Supplemental Guarantor Information

Effective February 12, 2007, substantially all of the domestic subsidiaries (the “Guarantor Subsidiaries”) of the company became guarantors of the indebtedness of Invacare Corporation under its 4.125% Convertible Senior Subordinated Debentures due 2027 (the “Debentures”) with an original aggregate principal amount of $135,000,000. The majority of the company’s subsidiaries are not guaranteeing the indebtedness of the Debentures (the “Non-Guarantor Subsidiaries”). Each of the Guarantor Subsidiaries has fully and unconditionally guaranteed, on a joint and several basis, to pay principal, premium, and interest related to the Debentures and each of the Guarantor Subsidiaries are directly or indirectly wholly-owned subsidiaries of the company.

Presented below are the consolidating condensed financial statements of Invacare Corporation (Parent), its combined Guarantor Subsidiaries and combined Non-Guarantor Subsidiaries with their investments in subsidiaries accounted for using the equity method. The company does not believe that separate financial statements of the Guarantor Subsidiaries are material to investors and accordingly, separate financial statements and other disclosures related to the Guarantor Subsidiaries are not presented.

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME



	The Company (Parent)			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Three month period ended March 31, 2012
Net sales	$	90,032		$	203,117	$	173,388		$	(32,973	)	$	433,564
Cost of products sold	67,952			159,397		119,415			(32,769		)	313,995
Gross Profit	22,080			43,720		53,973			(204		)	119,569
Selling, general and administrative expenses	32,769			29,669		45,061			—			107,499
Charge related to restructuring activities	6			8		534			—			548
Income (loss) from equity investee	18,246			1,044		199			(19,489		)	—
Interest expense (income)—net	(870		)	1,249		760			—			1,139
Earnings (loss) before Income Taxes	8,421			13,838		7,817			(19,693		)	10,383
Income taxes	188			87		1,875			—			2,150
Net Earnings (loss)	$	8,233		$	13,751	$	5,942		$	(19,693	)	$	8,233

Other Comprehensive Income, Net of Tax	1,186			1,845		(150		)	(1,695		)	1,186

Comprehensive Income	$	9,419		$	15,596	$	5,792		$	(21,388	)	$	9,419

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Total
Three month period ended March 31, 2011	(in thousands)

Net sales	$	92,232	$	189,627	$	170,813		$	(24,174	)	$	428,498
Cost of products sold	66,338		149,050		114,362			(24,258		)	305,492
Gross Profit	25,894		40,577		56,451			84			123,006
Selling, general and administrative expenses	32,700		14,193		45,510			13,374			105,777
Loss on debt extinguishment including debt finance charges and associated fees	4,881		—		—			—			4,881
Income (loss) from equity investee	20,824		4,335		(21		)	(25,138		)	—
Interest expense—net	1,063		377		904			—			2,344
Earnings (loss) before Income Taxes	8,074		30,342		10,016			(38,428		)	10,004
Income taxes	620		100		1,830			—			2,550
Net Earnings (loss)	$	7,454	$	30,242	$	8,186		$	(38,428	)	$	7,454

Other Comprehensive Income, Net of Tax	33,938		2,386		32,453			(34,839		)	33,938

Comprehensive Income	$	41,392	$	32,628	$	40,639		$	(73,267	)	$	41,392

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
March 31, 2012
Assets
Current Assets
Cash and cash equivalents	$	4,061	$	2,463	$	26,144	$	—		$	32,668
Trade receivables, net	81,068		80,116		94,175		—			255,359
Installment receivables, net	—		1,146		3,396		—			4,542
Inventories, net	40,103		57,070		118,944		(1,962		)	214,155
Deferred income taxes	422		45		571		—			1,038
Other current assets	9,875		6,758		33,013		(3,550		)	46,096
Total Current Assets	135,529		147,598		276,243		(5,512		)	553,858
Investment in subsidiaries	1,581,133		527,199		—		(2,108,332		)	—
Intercompany advances, net	80,537		850,233		209,049		(1,139,819		)	—
Other Assets	41,167		549		1,118		—			42,834
Other Intangibles	737		25,768		54,072		—			80,577
Property and Equipment, net	44,034		18,905		65,246		—			128,185
Goodwill	—		55,893		439,202		—			495,095
Total Assets	$	1,883,137	$	1,626,145	$	1,044,930	$	(3,253,663	)	$	1,300,549
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	73,251	$	18,476	$	69,247	$	—		$	160,974
Accrued expenses	32,694		22,211		73,636		(3,550		)	124,991
Accrued income taxes	13		—		137		—			150
Short-term debt and current maturities of long-term obligations	6,566		—		805		—			7,371
Total Current Liabilities	112,524		40,687		143,825		(3,550		)	293,486
Long-Term Debt	252,967		207		7,102		—			260,276
Other Long-Term Obligations	49,050		8,313		52,343		—			109,706
Intercompany advances, net	831,515		214,195		94,111		(1,139,821		)	—
Total Shareholders’ Equity	637,081		1,362,743		747,549		(2,110,292		)	637,081
Total Liabilities and Shareholders’ Equity	$	1,883,137	$	1,626,145	$	1,044,930	$	(3,253,663	)	$	1,300,549

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2011
Assets
Current Assets
Cash and cash equivalents	$	3,642	$	2,104	$	29,178	$	—		$	34,924
Trade receivables, net	83,522		74,161		90,291		—			247,974
Installment receivables, net	—		1,180		5,491		—			6,671
Inventories, net	45,937		49,336		99,006		(1,518		)	192,761
Deferred income taxes	422		45		1,153		—			1,620
Other current assets	10,171		6,517		33,812		(5,680		)	44,820
Total Current Assets	143,694		133,343		258,931		(7,198		)	528,770
Investment in subsidiaries	1,560,693		524,800		—		(2,085,493		)	—
Intercompany advances, net	79,598		846,829		200,157		(1,126,584		)	—
Other Assets	40,813		698		1,136		—			42,647
Other Intangibles	821		26,838		55,661		—			83,320
Property and Equipment, net	45,459		17,770		66,483		—			129,712
Goodwill	—		54,894		441,711		—			496,605
Total Assets	$	1,871,078	$	1,605,172	$	1,024,079	$	(3,219,275	)	$	1,281,054
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	73,948	$	18,078	$	56,779	$	—		$	148,805
Accrued expenses	37,708		21,038		79,529		(5,680		)	132,595
Accrued income taxes	508		—		987		—			1,495
Short-term debt and current maturities of long-term obligations	4,210		4		830		—			5,044
Total Current Liabilities	116,374		39,120		138,125		(5,680		)	287,939
Long-Term Debt	252,855		227		7,358		—			260,440
Other Long-Term Obligations	47,873		7,312		50,965		—			106,150
Intercompany advances, net	827,451		210,005		89,128		(1,126,584		)	—
Total Shareholders’ Equity	626,525		1,348,508		738,503		(2,087,011		)	626,525
Total Liabilities and Shareholders’ Equity	$	1,871,078	$	1,605,172	$	1,024,079	$	(3,219,275	)	$	1,281,054

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Total
	(in thousands)
Three month period ended March 31, 2012
Net Cash Provided (Used) by Operating Activities	$	(483	)	$	1,074		$	(1,416	)	$	—	$	(825	)
Investing Activities
Purchases of property and equipment	(553		)	(2,546		)	(1,582		)	—		(4,681		)
Proceeds from sale of property and equipment	12			17			16			—		45
Other long-term assets	—			—			(11		)	—		(11		)
Other	48			—			(28		)	—		20
Net Cash Used for Investing Activities	(493		)	(2,529		)	(1,605		)	—		(4,627		)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	73,694			1,814			—			—		75,508
Payments on revolving lines of credit and long-term borrowings	(71,902		)	—			(578		)	—		(72,480		)
Payment of dividends	(397		)	—			—			—		(397		)
Net Cash Provided (Used) by Financing Activities	1,395			1,814			(578		)	—		2,631
Effect of exchange rate changes on cash	—			—			565			—		565
Increase (decrease) in cash and cash equivalents	419			359			(3,034		)	—		(2,256		)
Cash and cash equivalents at beginning of year	3,642			2,104			29,178			—		34,924
Cash and cash equivalents at end of year	$	4,061		$	2,463		$	26,144		$	—	$	32,668

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Three month period ended March 31, 2011
Net Cash Provided (Used) by Operating Activities	$	31,725		$	(342	)	$	(9,066	)	$	(13,374	)	$	8,943
Investing Activities
Purchases of property and equipment	(817		)	(813		)	(1,723		)	—			(3,353		)
Proceeds from sale of property and equipment	—			—			14			—			14
Other long-term assets	(210		)	—			4			—			(206		)
Other	32			(4		)	(189		)	—			(161		)
Net Cash Used for Investing Activities	(995		)	(817		)	(1,894		)	—			(3,706		)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	101,069			—			11,223			—			112,292
Payments on revolving lines of credit and long-term borrowings	(113,238		)	—			(4,320		)	—			(117,558		)
Proceeds from exercise of stock options	2,068			—			—			—			2,068
Payment of financing costs	(4,507		)	—			—			—			(4,507		)
Payment of dividends	(401		)	—			(13,374		)	13,374			(401		)
Purchase of treasury stock	(14,644		)	—			—			—			(14,644		)
Net Cash Provided (Used) by Financing Activities	(29,653		)	—			(6,471		)	13,374			(22,750		)
Effect of exchange rate changes on cash	—			—			1,683			—			1,683
Increase (Decrease) in cash and cash equivalents	1,077			(1,159		)	(15,748		)	—			(15,830		)
Cash and cash equivalents at beginning of year	4,036			2,476			41,950			—			48,462
Cash and cash equivalents at end of year	$	5,113		$	1,317		$	26,202		$	—		$	32,632