**Exhibit      99.1**

**For        Immediate Release**

**Emergent        Group Inc. Reports Record Third Quarter Sales and EPS of        $0.08**

**Quarter        Results Show Strong Operating Gain**

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| **Emergent                  Group Inc. and Subsidiaries** |
|-----------------------------------------------------------|
| **Condensed                  Consolidated Balance Sheet** |

|                                                                                                                             |   |                               |       |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|
|                                                                                                                             |   | **September                  30,** |       |
|                                                                                                                             |   | **2007**                           |       |
| **ASSETS**                                                                                                                       |   | (Unaudited)                        |       |
|                                                                                                                             |   |                               |       |
| **Current                  assets**                                                                                              |   |                               |       |
| Cash                                                                                                                             |   | $                                  | 1,942,322  |   |
| Accounts                  receivable, net                                                                                        |   |                               | 2,282,471  |   |
| Inventory                                                                                                                        |   |                               | 475,490    |   |
| Prepaid                  expenses                                                                                                |   |                               | 223,807    |   |
| Deferred                  tax assets                                                                                             |   |                               | 905,400    |   |
|                                                                                                                             |   |                               |       |   |
| Total                  current assets                                                                                            |   |                               | 5,829,490  |   |
|                                                                                                                             |   |                               |       |   |
| **Property                  and equipment, net of accumulated depreciation and **amortization                  of $5,577,501**** |   |                               | 4,392,797  |   |
| **Goodwill**                                                                                                                     |   |                               | 1,120,058  |   |
| **Other                  intangible assets, net of accumulated amortization of **$158,470****                                    |   |                               | 107,816    |   |
| **Deposits                  and other assets**                                                                                   |   |                               | 109,066    |   |
|                                                                                                                             |   |                               |       |   |
|                                                                                                                             |   |                               |       |   |
| **Total                  assets**                                                                                                |   | $                                  | 11,559,227 |   |
|                                                                                                                             |   |                               |       |   |
| **LIABILITIES                  AND SHAREHOLDERS' EQUITY**                                                                        |   |                               |       |   |
|                                                                                                                             |   |                               |       |   |
| **Current                  liabilities**                                                                                         |   |                               |       |   |
| Current                  portion of capital lease obligations                                                                    |   | $                                  | 1,009,878  |   |
| Current                  portion of notes payable                                                                                |   |                               | 101,859    |   |
| Accounts                  payable                                                                                                |   |                               | 1,033,971  |   |
| Accrued                  expenses and other liabilities                                                                          |   |                               | 1,235,640  |   |
|                                                                                                                             |   |                               |       |   |
| Total                  current liabilities                                                                                       |   |                               | 3,381,348  |   |
|                                                                                                                             |   |                               |       |   |
| **Capital                  lease obligations**, net of current portion                                                           |   |                               | 2,121,644  |   |
| **Notes                  payable**, net of current portion                                                                       |   |                               | 25,222     |   |
|                                                                                                                             |   |                               |       |   |
| Total                  liabilities                                                                                               |   |                               | 5,528,214  |   |
|                                                                                                                             |   |                               |       |   |
| **Minority                  interest**                                                                                           |   |                               | 558,580    |   |
|                                                                                                                             |   |                               |       |   |
| **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                                                    |   |                               |       |   |
| 5,569,569                  shares issued and outstanding                                                                         |   |                               | 222,799    |   |
| Additional                  paid-in capital                                                                                      |   |                               | 14,814,322 |   |
| Accumulated                  deficit                                                                                             |   |                               | (9,564,688 | ) |
|                                                                                                                             |   |                               |       |   |
| Total                  shareholders' equity                                                                                      |   |                               | 5,472,433  |   |
|                                                                                                                             |   |                               |       |   |
| ** Total                  liabilities and shareholders' equity**                                                            |   | $                                  | 11,559,227 |   |
|                                                                                                                             |   |                               |       |   |

----

| **Emergent                  Group Inc. and Subsidiaries**          |
|--------------------------------------------------------------------|
| **Condensed                  Consolidated Statements of Income**   |
| **(Unaudited)**                                                    |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                               |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                               |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| **Revenue**                                                        |   | $ | 4,467,011 |   |   | $ | 3,997,933 |   |   | $ | 13,181,307 |   |   | $ | 11,981,961 |   |
| **Cost                  of goods sold**                            |   |   | 2,685,863 |   |   |   | 2,416,331 |   |   |   | 7,876,615 |   |   |   | 7,218,280 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Gross                  profit**                                  |   |   | 1,781,148 |   |   |   | 1,581,602 |   |   |   | 5,304,692 |   |   |   | 4,763,681 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Selling,                  general, and administrative expenses** |   |   | 1,036,272 |   |   |   | 1,021,690 |   |   |   | 3,224,372 |   |   |   | 2,984,110 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  from operations**                        |   |   | 744,876 |   |   |   | 559,912 |   |   |   | 2,080,320 |   |   |   | 1,779,571 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  income (expense)**                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense                                  |   |   | (54,208 | ) |   |   | (39,466 | ) |   |   | (165,810 | ) |   |   | (128,710 | ) |
| Gain                  on disposal of property and equipment        |   |   | - |   |   |   | 15,502 |   |   |   | 8,214 |   |   |   | 18,192 |   |
| Other                  income, net                                 |   |   | 512 |   |   |   | 32,401 |   |   |   | 36,604 |   |   |   | 108,641 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  other income (expense)                      |   |   | (53,696 | ) |   |   | 8,437 |   |   |   | (120,992 | ) |   |   | (1,877 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  before provision for income taxes**      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **and                  minority interest**                         |   |   | 691,180 |   |   |   | 568,349 |   |   |   | 1,959,328 |   |   |   | 1,777,694 |   |
| **Provision                  for income taxes**                    |   |   | (39,086 | ) |   |   | (14,692 | ) |   |   | (134,498 | ) |   |   | (48,528 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  before minority interest**               |   |   | 652,094 |   |   |   | 553,657 |   |   |   | 1,824,830 |   |   |   | 1,729,166 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Minority                  interest in income of consolidated**   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **limited                  liability companies**                   |   |   | (221,646 | ) |   |   | (107,892 | ) |   |   | (516,066 | ) |   |   | (269,599 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  income**                                    |   | **$** | **430,448** |   |   | **$** | **445,765** |   |   | **$** | **1,308,764** |   |   | **$** | **1,459,567** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                  earnings per share**                      |   | **$** | **0.08** |   |   | **$** | **0.08** |   |   | **$** | **0.24** |   |   | **$** | **0.27** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                  earnings per share**                    |   | **$** | **0.07** |   |   | **$** | **0.08** |   |   | **$** | **0.22** |   |   | **$** | **0.25** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                  weighted average shares outstanding**     |   | ** ** | **5,566,448** |   |   | ** ** | **5,460,789** |   |   | ** ** | **5,518,920** |   |   | ** ** | **5,457,704** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                  weighted-average shares outstanding**   |   | ** ** | **5,873,137** |   |   | ** ** | **5,822,186** |   |   | ** ** | **5,825,085** |   |   | ** ** | **5,809,343** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |