SPAN-AMERICA REPORTS RECORD SALES FOR
FOURTH QUARTER OF FISCAL 1997

 Declares Quarterly Dividend

GREENVILLE, S.C.--Oct. 27, 1997--Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) today reported record fourth quarter sales of $9.1 million and net income of $464,000, or $.15 per share. In addition, the Company announced a regular cash dividend of $0.025 per share, payable on December 4, 1997, to shareholders of record as of November 17, 1997.

 Fourth Quarter Net Income Rises 197% to $464,000

 Net income for the fourth quarter rose 197% to $464,000, or $0.15 per share, compared with $156,000, or $0.05 per share, in the fourth quarter of fiscal 1996. Net sales for the fourth quarter of fiscal 1997 rose 11% to $9.1 million compared with the fourth quarter last year.

 "Span-America's net income benefited from record fourth quarter sales and reduced selling costs compared with the fourth quarter of last year," stated Jim Ferguson, president and chief executive officer of Span-America Medical Systems, Inc. "Our consumer products were the major contributors to our sales growth due to increased private label business and higher seasonal sales of convoluted foam mattress pads."

 Sales of medical products increased 3% in the fourth quarter of fiscal 1997 due to solid increases in the Company's high-end PressureGuard r turning mattress systems and patient positioners compared with the fourth quarter of the prior year. Contract packaging sales rose 6% and consumer sales increased 37% from the prior fourth quarter. Industrial sales declined 3% compared with the fourth quarter of last year.

 The Company's gross margin increased to 25.3% due to the higher sales volume and contributed to a 15% increase in gross profit to $2.3 million compared with the fourth quarter of fiscal 1996. Operating income for the fourth quarter rose 215% to $596,000 compared with $189,000 last year and benefited from a 16% reduction in selling expenses which was partly offset by higher marketing expenses.

 Year-End Results

 Sales increased 8% to a record $34.1 million in fiscal 1997 compared with $31.5 million in fiscal 1996. The Company's core medical sales rose 8% to $15.3 million, or 45% of total sales, consumer sales increased 22% to $9.1 million, industrial sales were up 2% to $3.3 million and contract packaging sales declined 4% to $6.4 million compared with fiscal 1996.

 Net income for fiscal 1997 rose 196% to $1.6 million, or $0.51 per share, compared with earnings of $545,000, or $0.17 per share, for fiscal 1996. The Company's improved earnings were due to higher sales volume combined with an 8% decrease in selling, marketing and administrative expenses compared with the prior year.

 New Product Introductions Expand Medical Product Lines

 The Company expanded its line of PressureGuard mattress products in the fourth quarter with the introduction of an entirely new mattress, the PressureGuard Site Select. The new mattress blends a combination of foam and air technology to provide programmable alternating pressure features to reduce patient bed sores. Users can program pressure in each of four zones through microprocessor controlled sensors and pumps. Span-America has targeted the acute care, long-term care and home care markets for sales of the new Site Select.

 The Company also reengineered its existing PressureGuard mattress line to include advanced design features that will enhance its performance over earlier models. A new line of retail medical foam products was also introduced recently that will be sold in home health care retail locations throughout the U.S.

 Lathem Elected Chairman of the Board

 The Board of Directors elected J. Ernest Lathem, M.D. as Chairman of the Board, beginning January 1, 1998. Dr. Lathem has served as Vice-Chairman of Span-America and succeeds Brien Laing who will continue to serve as a director until the 1999 Stockholders' Meeting when he will retire from the Board, having reached the Board's normal retirement age.

 Dr. Lathem has been a director of Span-America since 1996. He retired in 1993 from 28 years in the private practice of urological surgery in Greenville, South Carolina. He also serves as a director of Southern National Corporation and one of its subsidiaries, BB&T of South Carolina. Additionally, he serves as director of several closely held corporations.

 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.