SPAN-AMERICA INCREASES CASH DIVIDEND
BY 33% PER SHARE
 

GREENVILLE, S.C. (August 3, 2006) – Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today the Board of Directors declared a quarterly cash dividend of $0.06 per share, a 33% increase from the previous cash dividend of $0.045 per share. The dividend is payable September 1, 2006, to shareholders of record on August 17, 2006.

"The increase in Span-America's cash dividend highlights our strong financial performance this year," stated James D. Ferguson, president and chief executive officer of SpanAmerica. "This marks our 67^th consecutive quarterly dividend payment and our 5^th dividend increase since fiscal year 2000. In addition to our quarterly dividends, shareholders were paid a $1 million special dividend in January 2005. Our Board of Directors is committed to building long-term shareholder value and we believe our cash dividend is an important part of this strategy."

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®, Isch-Dish®, and Selan® products. The Company also supplies custom foam and packaging products to the consumer and industrial markets. SpanAmerica's stock is traded on The NASDAQ Global Market under the symbol "SPAN."