Exhibit 99.1

    Span-America Declares Special Cash Dividend of $5.00 Per Share


    GREENVILLE, S.C.--(BUSINESS WIRE)--April 17, 2007--Span-America
Medical Systems, Inc. (NASDAQ: SPAN) announced today that the Board of
Directors declared a special, one-time cash dividend of $5.00 per
share. The dividend is payable on June 6, 2007 to shareholders of
record on May 23, 2007. The special dividend will be paid in addition
to the regular quarterly dividend of $0.08 per share, which will have
the same record and payment dates. The dividend, totaling
approximately $13.9 million, will be funded with a combination of cash
generated from the liquidation of short-term investments and newly
acquired long-term debt.

    "We plan to use approximately $6 million of our cash combined with
new debt of approximately $7.9 million to fund the $5 per share
special cash dividend and the regular quarterly dividend," stated Jim
Ferguson, president and chief executive officer of Span-America. "Our
Board believes the timing for this dividend is very favorable to our
shareholders, considering the Company's excellent sales and earnings
performance, our strong cash position and attractive conditions in the
debt capital markets. We have the opportunity to provide an immediate
cash return to our shareholders while enabling them to continue to
participate in the Company's future growth. We believe the dividend
reflects our strong confidence in Span-America's business and future
cash flows while highlighting our commitment to enhance shareholder
value.

    "Span-America currently has no bank debt on its balance sheet. We
expect the addition of this modest amount of debt to create a more
efficient capital structure for the Company and improve our return on
equity capital, while preserving the flexibility to meet our future
capital needs and growth objectives. We expect to repay the principal
and interest from future cash flows.

    "Our outlook for Span-America remains very positive. We expect to
announce our second quarter financial results on April 30, 2007, and
we anticipate that our sales and earnings will exceed those of the
second quarter of last year due to growth in our core medical and
custom products businesses," concluded Mr. Ferguson.

    The total dividend payment of $5.08 per share will be
approximately $13.9 million based on 2,730,155 shares currently
outstanding. At March 31, 2007, the Company had approximately
$7.1 million in cash and securities available for sale. Payment of the
special dividend is subject to the Company's completion of
satisfactory financing arrangements. The new debt is expected to be
structured as a revolving credit facility. Interest expense for the
remainder of fiscal year 2007 is expected to be approximately $40,000
per month, beginning in June 2007. Interest expense in later periods
will depend on future interest and debt repayment rates.

    Span-America's common stock will begin trading on an ex-dividend
basis on June 7, 2007, the day after the payment date, in accordance
with NASDAQ listing rules. Shareholders who sell their shares on or
before the payment date of June 6, 2007 will also be selling their
right to receive the cash dividend of $5.08 per share. Shareholders
are advised to contact their financial advisor before selling their
shares.

    In conjunction with declaring the $5.08 per share dividend,
Span-America's Board of Directors also terminated the Company's
authorization to repurchase up to 100,000 shares of its common stock
that was previously announced on November 3, 2006. Span-America
repurchased a total of 2,510 shares of its common stock at an average
price of $14.30 per share prior to the termination of the repurchase
program.

    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(R), PressureGuard(R), Geo-Mattress(R), Span+Aids(R),
Isch-Dish(R), and Selan(R) 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

    The Company has made forward-looking statements in this release,
regarding management's expectations for future business conditions,
results of operations and cash flows. 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
the Company, including: (a) the potential for volatile pricing
conditions in the market for polyurethane foam, (b) the loss of a key
customer or distributor for the Company's products, (c) the inability
to achieve anticipated sales volumes of medical or custom products,
(d) raw material cost increases, (e) the degree of success achieved in
manufacturing and selling the Secure I.V. safety catheter product
line, (f) potential problems arising from having a sole source
contract manufacturer for the Secure I.V. product line, (g) the
potential for lost sales due to competition from low-cost foreign
imports, (h) changes in relationships with large customers, (i) the
impact of competitive products and pricing, (j) changes in government
reimbursement policies and regulations in the medical market, (k) FDA
regulation of medical device manufacturing and other risks referenced
from time to time in the Company's Securities and Exchange Commission
filings. The Company disclaims any obligation to update publicly any
forward-looking statement, whether as a result of new information,
future events or otherwise. Span-America Medical Systems, Inc. is not
responsible for changes made to this document by wire services or
Internet services.


    CONTACT: Span-America Medical Systems, Inc.
             Jim Ferguson, 864-288-8877 ext. 6912