Greenville, South Carolina (February 16, 1996) Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) today announced at the Company's annual meeting of shareholders that it has acquired a manufacturer of specialty wheelchair seating products and reached a nonexclusive supply agreement with Baxter Healthcare Corporation. The acquisition and supply agreement are expected to add approximately $3.0 million in annual sales.

"The acquisition of the Embracing Concepts line of specialty wheelchair seating products strengthens our commitment to expand our presence in the rehabilitation and home care markets," stated Charles B. Mitchell, president and chief executive officer of Span-America Medical Systems, Inc. "The new contract with Baxter is for privately labeled convoluted foam products and supports our goal of maintaining a broad-based distribution network for our medical products. The transition of the Baxter business should be completed by May 1996."

The acquisition of Embracing Concepts, Inc. (ECI) was completed effective February 8, 1996. ECI is a manufacturer of specialty wheelchair seating products sold in the home care and rehabilitation markets. ECI's President and majority owner, Edmund Maier, and his management team will join Span-America.

At the Company's annual meeting, shareholders elected the following directors to serve three-year terms: James M. Shoemaker, Jr.; Thomas F. Grady, Jr.; and J. Ernest Lathem, M.D. Dr. Lathem is a new director of Span-America, filling the seat held by W. Marcus Newberry, M.D. who retired from the Board of Directors following the expiration of his regular term. Thomas D. Henrion was elected to a one-year term, filling the unexpired term of Ray Tortolani who retired from the Board.

Span-America Medical Systems, Inc. manufactures and markets products to the healthcare industry for the prevention and treatment of pressure ulcers. The Company also is a manufacturer and marketer of foam and contract packaging products for the consumer and industrial markets. Span-America's stock is traded on The Nasdaq Stock Market's National Market under the symbol SPAN.