SPAN-AMERICA INCREASES CASH DIVIDEND BY 12.5%

GREENVILLE, S.C. – (August 4, 2005) – Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today that the Board of Directors increased the Company's quarterly cash dividend to $0.045 per share, a 12.5% increase from the previous quarterly dividend of $0.04 per share. The dividend is equal to $0.18 per share on an annualized basis. The cash dividend is payable on September 2, 2005, to shareholders of record on August 17, 2005.

"The increase in our cash dividend highlights Span-America's continued earnings growth and solid cash flow performance compared with last year," stated James D. Ferguson, president and chief executive officer of Span-America. "We believe our cash dividend is an important part in building long-term value for Span-America shareholders. This is the second consecutive annual increase in the cash dividend and follows the special dividend of $0.40 per share paid in January 2005. We have a strong balance sheet and will continue to review opportunities to provide additional return to our shareholders as our business conditions permit."

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. Span-America's stock is traded on The NASDAQ Stock Market's National Market under the symbol "SPAN." For more information, visit www.spanamerica.com.