Greenville, South Carolina (February 18, 1998) -- Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) announced today that it has repurchased 280,579 shares, or 9.0%, of the Company's outstanding Common Stock in a private transaction from an unaffiliated shareholder. The purchase price was $7.70 per share, or approximately $2.16 million.

"We believe Span-America's stock represents a good value at current prices," stated Jim Ferguson, president and chief executive officer of Span-America Medical Systems, Inc. "The repurchased stock will be retired, which will reduce our outstanding shares to 2,833,659. This will have the effect of boosting future earnings per share on a comparable earnings basis.

"Span-America's strong financial position allowed us to repurchase the stock from existing funds. In addition, the Company's float will be unaffected by this transaction since the shares repurchased have been held by the seller for a number of years," concluded Mr. Ferguson.

Span-America Medical Systems, Inc. manufactures and markets products to the health care industry for the prevention and treatment of pressure ulcers. The Company also is a manufacturer and marketer of foam and contract packaging products for the consumer and industrial markets. Span-America's stock is traded on The Nasdaq Stock Market's National Market under the symbol SPAN.