SPAN-AMERICA REPORTS HIGHER SALES AND NET INCOME
 FOR SECOND QUARTER OF FISCAL 1997

DECLARES QUARTERLY DIVIDEND

Greenville, South Carolina (April 21, 1997) Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) today reported higher sales and net income for the second quarter and six months ended March 29, 1997. The Company also announced a regular cash dividend of $0.025 per share payable on June 4, 1997, to shareholders of record as of May 15, 1997.

Net sales for the second quarter increased 15% to $8.6 million compared with $7.5 million in the second quarter last year. Net income for the quarter rose to $399,000, or $0.12 per share, compared with a loss of $45,000, or $0.01 per share, in the second quarter of last year.

"We are pleased with the continued progress in improving our sales and earnings," stated Jim Ferguson, president and chief executive officer of Span-America Medical Systems, Inc. "Medical sales reached a three-year high during the second quarter and were up 13% over the second quarter last year. The growth in the medical segment came from mattress overlays, patient positioners, and static mattresses. Consumer sales posted another strong performance this quarter, rising 45% primarily from the continuation of a promotional program with a major retailer. Industrial sales rose 2% during the quarter, while contract packaging sales declined by 8%.

"Our improved earnings benefited from our higher sales volume, improved manufacturing efficiencies, and lower selling expenses. We were particularly pleased to see excellent results from our manufacturing cost reduction programs in the consumer business unit during the quarter. In addition, our SG&A expenses were down by 7% compared with the second quarter last year, mostly because of lower selling expenses in our medical and industrial segments. The combination of higher sales and lower expenses produced a significant improvement in earnings compared with the second quarter last year," stated Mr. Ferguson.

For the first two quarters of fiscal 1997, sales increased 12% to $16.3 million from $14.5 million in the same period last year. Earnings for the first half rose 219% to $749,000, or $0.23 per share, compared with earnings of $235,000, or $0.07 per share, for the first six months of fiscal 1996.

"We are committed to transforming Span-America into a profitable, growth-oriented company," continued Mr. Ferguson. "Our short-term goal has been to improve Span-America's earnings and to build a solid platform for future growth. We have been successful in achieving that goal so far, and we will continue efforts to improve Span-America's performance. Our next priority is to generate profitable sales growth for the Company's shareholders. We intend to be an innovator in developing and marketing health care products. We are optimistic that we can extend our medical product concepts and manufacturing capabilities to capitalize on profitable opportunities in the consumer and industrial markets," concluded Mr. Ferguson.

Span-America Medical Systems, Inc. manufactures and markets products to the health care 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.