--(Marketwire - June 24, 2010) - Sparta Commercial Services, Inc. (OTCBB: [ SRCO ]) today announced that it will be launching a new subsidiary in June, 2010, although the name of the new company, and its website, will remain confidential until the launch date.

According to Sparta, the new entity will, for the first time, offer consumers, powersports dealers, insurers, and lenders, an opportunity to review a detailed history of used motorcycles before any financing or insurance coverage is approved, or any purchase is concluded. The reports will show the service record, any accident history, the number of previous owners, and the last documented mileage. For a fee, the new subsidiary's system will track all of the information through the vehicle identification number, a unique identifier for every production vehicle in the world, regardless of the country of origin.

Speaking about the announcement, Anthony Havens, Sparta's CEO, said, "A similar system has been in place in the automotive industry for many years, and very successfully. Given the fact that so many powersports vehicles cost as much, or more, than many of the cars and trucks that are on the road, a system that would provide consumers and all interested parties with the kind of information that would help in the decision-making process about whether or not to purchase or insure a particular vehicle seems logical and wise. So, we decided to get into that business in a strong way, and we expect our new subsidiary to become a trusted and widely used source of important and valuable information, as well as a very successful business over time."

Havens then explained that Sparta wanted to keep the new entity's name and website confidential until its official launch date because premature visits to the website would be counterproductive, and potentially problematic. "We're very excited about the prospects for success for our new venture." Havens added, "And we believe that this activity represents the newest and perhaps the most far-reaching innovation for the powersports industry to come along in many years."

About Sparta Commercial Services, Inc.
Sparta Commercial Services, Inc. (OTCBB: [ SRCO ]) is a New York-based, nationwide financial services company dedicated to municipal and governmental leasing. Sparta specializes in the financing of essential equipment and services for the law enforcement and emergency response communities. Sparta also offers financing and leasing products to consumers and retail powersports dealers.

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. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: [ http://www.sec.gov ].