SPAN-AMERICA ANNOUNCES 100,000 SHARE STOCK REPURCHASE PROGRAM
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Declares Quarterly Cash Dividend
GREENVILLE, S.C. (November 3, 2006) – Span-America Medical Systems, Inc. (NASDAQ: SPAN) today announced that the Board of Directors authorized
the Company to repurchase up to 100,000 shares of its common stock. The Board also declared a quarterly cash dividend of $0.06 per share. The dividend is payable December 4, 2006, to shareholders of
record on November 17, 2006. This is the Company's 68th consecutive quarterly dividend and represents a 33% increase from the $0.045 per share paid in December of last year.
"We believe the
quarterly dividend and stock repurchase program will be effective parts of our overall strategy to build long-term shareholder value," stated James D. Ferguson, president and chief executive officer of
SpanAmerica. "We expect the stock repurchase to further leverage our strong capital position while highlighting our confidence in the future of the Company. We plan to use our cash-on-hand or operating
cash flow to fund the stock repurchase."
Span-America plans in its sole discretion to buy shares from time to time in the open market or in private transactions, depending on market conditions. The
timing and actual number of shares repurchased will depend on a variety of factors including the stock price, corporate and regulatory requirements and other market and economic conditions. The stock repurchase
program may be suspended or discontinued at any time.
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."
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