SPAN-AMERICA ANNOUNCES STOCK REPURCHASE PROGRAM
Board Authorizes Repurchase of up to 5% of Outstanding Shares
GREENVILLE, S.C. (November 28, 2007) - Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today that the Board of Directors authorized the Company to repurchase up to 5% of its outstanding shares of common stock.
“We believe Span-America’s stock represents an attractive investment at recent prices,” stated James D. Ferguson, president and chief executive officer of Span-America. “We remain very positive about the Company’s future based on our strong suite of products in the core medical business and additional opportunities to grow our consumer sales. We believe the repurchase of our stock will take advantage of our strong capital position while highlighting our confidence in the future of the Company. We plan to use a combination of cash generated by operations and cash from our revolving credit facility as necessary to fund the stock repurchase.”
Span-America plans 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. Span-America's stock is traded on The NASDAQ Global Market under the symbol "SPAN." For more information, visit www.spanamerica.com.
Forward-Looking Statements
We have made forward-looking statements in this release regarding our expectations for future Company performance. We wish 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 our Company, including: (a) the expiration in May 2008 of our existing manufacturing agreement with Hill-Rom, (b) the loss of a key customer or distributor for our products, (c) the inability to achieve anticipated sales volumes of medical or custom products, (d) the potential for volatile pricing conditions in the market for polyurethane foam, (e) raw material cost increases, (f) the potential for lost sales due to competition from low-cost foreign imports, (g) changes in relationships with large customers, (h) the impact of competitive products and pricing, (i) government reimbursement changes in the medical market, (j) FDA regulation of medical device manufacturing and other risks referenced in our Securities and Exchange Commission filings. We disclaim any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. We are not responsible for changes made to this document by wire services or Internet services.
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