Emergent Group Inc. Reports First Quarter EPS of $0.08 On Record Sales


SUN VALLEY, Calif., May 14, 2008 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, announced results for the first quarter ended March 31, 2008. First quarter revenues increased 3% to a record $4,504,289, compared to revenues of $4,382,808 for the same period in 2007. Net income was $431,900 or $0.08 per basic share for the first quarter, as compared to net income of $517,110 or $0.10 per basic share for the same period in 2007. The Company's cash position as of March 31, 2008 was $1,532,150 after payment of a $0.30 per share dividend ($1,686,095) in January 2008.

"The strong financial performance achieved by the Company last year continued into the first quarter of 2008 as we recorded our tenth consecutive quarter of year over year growth in sales," said Bruce J. Haber, Emergent Group Chairman and CEO. Mr. Haber added, "Last year's financial accomplishment and the transition to our new and more profitable BPH Platform (Benign Prostatic Hyperplasia, representing approximately 21% of annual sales in 2007) helped grow Emergent sales to record levels in the first quarter. Sales and profits were negatively impacted by the shift of the Easter holiday and physician vacation period this year to March versus April in 2007. We are confident that Emergent will deliver solid and growing financial results throughout the year."

About Emergent Group Inc.

Emergent Group Inc. through its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical") provides mobile laser and surgical equipment on a per procedure basis to hospitals, out-patient 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 California, Nevada, Colorado, Utah, and Arizona. For product and other information, visit PRI Medical's website, http://www.primedical.net.

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-KSB 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 Sheet

                                                            March 31,
                                                              2008
                                                          ------------
                                  ASSETS                   (Unaudited)

 Current assets
  Cash                                                    $  1,532,150
  Accounts receivable, net of allowance
   for doubtful accounts of $17,460                          2,286,493
  Inventory, net of reserves of $57,339                        544,640
  Prepaid expenses                                             181,530
  Deferred tax assets                                          915,488
                                                          ------------

        Total current assets                                 5,460,301

 Property and equipment, net of accumulated
   depreciation and amortization of $6,247,119               4,062,167
 Goodwill                                                    1,120,058
 Other intangible assets, net of accumulated
   amortization of $185,614                                     80,672
 Deposits and other assets                                      77,975
                                                          ------------
 Total assets                                             $ 10,801,173
                                                          ============

                    LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities
  Current portion of capital lease obligations            $  1,190,022
  Current portion of notes payable                              75,667
  Accounts payable                                             917,772
  Accrued expenses and other liabilities                     1,086,572
                                                          ------------
        Total current liabilities                            3,270,033

 Capital lease obligations, net of current portion           2,160,282
                                                          ------------
        Total liabilities                                    5,430,315

 Minority interest                                             639,106

 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 5,724,878 shares
     issued and outstanding                                    228,992
   Additional paid-in capital                               14,861,819
   Accumulated deficit                                     (10,359,059)
                                                          ------------
        Total shareholders' equity                           4,731,752
                                                          ------------

  Total liabilities and shareholders' equity              $ 10,801,173
                                                          ============


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

                                               Three Months Ended
                                                    March 31,
                                           ---------------------------
                                              2008             2007
                                           ----------       ----------
 Revenue                                   $4,504,289       $4,382,808
 Cost of goods sold                         2,625,834        2,567,105
                                           ----------       ----------
 Gross profit                               1,878,455        1,815,703

 Selling, general, and
  administrative expenses                   1,123,853        1,088,224
                                           ----------       ----------
 Income from operations                       754,602          727,479

 Other income (expense)
   Interest expense                           (62,432)         (51,804)
   Gain on disposal of property and 
    equipment                                      --            8,102
   Other income, net                           12,652           14,220
                                           ----------       ----------

        Total other income (expense)          (49,780)         (29,482)
                                           ----------       ----------
 Income before provision for income
  taxes and minority interest                 704,822          697,997
 Provision for income taxes                   (60,500)         (55,902)
                                           ----------       ----------
 Income before minority interest              644,322          642,095

 Minority interest in income of
  consolidated limited liability
  companies                                  (212,422)        (124,985)
                                           ----------       ----------

 Net income                                $  431,900       $  517,110
                                           ==========       ==========

 Basic earnings per share                  $     0.08       $     0.10
                                           ==========       ==========

 Diluted earnings per share                $     0.07       $     0.09
                                           ==========       ==========

 Basic weighted average shares 
  outstanding                               5,650,498        5,442,961
                                           ==========       ==========

 Diluted weighted-average shares 
  outstanding                               5,912,217        5,783,891
                                           ==========       ==========


            

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