Sparta to Offer Lease Purchase Financing for Armet Armored Vehicles

NEW YORK, NY, Aug 27 (MARKET WIRE) --
Sparta Commercial Services, Inc. (OTCBB: SRCO) today announced that it
has entered into a strategic agreement with Armet Armored Vehicles, Inc.
Sparta will offer its Lease Purchase Financing Product to municipalities
throughout the U.S. that purchase units from Armet's line of tactical
armored vehicles.

Lease Purchase Financing offered by Sparta allows municipalities to
purchase vital equipment and property through installment lease payments,
with no large, up-front cash outlays required. As payments are made, the
municipality -- which maintains ownership of the equipment -- builds
equity in its investment. Furthermore, because Lease Purchase Financing
is not considered "Debt" for municipalities, only the current year's lease
payment(s) is required to be included in the operating budget. With Lease
Purchase Financing, the municipality takes title ownership in the
equipment at the beginning of the lease and owns the equipment at the end
of the lease term.

Armet is a worldwide leader as a manufacturer of custom designed armored
vehicles. With production facilities in the United States, Australia,
India, Canada, and Malta, and service and sales locations in numerous
countries throughout the world, Armet's leadership position in the armored
vehicle industry is unequalled.

Commenting on the new relationship with Armet, Anthony Havens, Sparta's
CEO, said, "Although our primary focus continues to be on consumer
financing and leasing in the powersports industry, we expect that this
agreement with Armet will significantly increase our volume of business in
our Municipal Leasing Program. It demonstrates once again how Sparta's
Municipal Lease Purchase Financing Product is becoming a very desirable
alternative for governmental agencies that require these and other types
of equipment, yet have a need to reduce their annual expenditures at a
time when tax revenues are shrinking. Although our Municipal Program has
thus far focused on the nationwide need for the financing of police
motorcycles, it is designed for virtually any type of vehicle, as well as
other equipment, and Armet's armored units are a perfect fit for Sparta's
Municipal Program. We are pleased that Armet chose our firm to support
their financing needs."

Armet's armored vehicles typically range from $200,000 to $250,000, and
are being utilized by police departments, heads of state, government
agencies, and VIPs around the world.

In closing, Havens said, "Sparta is committed to finding new, appealing,
and profitable business opportunities wherever and whenever possible. This
new relationship with Armet is yet another demonstration of that
commitment. It's also another indication that Sparta, even in difficult
economic times, can continue to meet the objectives of its business model
and increase value for our shareholders."

About Sparta Commercial Services: Sparta Commercial Services is a New
York-based, nationwide financial services company dedicated to the
powersports industry, offering financing and leasing products to consumers
and retail powersports dealers, as well as a variety of commercial
products for governmental agencies that require motorcycles and other
equipment for law enforcement activities.

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:

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

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