NEW YORK, NY--(MARKET WIRE)--Aug 25, 2008 -- Sparta Commercial Services, Inc. (OTC BB:SRCO.OB - News), a leading provider of consumer financing and leasing solutions to the powersports industry, is expanding the asset classes eligible for its Municipal Leasing Program currently available to law enforcement agencies, thereby enabling Sparta to focus on a wider municipal leasing market, which the company believes has substantial potential over the next few years.

"In February 2007, we launched our new Municipal Leasing Program designed expressly to meet the need for police motorcycles among law enforcement agencies throughout the U.S., an annual market we estimate exceeds $300 million," stated Anthony Havens, CEO of Sparta Commercial Services, Inc. "At the request of these agencies, we have now added other asset classes to the eligible collateral that qualify for our Municipal Leasing Program. As an exhibitor at the Police Fleet Expo 2008 in Milwaukee last week, we met with various law enforcement officials and vendors who expressed the need to have the ability to lease these other classes of vehicles, in addition to motorcycles, such as all types of tactical and emergency service vehicles, patrol cars, helicopters, and other equipment now required by many jurisdictions around the country. We were also approached by certain specialty vehicle manufacturers asking us to provide terms to the budget constrained municipalities that were having trouble finding plans to meet their needs. We see this as a significant opportunity to further serve this market."

Havens concluded by saying, "We will be expanding the asset classes that will qualify to be leased to all levels of governmental agencies. We see the municipal market as a great opportunity for Sparta, given the advantage of these additional qualifying classes of assets that we now have and we look forward to aggressively serving that market and expect it to have a long term positive impact."

About Sparta Commercial Services

Sparta Commercial Services, Inc. (www.spartacommercial.com) is a national provider of financing solutions to the powersports industry. The company is currently the only nationwide full-service, independent, Web-based finance company offering a lease solution combined with the traditional retail purchase contract for the Powersports Industry. Headquartered in New York City, with its Dealer Support Group located in Houston, Texas, Sparta offers programs for manufacturers, distributors, and dealers. Sparta provides a full line of financing packages including indirect retail installment sales contracts and direct closed-end leases, as well as related services for individuals, fleets and municipal organizations.

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
      
     Investor Relations:
      
     Mark Moline
     Cinapsys, Inc.
     760-458-4899