SPAN-AMERICA SELECTED BY CANADA'S LARGEST
      MEDICAL PRODUCTS DISTRIBUTOR

GREENVILLE, S.C. (October 20, 1999) -- Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) was named a Best Value Supplier by Source Medical Corporation, Canada's leading medical products distributor.

 With Best Value status in the category of pressure management, Span-America will be the provider of choice for products including specialty treatment and prevention mattresses, therapeutic overlays, seating products, and patient positioners. In these categories, Source Medical's customers and sales force will receive strong incentive toward the selection of Span-America products.

Source Medical is Canada's largest medical products distributor with more than 600 employees, 700,000 square feet of distribution space, and 75 sales and marketing professionals across the country. The company was formed from the 1997 merger of MDS Ingram & Bell and Allegiance Healthcare Canada.

No duration for the agreement is specified, but it is extendable indefinitely based on the mutual agreement of Source Medical and Span-America.

 Clyde Shew, Span-America's vice-president of sales and marketing, said, "Best Value Suppliers are selected based on a variety of factors, including strength and breadth of product lines, level of sales and marketing support, shipping efficiency, and electronic data exchange capabilities.

"Source Medical is the premiere sales and distribution player in Canada, and we have worked very closely with them to become the preferred vendor for pressure management products. We believe our new status as Best Value Supplier will strengthen our excellent working relationship with Source Medical."

 Span-America manufactures and markets a comprehensive selection of pressure management products for the medical market, including Geo-Matt®, PressureGuard®, Span+Aids®, and Isch-Dish® 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.

 

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