Langer Inc. Closes Acquisition of Regal Medical Supply

Langer Inc. (NASDAQ: GAIT), Deer Park, New York, announced January 29 the closing of the acquisition of substantially all of the assets of Regal Medical Supply LLC, Granbury, Texas, through Langer's wholly owned subsidiary Regal Acquisition Co.

Regal is a Board for Orthotist/Prosthetist Certification (BOC)-accredited supplier of contracture management products and services focused on the long-term care market with 24 sales representatives covering both chain and independently operated skilled nursing and assisted living facilities in 22 states. The purchase price was approximately $1.64 million, including the satisfaction of certain obligations to affiliated parties in exchange for the delivery of excess working capital, Langer reported. The transaction consideration was funded through the issuance of 379,167 shares of Langer common stock at a price of $4.3290. For the calendar year ended December 31, 2005 Regal generated net sales of approximately $1.87 million and for the nine-month period ended September 30, 2006, generated net sales of approximately $1.74 million. Regal President John Shero executed a three-year employment contract and joined a subsidiary of the company as its vice president of Field Sales.

Langer President and CEO Gray Hudkins commented, "As we have begun working through the integration of Regal's structure with our existing sales coverage, we are more excited than before about the growth opportunities we believe this acquisition brings to our company. In addition to achieving our goal of penetrating the long-term care market with our existing product lines, we also believe we will be able to provide better clinical and sales support at the local level to our existing customers. In addition, we have begun calling on a number of large physical rehabilitation companies that work with owners of long-term care facilities and have two chain pilot programs scheduled to begin in early February. We expect to see a near term increase in utilization of custom Langer products sold by Regal sales people through the long-term care channel, leveraging our manufacturing overhead structure. In addition, we believe that provision of both products and higher margin fitting and billing services should have a positive impact on our operating performance."

Hudkins continued, "We are excited to welcome Regal President John Shero to our team, and we look forward to working together with our distribution partners, our large corporate clients, our individual practitioners clients, and our core podiatric customer base to provide quality products at competitive prices with unparalleled service."

Langer Inc. Closes Acquisition of Regal Medical Supply

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Langer Inc. Closes Acquisition of Regal Medical Supply

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