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 100%-owned subsidiaries of the Company. Specifically, the Debentures are guaranteed on an unsecured senior subordinated basis by all of the Company's existing domestic subsidiaries (other than the Company's captive insurance subsidiary and any receivables subsidiaries) and certain future direct and indirect 100% owned domestic subsidiaries. All of the guarantors are released and relieved of any liability under such guarantees upon the satisfaction and discharge of the indenture governing the debentures and the payment in full of the debentures. Additionally, in the event any subsidiary guarantor no longer guarantees any of the Company's existing or future senior debt incurred in a public or private U.S. capital markets transaction, such guarantor shall be released and relieved of any liability which it has under the indenture governing the debentures.

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 (LOSS)



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Three month period ended March 31, 2014	(in thousands)
Net sales	$	50,109		$	106,454		$	173,800		$	(21,294	)	$	309,069
Cost of products sold	45,704			77,584			121,890			(21,357		)	223,821
Gross Profit	4,405			28,870			51,910			63			85,248
Selling, general and administrative expenses	31,650			22,268			44,103			—			98,021
Charge related to restructuring activities	1,164			(95		)	1,171			—			2,240
Income (loss) from equity investee	10,310			6,931			(36		)	(17,205		)	—
Interest expense (income)—net	(284		)	865			157			—			738
Earnings (Loss) from Continuing Operations before Income Taxes	(17,815		)	12,763			6,443			(17,142		)	(15,751		)
Income taxes	161			—			2,064			—			2,225
Net Earnings (loss)	$	(17,976	)	$	12,763		$	4,379		$	(17,142	)	$	(17,976	)

Other Comprehensive Income (Loss), Net of Tax	6,690			(2,290		)	8,955			(6,665		)	6,690

Comprehensive Income (Loss)	$	(11,286	)	$	10,473		$	13,334		$	(23,807	)	$	(11,286	)

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Three month period ended March 31, 2013	(in thousands)
Net sales	$	60,909		$	118,436		$	173,925		$	(21,833	)	$	331,437
Cost of products sold	52,353			85,849			121,705			(22,054		)	237,853
Gross Profit	8,556			32,587			52,220			221			93,584
Selling, general and administrative expenses	34,863			23,051			43,977			1,344			103,235
Charge related to restructuring activities	1,671			—			851			—			2,522
Income (loss) from equity investee	48,018			5,808			65			(53,891		)	—
Interest expense (income)—net	(45		)	436			619			—			1,010
Earnings (Loss) from Continuing Operations before Income Taxes	20,085			14,908			6,838			(55,014		)	(13,183		)
Income taxes (benefit)	(15,096		)	(25		)	7,646			—			(7,475		)
Net Earnings (Loss) from Continuing Operations	35,181			14,933			(808		)	(55,014		)	(5,708		)
Net Earnings from Discontinued Operations	—			40,889			—			—			40,889
Net Earnings (loss)	$	35,181		$	55,822		$	(808	)	$	(55,014	)	$	35,181

Other Comprehensive Income (Loss), Net of Tax	134			(2,186		)	1,787			399			134

Comprehensive Income (Loss)	$	35,315		$	53,636		$	979		$	(54,615	)	$	35,315

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
March 31, 2014	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	2,733	$	212	$	18,315	$	—		$	21,260
Trade receivables, net	62,104		29,569		95,246		—			186,919
Installment receivables, net	—		557		1,033		—			1,590
Inventories, net	21,169		27,076		119,646		(2,548		)	165,343
Deferred income taxes	—		—		2,714		—			2,714
Intercompany advances, net	8,750		521		49,043		(58,314		)	—
Other current assets	8,643		507		32,903		(3,017		)	39,036
Total Current Assets	103,399		58,442		318,900		(63,879		)	416,862
Investment in subsidiaries	1,492,163		458,521		—		(1,950,684		)	—
Intercompany advances, net	974,444		1,639,111		181,460		(2,795,015		)	—
Other Assets	42,655		1,320		2,055		—			46,030
Other Intangibles	543		16,272		44,249		—			61,064
Property and Equipment, net	33,904		16,914		52,927		—			103,745
Goodwill	—		16,660		451,654		—			468,314
Total Assets	$	2,647,108	$	2,207,240	$	1,051,245	$	(4,809,578	)	$	1,096,015
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	51,340	$	7,834	$	65,268	$	—		$	124,442
Accrued expenses	29,871		16,351		88,140		(3,017		)	131,345
Accrued income taxes	4,220		—		8,051		—			12,271
Intercompany advances, net	45,945		1,956		10,412		(58,313		)	—
Short-term debt and current maturities of long-term obligations	794		8		961		—			1,763
Total Current Liabilities	132,170		26,149		172,832		(61,330		)	269,821
Long-Term Debt	41,811		41		5,342		—			47,194
Other Long-Term Obligations	53,359		—		65,730		—			119,089
Intercompany advances, net	1,759,857		974,811		60,347		(2,795,015		)	—
Total Shareholders’ Equity	659,911		1,206,239		746,994		(1,953,233		)	659,911
Total Liabilities and Shareholders’ Equity	$	2,647,108	$	2,207,240	$	1,051,245	$	(4,809,578	)	$	1,096,015

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
December 31, 2013	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	1,401	$	313	$	28,071	$	—		$	29,785
Trade receivables, net	72,272		28,317		88,033		—			188,622
Installment receivables, net	—		452		1,110		—			1,562
Inventories, net	30,806		27,472		100,444		(3,085		)	155,637
Deferred income taxes	—		—		2,761		—			2,761
Intercompany advances, net	4,179		380		44,292		(48,851		)	—
Other current assets	9,970		568		35,461		(4,827		)	41,172
Total Current Assets	118,628		57,502		300,172		(56,763		)	419,539
Investment in subsidiaries	1,475,156		450,021		—		(1,925,177		)	—
Intercompany advances, net	959,071		1,620,683		179,451		(2,759,205		)	—
Other Assets	42,831		1,061		2,044		—			45,936
Other Intangibles	466		17,109		45,009		—			62,584
Property and Equipment, net	35,169		17,774		53,206		—			106,149
Goodwill	—		16,660		445,566		—			462,226
Total Assets	$	2,631,321	$	2,180,810	$	1,025,448	$	(4,741,145	)	$	1,096,434
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	42,521	$	7,237	$	66,946	$	—		$	116,704
Accrued expenses	30,314		17,228		90,385		(4,827		)	133,100
Accrued income taxes	5,375		—		6,884		—			12,259
Intercompany advances, net	42,314		2,124		4,413		(48,851		)	—
Short-term debt and current maturities of long-term obligations	13,118		8		976		—			14,102
Total Current Liabilities	133,642		26,597		169,604		(53,678		)	276,165
Long-Term Debt	25,642		61		5,481		—			31,184
Other Long-Term Obligations	53,470		—		64,806		—			118,276
Intercompany advances, net	1,747,758		959,172		52,275		(2,759,205		)	—
Total Shareholders’ Equity	670,809		1,194,980		733,282		(1,928,262		)	670,809
Total Liabilities and Shareholders’ Equity	$	2,631,321	$	2,180,810	$	1,025,448	$	(4,741,145	)	$	1,096,434

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Total
Three month period ended March 31, 2014	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	(1,033	)	$	2,824		$	(8,811	)	$	—	$	(7,020	)
Investing Activities
Purchases of property and equipment	(649		)	(615		)	(2,362		)	—		(3,626		)
Proceeds from sale of property and equipment	—			—			1			—		1
Other long-term assets	(193		)	—			(4		)	—		(197		)
Other	(144		)	—			—			—		(144		)
Net Cash Used for Investing Activities	(986		)	(615		)	(2,365		)	—		(3,966		)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	61,547			—			978			—		62,525
Payments on revolving lines of credit and long-term borrowings	(57,885		)	(2,310		)	—			—		(60,195		)
Proceeds from exercise of stock options	85			—			—			—		85
Payment of dividends	(396		)	—			—			—		(396		)
Net Cash Provided (Used) by Financing Activities	3,351			(2,310		)	978			—		2,019
Effect of exchange rate changes on cash	—			—			442			—		442
Decrease in cash and cash equivalents	1,332			(101		)	(9,756		)	—		(8,525		)
Cash and cash equivalents at beginning of year	1,401			313			28,071			—		29,785
Cash and cash equivalents at end of period	$	2,733		$	212		$	18,315		$	—	$	21,260

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Three month period ended March 31, 2013	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	9,297		$	(89,758	)	$	(7,929	)	$	53,087		$	(35,303	)
Investing Activities
Purchases of property and equipment	(2,223		)	(580		)	(1,062		)	—			(3,865		)
Proceeds from sale of property and equipment	—			—			4			—			4
Proceeds from sale of business	—			144,681			—			—			144,681
Other long-term assets	(108		)	—			—			—			(108		)
Other	107,368			(52,956		)	—			(54,431		)	(19		)
Net Cash Provided (Used) for Investing Activities	105,037			91,145			(1,058		)	(54,431		)	140,693
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	114,762			—			1,188			—			115,950
Payments on revolving lines of credit and long-term borrowings	(232,490		)	(2,206		)	—			—			(234,696		)
Payment of dividends	(396		)	—			(1,344		)	1,344			(396		)
Net Cash Provided (Used) by Financing Activities	(118,124		)	(2,206		)	(156		)	1,344			(119,142		)
Effect of exchange rate changes on cash	—			—			42			—			42
Decrease in cash and cash equivalents	(3,790		)	(819		)	(9,101		)	—			(13,710		)
Cash and cash equivalents at beginning of year	5,774			1,018			31,999			—			38,791
Cash and cash equivalents at end of period	$	1,984		$	199		$	22,898		$	—		$	25,081