Emergent Group Inc. Reports Third Quarter EPS of $0.08 on Record Sales With Increase of 26 Percent


GLENDALE, Calif., Nov. 14, 2006 (PRIMEZONE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today announced financial results for its third quarter ended September 30, 2006. Third quarter revenues increased 26% to $3,997,933, compared to revenues of $3,181,811 for the same period in 2005. Net income increased 11% to $445,765 or $0.08 per basic and diluted share for the quarter, compared to net income of $401,327 or $0.08 per basic and diluted share for the same period in 2005. For the nine months ended September 30, 2006 revenues increased 32% to $11,981,961, compared to $9,052,744 for the same period in 2005. Net income increased a dramatic 131% to $1,459,567 or $0.27 per basic share ($0.25 per diluted share) for the nine months, compared to net income of $631,884 or $0.13 per basic and diluted share for the same period in 2005.

"This quarter marks the fourth consecutive quarter of year over year profit growth," said Bruce J. Haber, Emergent Chairman and CEO. Mr. Haber added that "We are extremely pleased with the quarter and nine month financial results and are optimistic that we can continue to grow Emergent at a very healthy rate for the foreseeable future. We continue to evaluate acquisition and partnership opportunities in an effort to further accelerate growth."

Mr. Haber further remarked that "The Company competes in a vital and very fast growing marketplace as it provides modern technology to hospitals and physicians who might not otherwise have access to such equipment. We have excellent opportunities for growth as we add new product lines and expand our geographic penetration."

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 Sheet
                             (unaudited)
                                                      September 30,
                                                          2006
                                                      ------------
                         ASSETS
 Current assets

  Cash                                                $  1,029,979
  Accounts receivable, net of allowance for
   doubtful accounts of $22,225                          2,263,544
  Inventory, net of reserves of $77,207                    728,799
  Prepaid expenses                                         162,820
                                                      ------------
   Total current assets                                  4,185,142

 Property and equipment, net of accumulated
  depreciation and amortization of $4,259,004            3,893,452
 Deposits and other assets                                 134,774
 Goodwill                                                1,192,027
 Other intangible assets, net of accumulated
  amortization of $100,430                                 165,855
                                                      ------------
 Total assets                                         $  9,571,250
                                                      ============
              LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities
  Current portion of capital lease obligations        $    937,528
  Current portion of notes payable                         338,620
  Accounts payable                                         733,297
  Accrued expenses                                       1,488,665
                                                      ------------
   Total current liabilities                             3,498,110

 Capital lease obligations, net of current portion       1,554,450
 Notes payable, net of current portion                     156,250
                                                      ------------
   Total liabilities                                     5,208,810

 Minority interest                                         453,741

 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 5,460,789 shares issued and 
   outstanding                                             218,392
  Additional paid-in capital                            14,877,448
  Deferred compensation, net of accumulated
   amortization of $90,850                                (135,204)
  Accumulated deficit                                  (11,051,937)
                                                      ------------
   Total shareholders' equity                            3,908,699
                                                      ------------
  Total liabilities and shareholders' equity          $  9,571,250
                                                      ============


 EMERGENT GROUP INC.
 Consolidated Statements of Income

                       Three Months Ended        Nine Months Ended
                         September 30,             September 30,
                   ------------------------  ------------------------
                       2006         2005         2006         2005
                   -----------  -----------  -----------  -----------
                         (unaudited)               (unaudited)

 Revenue           $ 3,997,933  $ 3,181,811  $11,981,961  $ 9,052,744

 Cost of goods 
  sold               2,416,331    1,965,207    7,218,280    5,865,060
                   -----------  -----------  -----------  -----------
 Gross profit        1,581,602    1,216,604    4,763,681    3,187,684

 Selling,
  general, and
  administrative
  expenses           1,021,690      797,598    2,984,110    2,469,660
                   -----------  -----------  -----------  -----------
 Income from
  operations           559,912      419,006    1,779,571      718,024

 Other income
  (expense)              8,437       (1,232)      (1,877)       8,937
                   -----------  -----------  -----------  -----------
 Income before
  provision for
  income taxes
  and minority
  interest             568,349      417,774    1,777,694      726,961

 Provision for
  income taxes         (14,692)          --      (48,528)          --
                   -----------  -----------  -----------  -----------
 Net income
  before minority
  interest             553,657      417,774    1,729,166      726,961

 Minority
  interest in
  income of
  consolidated
  limited
  liability
  companies           (107,892)     (16,447)    (269,599)     (95,077)
                   -----------  -----------  -----------  -----------
 Net income        $   445,765  $   401,327  $ 1,459,567  $   631,884
                   ===========  ===========  ===========  ===========

 Basic earnings
  per share        $      0.08  $      0.08  $      0.27  $      0.13
 Diluted earnings
  per share        $      0.08  $      0.08  $      0.25  $      0.13

 Basic weighted-
  average shares
  outstanding        5,460,789    5,004,551    5,457,704    4,856,271
 Diluted weighted
  -average shares
  outstanding        5,822,186    5,071,024    5,809,343    4,921,764


            

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