Contact:
 Bruce J.
Haber
 (914)
235-5550, x. 12
 bhaber@primedical.net
 
 
 Emergent
Group Inc. Reports Record Second
 Quarter
Revenue and Net Income
  Revenue
and Net Income Rise 59% and 22%, Respectively, with
 EBITDA Up
70%
 
 SUN VALLEY, Calif., Aug.
5, 2009 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE Amex Equities: LZR), a
leading provider of mobile medical lasers and surgical equipment, today
announced record second quarter 2009 sales and net income as the company's
financial performance and sound growth strategies continued to stand out in a
challenging economic environment.
  Following are highlights
of the second quarter 2009 results:
 
 *
                Revenue increased
      59% to a record $7,788,765 for the second quarter ended June 30, 2009
      versus $4,901,549 in the prior year period ended June 30,
      2008.  This was the company's eighth consecutive quarter of
      revenue growth.
 *
                EBITDA (earnings
      before interest, taxes, depreciation and amortization) rose 70% to
      $2,126,000 versus $1,251,000 in the prior year
  period.
 *
                Income before income
      taxes and minority interest was up 52% to $1,606,451 versus the $1,056,830
      reported in the prior year period.
 *
                Net income increased
      22% to a record $869,064, or $0.12 per diluted share, compared with
      $711,368, or $0.12 per diluted share, reported in the prior year
      period.  There were 7,089,544 diluted weighted average shares
      outstanding for the second quarter of 2009 versus 5,981,569 in the prior
      year period.
 *
                The quarter included
      a provision for income taxes of $573,500 compared with $75,000 a year
      earlier.
 *
                Emergent has federal
      net operating loss carryforwards totaling $7,600,000 as of December 31,
      2008, which are available to offset taxable income for 2009 and subsequent
      periods.
 
 "Emergent Group continued
to benefit in the second quarter from sound management and growth strategies
that have made it a standout in the midst of a difficult economic landscape,"
said Chairman and CEO Bruce J. Haber. "As we've said in prior quarterly earnings
reports, we continue to look for growth opportunities in fiscal 2009. On May 27,
for example, we announced the acquisition of New York Cryosurgery Equipment LLC,
a physician partnership specializing in rentals of mobile cryosurgery equipment
and technicians to hospitals for treatment of prostate and renal cancer. This
transaction, although not material to our results, strengthened our presence in
the New York market and capitalized on upcoming federal rules limiting physician
ownership of equipment."
 
 Haber
noted that the company is also continuing to:
 
 *
                expand
      rentals of per-procedure medical equipment and sales ofaccompanying
      consumable items,
 *
                capitalize
      on the growing number of medical
procedures,
 *
                assist
      hospitals and physician groups to maximize cost-effectivemedical
      technology through rentals rather than purchases,
  and
 *
                present
      equipment manufacturers with new revenue streams bypartnering
      with them on rental
opportunities.
 
 "In late
June," Haber added, "we were pleased to see that EmergentGroup was
selected by Russell Investments for inclusion in its RussellMicrocap(r)
Index, which measures the performance of the U.S. equitymarket's
microcap segment and makes up less than 3% of that market.This was
yet another sign of the recognition Emergent Group isreceiving
for its success in navigating the current businessenvironment
and capitalizing on positive healthcare trends."
 
 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 i nformation,
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.
 
 (tables
and notes follow)
 
 
 Emergent
Group Inc. and Subsidiaries
 Condensed
Consolidated Balance Sheets


June
      30,
                      
                      
                      
                      December
      31,2009
                      
                      
                      
                      2008Current
      assetsCash
                      
                      $
                      3,890,331
                      
                      
                      $
                      4,586,107Accounts
      receivable, net of allowance fordoubtful
      accounts of $73,434 and $58,984
                      
                      
                      4,329,541
                      
                      
                      
                      3,759,834Inventory,
      net
                      
                      
                      833,863
                      
                      
                      
                      837,143Prepaid
      expenses
                      
                      
                      358,835
                      
                      
                      
                      231,763Deferred
      tax assets
                      
                      
                      986,000
                      
                      
                      
                      986,000Total
      current assets
                      
                      
                      10,398,570
                      
                      
                      
                      10,400,847Property
      and equipment, net of accumulateddepreciation
      and amortization of$8,213,809
      and $7,247,482
                      
                      
                      6,237,069
                      
                      
                      
                      6,070,228Goodwill
                      
                      
                      1,120,058
                      
                      
                      
                      1,120,058Deferred
      income taxes
                      
                      
                      478,881
                      
                      
                      
                      1,261,000Other
      intangible assets, net of accumulatedamortization
      of $260,065 and $226,997
                      
                      
                      377,584
                      
                      
                      
                      403,152Deposits
      and other assets
                      
                      
                      81,886
                      
                      
                      
                      84,934Total
      assets
                      
                      $
                      18,694,048
                      
                      
                      $
                      19,340,219LIABILITIES
      AND SHAREHOLDERS' EQUITYCurrent
      liabilitiesCurrent
      portion of capital leaseobligations
                      
                      $
                      1,933,566
                      
                      
                      $
                      1,909,057Dividends
      payable
                      
                      
                      --
                      
                      
                      
                      1,989,750Accounts
      payable
                      
                      
                      1,973,129
                      
                      
                      
                      1,538,797Accrued
      expenses and other liabilities
                      
                      
                      1,564,934
                      
                      
                      
                      1,997,312Total
      current liabilities
                      
                      
                      5,471,629
                      
                      
                      
                      7,434,916Capital
      lease obligations, net of currentportion
                      
                      
                      3,017,385
                      
                      
                      
                      3,344,820Total
      liabilities
                      
                      
                      8,489,014
                      
                      
                      
                      10,779,736Shareholders'
      equityPreferred
      stock, $0.001 par value,non-voting
      10,000,000 shares authorized,no
      shares issued and outstanding
                      
                      
                      --
                      
                      
                      
                      --Common
      stock, $0.04 par value, 100,000,000shares
      authorized 6,741,054 and 6,631,576shares
      issued and outstanding
                      
                      
                      269,639
                      
                      
                      
                      265,260Additional
      paid-in capital
                      
                      
                      16,339,098
                      
                      
                      
                      16,235,368Accumulated
      deficit
                      
                      
                      (7,068,311
                      )
                      
                      
                      (8,636,575
                      )Total
      Emergent Group equity
                      
                      
                      9,540,426
                      
                      
                      
                      7,864,053Minority
      Interest
                      
                      
                      664,608
                      
                      
                      
                      696,430Total
      shareholders' equity
                      
                      
                      10,205,034
                      
                      
                      
                      8,560,483Total
      liabilities and shareholders' equity
                      
                      $
                      18,694,048
                      
                      
                      $
                      19,340,219






Emergent
Group Inc. and Subsidiaries
 Condensed
Consolidated Statements of Income
 (Unaudited)
  
 Three
      Months Ended
                                            
                                            
                                            
                                            Six
      Months EndedJune
      30,
                                            
                                            
                                            
                                            June
      30,2009
                                            
                                            
                                            
                                            2008
                                            
                                            
                                            
                                            2009
                                            
                                            
                                            
                                            2008Revenue
                                            
                                            $
                                            7,788,765
                                            
                                            
                                            $
                                            4,901,549
                                            
                                            
                                            $
                                            15,123,808
                                            
                                            
                                            $
                                            9,405,838Cost
      of goods sold
                                            
                                            
                                            4,625,102
                                            
                                            
                                            
                                            2,690,183
                                            
                                            
                                            
                                            9,036,560
                                            
                                            
                                            
                                            5,316,017Gross
      profit
                                            
                                            
                                            3,163,663
                                            
                                            
                                            
                                            2,211,366
                                            
                                            
                                            
                                            6,087,248
                                            
                                            
                                            
                                            4,089,821Selling,
      general, and administrative expenses
                                            
                                            
                                            1,496,742
                                            
                                            
                                            
                                            1,131,241
                                            
                                            
                                            
                                            2,952,164
                                            
                                            
                                            
                                            2,255,094Income
      from operations
                                            
                                            
                                            1,666,921
                                            
                                            
                                            
                                            1,080,125
                                            
                                            
                                            
                                            3,135,084
                                            
                                            
                                            
                                            1,834,727Other
      income(expense) Interest
    expense, net
                                            
                                            
                                            (87,503
                                            )
                                            
                                            
                                            (63,704
                                            )
                                            
                                            
                                            (175,989
                                            )
                                            
                                            
                                            (126,136
                                            )Gain
      on disposal of property andequipment
                                            
                                            
                                            1,950
                                            
                                            
                                            
                                            28,937
                                            
                                            
                                            
                                            2,550
                                            
                                            
                                            
                                            28,937Other
      income, net
                                            
                                            
                                            25,083
                                            
                                            
                                            
                                            11,472
                                            
                                            
                                            
                                            30,260
                                            
                                            
                                            
                                            24,124Total
      other  income (expense)
                                            
                                            
                                            (60,470
                                            )
                                            
                                            
                                            (23,295
                                            )
                                            
                                            
                                            (143,179
                                            )
                                            
                                            
                                            (73,075
                                            )Income
      before provision for income taxes and minority
      interest
                                            
                                            
                                            1,606,451
                                            
                                            
                                            
                                            1,056,830
                                            
                                            
                                            
                                            2,991,905
                                            
                                            
                                            
                                            1,761,652Provision
      for income taxes
                                            
                                            
                                            (573,500
                                            )
                                            
                                            
                                            (75,000
                                            )
                                            
                                            
                                            (1,051,634
                                            )
                                            
                                            
                                            (135,500
                                            )Income
      before minority interest
                                            
                                            
                                            1,032,951
                                            
                                            
                                            
                                            981,830
                                            
                                            
                                            
                                            1,940,271
                                            
                                            
                                            
                                            1,626,152Minority
      interest in income of consolidated limited liability
      companies
                                            
                                            
                                            (163,887
                                            )
                                            
                                            
                                            (270,462
                                            )
                                            
                                            
                                            (372,007
                                            )
                                            
                                            
                                            (482,884
                                            )Net
      income
                                            
                                            $
                                            869,064
                                            
                                            
                                            $
                                            711,368
                                            
                                            
                                            $
                                            1,568,264
                                            
                                            
                                            $
                                            1,143,268Basic earningsper
      share
                                            
                                            $
                                            0.13
                                            
                                            
                                            $
                                            0.12
                                            
                                            
                                            $
                                            0.23
                                            
                                            
                                            $
                                            0.20Diluted
      earningsper share
                                            
                                            $
                                            0.12
                                            
                                            
                                            $
                                            0.12
                                            
                                            
                                            $
                                            0.22
                                            
                                            
                                            $
                                            0.19Basic
      weighted-average shares outstanding
                                            
                                            
                                            6,725,579
                                            
                                            
                                            
                                            5,725,802
                                            
                                            
                                            
                                            6,692,057
                                            
                                            
                                            
                                            5,688,150Diluted
      weighted-average shares
      outstanding
                                            
                                            
                                            7,089,544
                                            
                                            
                                            
                                            5,981,569
                                            
                                            
                                            
                                            7,048,247
                                            
                                            
                                            
                                            5,947,420