Emergent Group Inc. Reports Profit of $0.50 per Share for Fiscal Year 2006 On Record Sales


SUN VALLEY, Calif., March 27, 2007 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today reported record results for the fiscal year ended December 31, 2006. Net income for the year totaled $2,723,967 or $0.50 per common share compared with $966,252 or $0.20 per common share for 2005. Full year revenues were $15,929,243 up 28% from the $12,479,263 reported for 2005.

For the Quarter ended December 31, 2006 the Company reported revenues of $3,947,282 up 15% from the $3,426,514 reported for the comparable period in 2005. Net income was $1,264,400 or $0.23 per common share compared to net income of $334,372 or $0.07 per common share for the comparable period in 2005. Results for the year and quarter include a non-cash deferred tax benefit of $905,400 or $0.16 per share for the quarter ended December 31, 2006, resulting from an adjustment to our reserve on net operating loss carryforwards.

"We are extremely pleased with the financial results and performance of Emergent Group during 2006. We achieved dramatic and record gains in both net income and revenues," said Emergent Group Chairman Bruce J. Haber.

Mr. Haber added, "Our strategic priorities continue to deliver growth that is well in excess of the industry and will provide a unique platform to continue a very healthy growth rate for the future. Emergent Group's profit for 2006 was extremely strong, with and without the deferred tax benefit, and reflects both the addition of new products and increased geographic penetration. We look forward to another outstanding performance for Emergent Group in 2007."

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,
                                              2006            2005
                                         -------------- --------------
                                ASSETS

 Current assets

   Cash                                    $  1,318,612   $    585,377
   Accounts receivable, net of allowance
     for doubtful accounts of $19,478
     and $20,487                              2,385,234      1,891,413
   Inventory, net of reserves of $63,408
     and $80,148                                819,591        617,596
   Prepaid expenses                             151,897        157,526
   Deferred tax assets                          905,400             --
                                         -------------- --------------
       Total current assets                   5,580,734      3,251,912

 Property and equipment, net of accumulated
   depreciation and amortization of
   $4,570,113 and $3,878,680                  3,918,767      2,467,923
 Goodwill                                     1,120,058      1,195,035
 Other intangible assets, net of accumulated
   amortization of $114,940 and $56,901         151,345        209,384
 Deposits and other assets                      159,330        106,177
                                         -------------- --------------
 Total assets                              $ 10,930,234   $  7,230,431
                                         ============== ==============





                 LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities

   Current portion of capital lease
     obligations                           $    915,230   $    490,061
   Current portion of notes payable             238,186        434,309
   Dividend payable to shareholders           1,094,249        512,861
   Accounts payable                             750,040      1,238,296
   Accrued expenses                           1,436,385        992,579
                                         -------------- --------------
       Total current liabilities              4,434,090      3,668,106

 Capital lease obligations, net of
   current portion                            1,855,054        454,155
 Notes payable, net of current portion          100,888        378,139
                                         -------------- --------------

       Total liabilities                      6,390,032      4,500,399

 Minority interest                              457,317        339,421

 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,
     5,428,604 and 5,451,631 shares
     issued and outstanding                     217,143        218,065
   Additional paid-in capital                14,739,193     14,684,050
   Accumulated deficit                      (10,873,451)   (12,511,504)
                                         -------------- --------------
       Total shareholders' equity             4,082,885      2,390,611
                                         -------------- --------------
  Total liabilities and shareholders'
   equity                                  $ 10,930,234   $  7,230,431
                                         ============== ==============



 Emergent Group Inc.
 Consolidated Statements of Operations


                           Year Ended            Three Months Ended
                          December 31,              December 31,
                   ------------------------- -------------------------
                       2006         2005         2006         2005
                   ------------ ------------ ------------ ------------
 Revenue           $ 15,929,243 $ 12,479,263 $  3,947,282 $  3,426,514
 Cost of goods sold   9,594,557    7,937,656    2,376,277    2,072,596
                   ------------ ------------ ------------ ------------
 Gross profit         6,334,686    4,541,607    1,571,005    1,353,918
 Selling, general,
   and administrative
   expenses           4,016,689    3,399,359    1,032,579      929,565
                   ------------ ------------ ------------ ------------
 Income from
   operations         2,317,997    1,142,248      538,426      424,353
 Other income
   (expense)            (15,798)       9,539      (13,921)         476
                   ------------ ------------ ------------ ------------
 Income before
   provision for
   income taxes,
   deferred tax
   benefit, and
   minority
   interest           2,302,199    1,151,787      524,505      424,829
 Provision for
   income taxes         (39,893)     (27,007)       8,635      (27,007)
 Reversal of
   deferred tax
   valuation allowance  905,400           --      905,400           --
                   ------------ ------------ ------------ ------------
 Net income before
   minority interest  3,167,706    1,124,780    1,438,540      397,822
 Minority interest
   in income of
   consolidated
   limited liability
   companies           (443,739)    (158,528)    (174,140)     (63,450)
                   ------------ ------------ ------------ ------------
 Net income        $  2,723,967 $    966,252 $  1,264,400 $    334,372
                   ============ ============ ============ ============
   Basic earnings
     per share          $  0.50      $  0.20      $  0.23      $  0.07
   Diluted earnings
     per share          $  0.47      $  0.19      $  0.22      $  0.06

   Basic weighted-
     average shares
     outstanding      5,455,266    4,934,430    5,447,997    5,129,808
   Diluted weighted-
     average shares
     outstanding      5,801,762    5,189,648    5,799,194    5,385,026


            

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