SPAN-AMERICA REPORTS HIGHER EARNINGS
FOR FIRST QUARTER OF FISCAL 2002

 Declares Quarterly Dividend

GREENVILLE, S.C. (January 24, 2002) Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) today reported sales of $6.9 million and net income of $355,000, or 14 cents per diluted share, for the first fiscal quarter ended December 29, 2001.  The Company also announced a regular cash dividend of $0.03 per share, payable on March 4, 2002, to shareholders of record on February 15, 2002.

"Span-America's net income rose 8% to $355,000 in the first quarter and benefited from higher gross profit and increased royalties from product licensing," stated Jim Ferguson, president and chief executive officer of Span-America Medical Systems, Inc.  "Our sales for the quarter were down by 4% to $6.9 million compared with the same quarter last year.  This was mainly because last year's first quarter included higher than usual sales of medical overlays and patient positioners, as one of our distributors accelerated their purchases in advance of a scheduled price increase.  We expect that unusual comparison to reverse next quarter.

"Our gross profit margin increased significantly during the quarter because of a more profitable product mix in our medical business and lower overall material costs.  In addition, we introduced three new medical products in the first quarter and expect these to strengthen our market position for specialty mattresses and seating products.  Our new PressureGuard® Easy Air™ low-air-loss mattress raises the bar for product features and performance in this expanding market segment.  We plan to continue our focus on new product development for the medical and consumer markets.  In the custom products segment, sales of our consumer bedding products were up 14% during the quarter, thanks to the marketing and distribution efforts of our partner, Louisville Bedding Company."

First Quarter Results

Total net sales were $6.9 million in the first quarter of fiscal 2002 compared with $7.1 million in the same quarter last year. The decline was primarily related to lower sales of medical overlays and positioners that decreased 25% and 22%, respectively, from the first quarter of fiscal 2001.  The overlay and positioner sales declines, which were caused mostly by the unusual order patterns described above, are expected to reverse in the second fiscal quarter.  Sales of medical seating products were up 8% during the quarter, and medical mattress sales increased by 4%.  Within the medical mattress line, we are particularly pleased with sales of our powered products, which rose 115% during the quarter.  Medical sales also benefited from Selan® skin care products, which added $230,000 to first quarter sales; these products were not offered in the comparable quarter last year.  Total medical sales declined 6% in the first quarter to $4.4 million compared with $4.6 million last year.

Mr. Ferguson continued, "Sales in our custom products business were flat at $2.5 million in the first quarter compared with the year-earlier quarter.  Within that segment, sales of consumer foam products rose 14% to $1.9 million compared with $1.7 million in the first quarter of last year.  Most of this increase occurred in the Geo-Systems™ line of mattress pads that are sold through Louisville Bedding Company. However, sales of industrial products declined 26% during the quarter to $623,000, offsetting the higher consumer sales.  Most of the industrial sales decline was due to the loss of a customer who redesigned their product, eliminating the need for our component part.  We expect the industrial sales decline to level off and begin to grow again as the regional manufacturing economy improves.

"Span-America's gross profit increased 2% in the first quarter to $2.22 million compared with $2.18 million in the same period last year. In addition, our gross profit margin rose to 32.2% compared with 30.5% last year.  These improvements were due to a more profitable product mix in the medical segment and better raw material utilization, which resulted in lower overall material costs."

Operating income for the first quarter declined 5% to $345,000 from $364,000 in the first quarter of last year. Although administrative expenses were down 10% ($56,100) during the quarter, selling and marketing expenses rose 9% ($113,500) primarily due to higher shipping costs and increased product development costs.

Non-operating income rose 42% to $200,000 due to higher royalty income from a syringe product licensed to Becton Dickinson & Co. The increase in royalty income was partially offset by lower investment income which declined by 49% due to falling interest rates on the company's marketable securities.

Net income for the first quarter rose 8% to $355,000, or 14 cents a diluted share, compared with $327,000, or 13 cents a diluted share, last year.

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.

The Company has made forward-looking statements in this release, regarding management's expectations for future sales and earnings performance.  Management wishes to caution the reader that these statements are only predictions. Actual events or results may differ materially as a result of risks and uncertainties facing the Company including: (a) the loss of a major distributor of the Company's medical or custom products, (b) inability to achieve anticipated sales volumes of medical or custom products, (c) changes in relationships with large customers, (d) the impact of competitive products and pricing, (e) government reimbursement changes in the medical market, (f) FDA regulation of medical device manufacturing, (g) raw material cost increases; and (h) other risks referenced in the Company's Securities and Exchange Commission filings.  The Company disclaims any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.  Span-America Medical Systems, Inc. is not responsible for changes made to this document by wire services or Internet services.