SIGN FIVE-YEAR CONTRACT EXTENSION

GREENVILLE, S.C. (March 2, 1999)  Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) today announced the signing of a five-year extension to its Best Value Product (BVP) contract with Allegiance Healthcare Corporation. The agreement, which runs through December 2004, extends the contract originally put in place in June 1996.

 The granting of BVP status signals a mutual sales and marketing commitment between the two companies aimed at better serving the medical marketplace.

 "Extending our status as a BVP supplier represents a strong vote of confidence in our products and company from one of our most important business partners," stated Jim Ferguson, president and chief executive officer of Span-America. "We look forward to continuing both the high level of service that earned us BVP status and the benefits of our longstanding integration into the Allegiance system."

 Span-America Medical Systems, Inc. manufactures a comprehensive selection of pressure management products for the medical market, including Geo-Matt®, Span+Aids®, and Isch-Dish® products. The Company also is a manufacturer and marketer of custom foam and 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.

 For product information, visit the Company's home page on the Internet at
http://www.spanamerica.com

For investor information, press releases and corporate data, visit
http://www.irinfo.com/span