Business Editors

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Oct. 24, 2006--Medical Action Industries Inc. (NASDAQ/MDCI), a leading supplier of medical and surgical disposable products, today announced that it was once again selected by Forbes Magazine as one of the 200 best small public companies in America. Paul D. Meringolo, Chief Executive Officer and President of Medical Action, noted that "It is extremely gratifying to receive this recognition for the sixth consecutive year, especially given the extraordinary criteria, which includes sales growth, earnings growth, and return on equity, over the past five years. Our continuous selection over the past six years demonstrates our ability to manage our business despite volatility in raw material costs and general economic business conditions. We are extremely proud to have delivered eleven consecutive years of record revenue and nine consecutive years of record income."

Mr. Meringolo further clarified that "The recently announced settlement between Medegen Medical Products and the United States Equal Employment Opportunity Commission does not require any payment be made by Medical Action. The settlement, which stems from activities that allegedly occurred more than three years ago, was specifically carved out of Medical Action's purchase of Medegen Medical Products."

Medical Action is a diversified manufacturer of disposable medical devices. Its products are marketed primarily to acute care facilities in domestic and certain international markets. Further, Medical Action has expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers and long-term care facilities. Medical Action is a leading manufacturer and distributor of many of its products in the markets we compete in. Our products are marketed through an extensive network of direct sales personnel and independent distributors. Medical Action has preferred vendor agreements with national distributors, as well as contracts with nearly every major group purchasing alliance. The Company's common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.

This news release contains forward-looking statements that involve risks and uncertainties regarding Medical Action's operations and future results. Please see the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's Form 10-K and Form 10-Qs, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.

CONTACT: Medical Action Industries Inc.
Richard G. Satin, Vice President of Operations and
General Counsel
631-231-4600

SOURCE: Medical Action Industries Inc.