Emergent Group Inc. Reports Fourth Quarter EPS of $0.07 on Sales Increase of 24 Percent


GLENDALE, Calif., March 29, 2006 (PRIMEZONE) -- Emergent Group Inc. (OTCBB:EMGP), a provider of mobile medical lasers and surgical equipment, today announced financial results for the fourth quarter and year ended December 31, 2005. Fourth quarter revenues increased 24% to $3,426,514, compared to revenues of $2,751,447 for the same period in 2004. Net income was $334,372 or $0.07 per basic share ($0.06 per diluted share) for the quarter, compared to a loss of ($48,516) or $(0.01) per share for the same period in 2004. For the year ended December 31, 2005 revenues increased 14% to $12,479,263, compared to revenues of $10,967,369 for 2004. Net income was $966,252 or $0.20 per basic share ($0.19 per diluted share) for 2005, compared to net income of $23,280 or $0.00 per share for 2004.

"Our operating results for the fourth quarter and full year reflect a significant turnaround from prior year results," commented Bruce J. Haber, Chairman and CEO. "We have worked hard to position PRI Medical Technologies, Inc. (our operating subsidiary) for future profitable growth. Our geographic reach has now expanded to six states with the addition of New York and Arizona in 2005."

"I am particularly pleased that in the past several months we have both made a strategic acquisition with the purchase of certain operating assets of Advantage Medical Services, LLC in November, 2005 and paid our first dividend of $0.10 per share in January, 2006. Our balance sheet remains strong and we continue to look for additional opportunities," continued Mr. Haber.

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, Arizona and New York. 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
                      Consolidated Balance Sheets

                                                  December 31,
                                          ----------------------------
                                              2005            2004
                                          ------------    ------------
        ASSETS

 Current assets
  Cash                                    $    585,377    $    351,595
  Accounts receivable, net of allowance
   for doubtful accounts of $20,487
   and $26,125                               1,891,413       1,429,155
  Inventory, net of reserves of
   $80,148 and $141,916                        617,596         372,744
  Prepaid expenses                             157,526         128,968
                                          ------------    ------------
   Total current assets                      3,251,912       2,282,462

 Property and equipment, net of
  accumulated depreciation and
  amortization of $3,878,680 and
  $2,931,943                                 2,467,923       1,896,309
 Goodwill                                    1,195,035         779,127
 Other intangible assets, net of
  accumulated amortization of
  $56,901 and $29,487                          209,384          76,798
 Deposits and other assets                     106,177          56,892
                                          ------------    ------------
 Total assets                             $  7,230,431    $  5,091,588
                                          ============    ============

    LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities
  Current portion of capital
   lease obligations                      $    490,061    $    347,558
  Current portion of notes payable             434,309         389,247
  Dividend payable to shareholders             512,861              --
  Line of credit                                    --         650,000
  Accounts payable                           1,238,296         565,136
  Accrued expenses                             992,579         684,244
                                          ------------    ------------
   Total current liabilities                 3,668,106       2,636,185

 Capital lease obligations, net of
  current portion                              454,155         269,269
 Notes payable, net of
  current portion                              378,139         291,229
                                          ------------    ------------
    Total liabilities                        4,500,399       3,196,683

 Minority interest                             339,421         181,928

 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
   5,451,631 and 4,744,551 shares issued
   and outstanding                             218,065         189,782
  Additional paid-in capital                14,815,571      14,488,090
  Deferred compensation, net of
   accumulated amortization of
   $32,329                                    (131,521)             --
  Accumulated deficit                      (12,511,504)    (12,964,895)
                                          ------------    ------------
    Total shareholders' equity               2,390,611       1,712,977
                                          ------------    ------------
  Total liabilities and
   shareholders' equity                   $  7,230,431    $  5,091,588
                                          ============    ============

 EMERGENT GROUP INC.
 Consolidated Statements of Operations

                           Year Ended            Three Months Ended
                           December 31,              December 31,
                    ------------------------  ------------------------
                        2005         2004         2005         2004
                    -----------  -----------  -----------  -----------
 Revenue            $12,479,263  $10,967,369  $ 3,426,514  $ 2,751,447
 Cost of goods sold   7,937,656    7,703,124    2,072,596    1,971,673
                    -----------  -----------  -----------  -----------
 Gross profit         4,541,607    3,264,245    1,353,918      779,774

 Selling, general,
  and administrative
  expenses            3,399,359    3,152,409      929,565      832,760
                    -----------  -----------  -----------  -----------
 Income from
  operations          1,142,248      111,836      424,353      (52,986)

 Other income
  (expense)               9,539       67,953          476       44,916
                    -----------  -----------  -----------  -----------
 Income before
  provision for
  income taxes and
  minority interest   1,151,787      179,789      424,829       (8,070)

 Provision for
  income taxes           27,007           --       27,007           --
                    -----------  -----------  -----------  -----------
 Net income before
  minority interest   1,124,780      179,789      397,822       (8,070)

 Minority interest
  in income of con-
  solidated limited
  liability
  companies            (158,528)    (156,509)     (63,450)     (40,446)
                    -----------  -----------  -----------  -----------
 Net income         $   966,252  $    23,280  $   334,372  $   (48,516)
                    ===========  ===========  ===========  ===========
  Basic earnings
   per share               0.20         0.00         0.07        (0.01)
  Diluted earnings
   per share               0.19         0.00         0.06        (0.01)

  Basic weighted-
   average shares
   outstanding        4,934,430    4,744,551    5,129,808    4,744,551
  Diluted weighted-
   average shares
   outstanding        5,189,648    4,744,551    5,385,026    4,744,551


            

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