SPAN-AMERICA TO EXPAND GREENVILLE PLANT BY 50%
GREENVILLE, S.C. – (November 12, 2004) – Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today plans to expand its
Greenville, S.C., plant by 60,000 square feet.
"The plant expansion is driven by our continued sales growth and opportunities to enhance our manufacturing operations," stated James D. Ferguson,
president and chief executive officer of Span-America. "The added space will be used to expand our production capacity, particularly for the medical mattress business. We also expect to gain operating
efficiencies by consolidating our operations into a single facility in Greenville."
The 60,000-square-foot addition to the Greenville plant is estimated to cost $2.5 to $3.0 million and construction will
take approximately nine months. The addition will adjoin the Company's existing 120,000-square-foot facility and will be used for new manufacturing and storage space. The Company also expects to
consolidate approximately 22,000 square feet of leased storage space that it currently has in the Greenville area. The lease will expire in 2005, near the planned completion date for the new facility.
"We believe the additional space will improve our manufacturing efficiency," continued Mr. Ferguson. "Our existing plant was built in 1987 and the new space will allow us to streamline our shipping
operations and respond faster to our customers' needs. In addition, it will provide us room to add new equipment that will help reduce material costs and improve margins."
Span-America also operates a
40,000-square-foot leased plant in California. At this time, the Company has no plans to expand the California facility.
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.
Forward-Looking Statements
The
Company has made forward-looking statements in this release, regarding management's expectations for improved operating efficiencies. Management wishes to caution the reader that these statements are only
predictions. Actual events or results may differ materially as a result of risks and uncertainties facing the Company including: (a) the loss of a key distributor of the Company's medical or custom
products, (b) inability to achieve anticipated sales volumes of medical or custom products, (c) raw material cost increases, (d) changes in relationships with large customers, (e) the inability to achieve sales and
cost targets for the Secure I.V. product line, (f) the impact of competitive products and pricing, (g) government reimbursement changes in the medical market, (h) FDA regulation of medical device manufacturing, and
other risks referenced in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to update publicly any forward-looking statement, whether as a result of new
information, future events or otherwise. Span-America Medical Systems, Inc. is not responsible for changes made to this document by wire services or Internet services. |