| *   | 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 revenuegrowth. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *   | 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 dilutedshare. |
|---------------|-------------------------------------------------------------------------------------------------------------------------|

| *   | 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. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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 |   |
|                                                              |   |   | 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 administrative 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 |   |