SPAN-AMERICA SIGNS EXCLUSIVE LICENSING AGREEMENT
WITH P.J. NOYES COMPANY
GREENVILLE, S.C. (December 21, 2000) -- Span-America Medical Systems, Inc. (Nasdaq/NM: SPAN), announced that it formed an exclusive distribution and licensing
agreement with P.J. Noyes Company, Inc., a contract manufacturer and packager of OTC health and beauty aids and dietary supplements. The agreement, which is effective January 1, 2001, grants Span-America the
exclusive rights to sell and market P.J. Noyes' Selan® product line - a complete line of skin care products for the treatment and prevention of dry skin, diaper rash and pressure wounds.
Sales of Selan products last year were approximately $900,000. Span-America will assume responsibility for current Selan customers in addition to offering the
products to Span-America customers and prospects throughout North America. Span-America will pay an annual license fee for the right to sell the products, and P.J. Noyes will continue to manufacture the Selan
line for Span-America. The initial term of the agreement is five years with an option to renew under certain conditions.
"This product line represents a natural complement to our core business that is focused health care products dedicated to pressure management," said Jim Ferguson,
president and CEO of Span-America. "We view this agreement as one that expands our market base and enhances our opportunities for long-term growth and profitability."
"This addition of the Selan product line represents our commitment to preventing wounds before they begin," said Clyde Shew, VP of sales and marketing for
Span-America. "Our message is being well received by long-term care customers currently under tremendous budgetary pressures."
The market for wound care products is estimated to be approximately $1.74 billion and will grow to $2.57 billion by 2002, according to a recent study by Frost and
Sullivan, a national marketing consulting company. The report also highlighted the cost of treating chronic wounds, which is estimated at $5 to $7 billion per year in the U.S. These wounds are increasing
at a rate of 10% per year.
"We believe Span-America is the perfect partner to market and distribute the Selan line," said David Hill, president of P.J. Noyes Company. "Their
reputation in the medical industry, extensive pressure-management product line and strong distribution network will contribute to the continued success of the product line."
About Span-America Medical Systems
For more than 25 years, Span-America Medical Systems has offered the industry's most comprehensive line of specialty solutions for pressure management and patient
positioning. Recognized in medical facilities throughout North America, Span-America's clinically proven product lines include PressureGuard® and Geo-Mattress® therapeutic mattress systems;
Geo-Matt® overlays and seat cushions; Span+Aids® patient positioners; and Isch-Dish® wound care seating products. Span-America's stock is traded on The Nasdaq Stock Market's National Market under
the symbol SPAN. For more information, contact the company at (800) 888-6752, via e-mail at info@spanamerica.com, or write to Span-America Medical Systems, Inc., PO Box 5231, Greenville, SC. 29606-5231.
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