Span-America Awarded Federal Contract for Specialty Support Surfaces

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Span-America Awarded Federal Contract for Specialty Support Surfaces

Five-Year Contract to Generate Annual Sales of Approximately $4.0 Million

GREENVILLE, S.C.--(BUSINESS WIRE)-- Span-America Medical Systems, Inc. (NAS: SPAN) announced today that it has been awarded a contract with the federal government for ongoing purchases of the company's line of proprietary specialty support surface products. The contract with the Department of Veterans Affairs is for a five-year term and includes expected annual sales of approximately $4.0 million. Known officially as a Department of Veterans Affairs Federal Supply Schedule Award, the contract went into effect on October 1st and runs through September of 2017. It includes an optional extension through 2022.


"Span-America has been a valued supplier to Veterans Affairs ("VA") facilities across the nation for more than two decades," said Jim Ferguson, president and chief executive officer of Span-America Medical Systems. "We believe this contract highlights our success in providing high-quality products to the Department of Veterans Affairs and the potential to expand our sales to them in the future. We are gratified that Span-America's products are recognized as an important part of delivering superior care to our nation's veterans."

Ferguson said the VA contract represents approximately $4.0 million of ongoing business annually, and he expects sales to grow in the coming years as more facilities embrace Span-America's newest technologies, including its proprietary line of PressureGuard® powered and non-powered air support surface products.

"Our Geo-Mattress® and PressureGuard products are always at the top of the list for veterans being treated in the home setting because of their ease of use, stability and effectiveness," said Heather Hayes, Span-America's director of corporate accounts. "However, the flexibility and safety features of our new CustomCare® convertible surfaces have really opened doors on the in-patient side of the VA as well." In addition to the new support surface contract, Hayes noted that Span-America recently renewed its contract to provide specialty seating products to the VA for another five years, taking it through May 31, 2017.

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®, Custom Care®, Span+Aids®, Isch-Dish®, Risk Manager® and Selan® products. We also supply custom foam and packaging products to the consumer and industrial markets. Through our wholly-owned subsidiary Span Medical Products Canada Inc., we manufacture and market the M.C. Healthcare Products brands of Maxxum, Advantage and Rexx bed frames as well as related case goods, tables and seating products for the long-term care market. Span-America's stock is traded on The NASDAQ Global Market under the symbol "SPAN." For more information, visit www.spanamerica.com and www.mchealthcare.com.

Forward-Looking Statements

We have made forward-looking statements in this release regarding our expectations for future sales performance. We wish to caution the reader that these statements are only predictions. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as "will," "intends," "may," "believes," "anticipates," "should" and "expects," and are based on the company's current expectations or beliefs concerning future events that involve risks and uncertainties. Actual events or results may differ materially as a result of risks and uncertainties facing the company, including: (a) changes in purchasing patterns or procurement rules at VA facilities, (b) changes in funding levels for the VA, (c) increased competition among suppliers to the VA and (d) changes in demand for specialty support surfaces and related products at VA facilities.



Span-America Medical Systems, Inc.
Jim Ferguson, 864-288-8877, ext. 6912
President and Chief Executive Officer

KEYWORDS:   United States  North America  South Carolina

INDUSTRY KEYWORDS:

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