SPAN-AMERICA INCREASES CASH DIVIDEND

GREENVILLE, S.C. (November 4, 2002) -- Span-America Medical Systems, Inc. (Nasdaq: SPAN) announced today that the Board of Directors increased the Company's annualized cash dividend to 14 cents per share from 12 cents per share, an increase of 17%.  The dividend is equal to 3.5 cents per share on a quarterly basis. Additionally, the Board declared the quarterly dividend of 3.5 cents per share payable on December 4, 2002, to shareholders of record on November 15, 2002. 

"The increase in the cash dividend highlights the Company's improved performance over the last few years," stated James D. Ferguson, president and chief executive officer of Span-America.  "We recently reported a 15% increase in sales for fiscal 2002 to $33.5 million and a 32% increase in net income to $1.66 million, or 64 cents per diluted share, compared with the prior year.  We believe the increase in Span-America's cash dividend reflects the Board's confidence in the future of the Company."

About Span-America Medical Systems, Inc.

Span-America manufactures and markets a comprehensive selection of pressure management products for the medical market, including Geo-Matt®, PressureGuard®, Geo-Mattress®, Span+Aids®, and Isch-Dish® products.  The Company also supplies custom foam and packaging products to the consumer and industrial markets.  Span-America's stock is traded on The Nasdaq Stock Market's National Market under the symbol SPAN.