SUN VALLEY, Calif., Nov. 4, 2009 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE Amex Equities:LZR), a leading provider of mobile medical lasers and surgical equipment, today announced record third quarter 2009 sales and net income as the company continued to move forward with its growth strategies despite the current general economic climate.

Following are financial highlights for the quarter ended September 30, 2009:



 * Revenue increased 25% to a record $7,981,464 versus $6,394,974 for
   the prior year's third quarter ended September 30, 2008.  This was
   the company's ninth consecutive quarter of revenue growth.
 * EBITDA (earnings before interest, taxes, depreciation and
   amortization) rose 42% to $2,101,177 versus $1,483,698 in the prior
   year period.
 * Income before income taxes and minority interest was up 50% to
   $1,608,679 versus the $1,074,266 reported in the prior year period.
 * Net income increased 12% to $830,656, or $0.12 per diluted share,
   compared with $741,810, or $0.11 per diluted share, reported in the
   prior year's third quarter.  The comparison includes a provision
   for income taxes of $553,000 in the most recent quarter versus
   $77,792 a year earlier, a difference of $0.07 per diluted share
   attributed to the reversal of a deferred tax valuation allowance in
   the fourth quarter of 2008.  Diluted weighted average shares
   outstanding were also higher in the current quarter at 7,089,598
   versus 6,606,416 for the prior year period.
 * Emergent had federal net operating loss carryforwards totaling
   $7,600,000 as of December 31, 2008, which have been available to
   offset taxable income for 2009 and subsequent periods.
 * At the end of the quarter, the company had a cash balance of
   $5,957,808, amounting to $0.84 per diluted share.

"Emergent Group reported yet another solid quarter, with significant gains in revenue, net earnings and EBITDA," said Chairman and CEO Bruce J. Haber. "We continue to be an aggressive player in technician-assisted equipment rentals and the sales of accompanying consumable items. We are capitalizing on the growing need for certain medical procedures and the desire of hospitals and physician groups to conserve cash and reduce expenses by turning to rentals instead of equipment purchases and staff increases. And we continue to help manufacturers find new revenue streams by partnering with our strong sales force to find new rental opportunities and sales of related consumable products. Our business model -- generating strong cash flow with a focus on prudent management of cash and other resources -- has allowed us to expand our competitive position, reduce our debt, increase our cash balances and pay shareholders a cumulative dividend of $ 0.90 per share over the last four years. We look forward to another good year for Emergent Group in 2009 and sound prospects for the future."

Emergent Group reported these results for the first nine months of 2009:



 * Revenue increased 46% to $23,105,272 for the nine months ended
   September 30, 2009 versus $15,800,812 in the prior year period
   ended September 30, 2008.
 * EBITDA (earnings before interest, taxes, depreciation and
   amortization) rose 64% to $6,055,785 versus $3,682,238 in the prior
   year period.
 * Income before income taxes and minority interest was up 62% to
   $4,600,583 versus the $2,835,918 reported in the prior year period.
 * Net income increased 27% to $2,398,919, or $0.34 per diluted share,
   compared with $1,885,078, or $0.30 per diluted share, reported in
   the prior year period.  The comparison includes a provision for
   income taxes of $1,604,634 for the nine months ended September 30,
   2009 versus $213,472 a year earlier. There were 7,059,774 diluted 
   weighted average shares outstanding for the nine months versus 
   6,284,005 in the prior year period.

About Emergent Group Inc.

Emergent Group Inc., through its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical"), provides mobile medical laser and surgical equipment in 16 states on a per-procedure basis to hospitals, outpatient surgery centers and physicians' offices. Surgical equipment is provided to customers along with technical support personnel to ensure that such equipment is operating correctly. PRI Medical currently offers its services in five states in the western United States and 11 states along the eastern seaboard. Emergent Group Inc. is a member of the Russell Microcap(R) Index. For investor and product information, visit Emergent Group's website, www.emergentgroupinc.com.

Forward-Looking Statements

Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's most recent report on Form 10-K and subsequently filed SEC reports. There is no assurance any forward-looking statements will prove accurate, as actual results and future events could differ materially from those presently anticipated.



                 Emergent Group Inc. and Subsidiaries
                 Condensed Consolidated Balance Sheets

                                           September 30,  December 31,
                                               2009           2008
                                           ------------- -------------
                ASSETS                      (Unaudited)

 Current assets
   Cash                                    $  5,957,808  $  4,586,107
   Accounts receivable, net of allowance
    for doubtful accounts of $80,400 and
    $58,984                                   4,305,605     3,759,834
   Inventory, net                               834,828       837,143
   Prepaid expenses                             321,092       231,763
   Deferred income
    taxes                                       506,923       986,000
                                           ------------- -------------
     Total current assets                    11,926,256    10,400,847

 Property and equipment, net of accumulated
  depreciation and amortization of
  $8,500,276 and $7,247,482                   5,787,670     6,070,228
 Goodwill                                     1,120,058     1,120,058
 Deferred income taxes                          522,955     1,261,000
 Other intangible assets, net of
  accumulated amortization of $276,912 and
  $226,997                                      482,454       403,152
 Deposits and other assets                       81,094        84,934
                                           ------------- -------------
 Total assets                              $ 19,920,487  $ 19,340,219
                                           ============= =============

   LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities
   Current portion of capital lease
    obligations                            $  1,911,641  $  1,909,057
   Dividends payable                                 --     1,989,750
   Accounts payable                           1,825,009     1,538,797
   Accrued expenses and other liabilities     2,256,561     1,997,312
                                           ------------- -------------
     Total current liabilities                5,993,211     7,434,916

 Capital lease obligations, net of current
  portion                                     2,768,261     3,344,820
                                           ------------- -------------
     Total liabilities                        8,761,472    10,779,736
                                           ------------- -------------

 Shareholders' equity
   Preferred stock, $0.001 par value, non-
    voting 10,000,000 shares authorized, no
    shares issued and outstanding                    --            --
   Common stock, $0.04 par value,
    100,000,000 shares authorized
    6,746,296 and 6,631,576 shares issued
    and outstanding                             269,849       265,260
   Additional paid-in capital                16,403,768    16,235,368
   Accumulated deficit                       (6,237,655)   (8,636,575)
                                           ------------- -------------
     Total Emergent Group equity             10,435,962     7,864,053
   Minority Interest                            723,053       696,430
                                           ------------- -------------
     Total shareholders' equity              11,159,015     8,560,483
                                           ------------- -------------

 Total liabilities and shareholders'
  equity                                   $ 19,920,487  $ 19,340,219
                                           ============= =============


                 Emergent Group Inc. and Subsidiaries
             Condensed Consolidated Statements of Income
                              (Unaudited)

                       Three Months Ended        Nine Months Ended
                           September 30,           September 30,
                   ------------------------- -------------------------
                       2009         2008         2009         2008
                   ------------ ------------ ------------ ------------

 Revenue           $ 7,981,464  $ 6,394,974  $23,105,272  $15,800,812

 Cost of goods sold  4,802,495    3,751,747   13,839,056    9,067,764
                   ------------ ------------ ------------ ------------

 Gross profit        3,178,969    2,643,227    9,266,216    6,733,048

 Selling, general,
  and administra-
  tive expenses      1,490,174    1,498,459    4,442,338    3,753,553
                   ------------ ------------ ------------ ------------
 Income from
  operations         1,688,795    1,144,768    4,823,878    2,979,495

 Other income
  (expense)
   Interest
    expense, net       (85,692)     (79,800)    (261,681)    (205,936)
   Gain on disposal
    of property and
    equipment            5,500           --        8,050       28,937
   Other income,
    net                     76        9,298       30,336       33,422
                   ------------ ------------ ------------ ------------

     Total other
      income
      (expense)        (80,116)     (70,502)    (223,295)    (143,577)
                   ------------ ------------ ------------ ------------

 Income before
  provision for
  income taxes and
  minority interest  1,608,679    1,074,266    4,600,583    2,835,918
 Provision for
  income taxes        (553,000)     (77,972)  (1,604,634)    (213,472)
                   ------------ ------------ ------------ ------------
 Income before
  minority interest  1,055,679      996,294    2,995,949    2,622,446

 Minority interest
  in income of
  consolidated
  limited liability
  companies           (225,023)    (254,484)    (597,030)    (737,368)
                   ------------ ------------ ------------ ------------

 Net income        $   830,656  $   741,810  $ 2,398,919  $ 1,885,078
                   ============ ============ ============ ============

 Basic earnings per
  share            $      0.12  $      0.12  $      0.36  $      0.32
                   ============ ============ ============ ============

 Diluted earnings
  per share        $      0.12  $      0.11  $      0.34  $      0.30
                   ============ ============ ============ ============

 Basic weighted-
  average shares
  outstanding        6,745,663    6,183,074    6,710,175    5,856,867
                   ============ ============ ============ ============

 Diluted weighted-
  average shares
  outstanding        7,089,598    6,606,416    7,059,774    6,284,005
                   ============ ============ ============ ============
Emergent Group Inc.
Bruce J. Haber
(914) 235-5550, x. 12