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 June 30, 2014	(in thousands)
Net sales	$	54,612		$	113,337		$	187,778		$	(24,415	)	$	331,312
Cost of products sold	49,117			84,012			128,602			(24,352		)	237,379
Gross Profit	5,495			29,325			59,176			(63		)	93,933
Selling, general and administrative expenses	32,216			23,019			46,310			—			101,545
Charge related to restructuring activities	890			—			1,200			—			2,090
Income (loss) from equity investee	14,036			7,696			(28		)	(21,704		)	—
Interest expense	—			626			209			—			835
Earnings (Loss) from Continuing Operations before Income Taxes	(13,575		)	13,376			11,429			(21,767		)	(10,537		)
Income taxes	37			—			3,038			—			3,075
Net Earnings (loss)	$	(13,612	)	$	13,376		$	8,391		$	(21,767	)	$	(13,612	)

Other Comprehensive Income (Loss), Net of Tax	(4,277		)	(2,502		)	11,432			(8,930		)	(4,277		)

Comprehensive Income (Loss)	$	(17,889	)	$	10,874		$	19,823		$	(30,697	)	$	(17,889	)



Three month period ended June 30, 2013
Net sales	$	64,903		$	126,020		$	177,582		$	(23,745	)	$	344,760
Cost of products sold	55,077			91,674			128,350			(23,898		)	251,203
Gross Profit	9,826			34,346			49,232			153			93,557
Selling, general and administrative expenses	35,407			23,978			43,353			1,350			104,088
Charge related to restructuring activities	1,810			13			769			—			2,592
Income (loss) from equity investee	25,370			6,729			(180		)	(31,919		)	—
Interest expense (income)—net	(399		)	1,120			20			—			741
Earnings (Loss) from Continuing Operations before Income Taxes	(1,622		)	15,964			4,910			(33,116		)	(13,864		)
Income taxes (benefit)	10,839			(25		)	(189		)	—			10,625
Net Earnings (Loss) from Continuing Operations	(12,461		)	15,989			5,099			(33,116		)	(24,489		)
Net Earnings from Discontinued Operations	—			12,028			—			—			12,028
Net Earnings (loss)	$	(12,461	)	$	28,017		$	5,099		$	(33,116	)	$	(12,461	)

Other Comprehensive Income (Loss), Net of Tax	(8,163		)	1,551			(9,694		)	8,143			(8,163		)

Comprehensive Income (Loss)	$	(20,624	)	$	29,568		$	(4,595	)	$	(24,973	)	$	(20,624	)

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Six month period ended June 30, 2014	(in thousands)
Net sales	$	104,721		$	219,791		$	361,578		$	(45,709	)	$	640,381
Cost of products sold	94,821			161,596			250,492			(45,709		)	461,200
Gross Profit	9,900			58,195			111,086			—			179,181
Selling, general and administrative expenses	63,866			45,287			90,413			—			199,566
Charge related to restructuring activities	2,054			(95		)	2,371			—			4,330
Income (loss) from equity investee	24,346			14,627			(64		)	(38,909		)	—
Interest expense (income)—net	(284		)	1,491			366			—			1,573
Earnings (Loss) from Continuing Operations before Income Taxes	(31,390		)	26,139			17,872			(38,909		)	(26,288		)
Income taxes	198			—			5,102			—			5,300
Net Earnings (loss)	$	(31,588	)	$	26,139		$	12,770		$	(38,909	)	$	(31,588	)

Other Comprehensive Income (Loss), Net of Tax	2,413			(213		)	2,477			(2,264		)	2,413

Comprehensive Income (Loss)	$	(29,175	)	$	25,926		$	15,247		$	(41,173	)	$	(29,175	)



Six month period ended June 30, 2013
Net sales	$	125,812		$	244,456		$	351,507		$	(45,578	)	$	676,197
Cost of products sold	107,430			177,523			250,055			(45,952		)	489,056
Gross Profit	18,382			66,933			101,452			374			187,141
Selling, general and administrative expenses	70,270			47,029			87,330			2,694			207,323
Charge related to restructuring activities	3,481			13			1,620			—			5,114
Income (loss) from equity investee	73,388			12,537			(115		)	(85,810		)	—
Interest expense (income)—net	(444		)	1,556			639			—			1,751
Earnings (Loss) from Continuing Operations before Income Taxes	18,463			30,872			11,748			(88,130		)	(27,047		)
Income taxes (benefit)	(4,257		)	(50		)	7,457			—			3,150
Net Earnings (Loss) from Continuing Operations	22,720			30,922			4,291			(88,130		)	(30,197		)
Net Earnings from Discontinued Operations	—			52,917			—			—			52,917
Net Earnings (loss)	$	22,720		$	83,839		$	4,291		$	(88,130	)	$	22,720

Other Comprehensive Income (Loss), Net of Tax	(8,029		)	(635		)	(7,907		)	8,542			(8,029		)

Comprehensive Income (Loss)	$	14,691		$	83,204		$	(3,616	)	$	(79,588	)	$	14,691

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
June 30, 2014	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	3,222	$	247	$	19,532	$	—		$	23,001
Trade receivables, net	59,657		28,715		99,674		—			188,046
Installment receivables, net	—		482		1,026		—			1,508
Inventories, net	21,578		27,126		118,921		(2,612		)	165,013
Deferred income taxes	—		—		2,246		—			2,246
Intercompany advances, net	9,381		1,092		50,469		(60,942		)	—
Other current assets	6,516		514		33,381		(1,810		)	38,601
Total Current Assets	100,354		58,176		325,249		(65,364		)	418,415
Investment in subsidiaries	1,501,793		467,832		—		(1,969,625		)	—
Intercompany advances, net	999,265		1,676,731		181,680		(2,857,676		)	—
Other Assets	36,416		1,056		2,017		—			39,489
Other Intangibles	454		15,453		42,720		—			58,627
Property and Equipment, net	32,720		15,904		50,962		—			99,586
Goodwill	—		16,660		447,043		—			463,703
Total Assets	$	2,671,002	$	2,251,812	$	1,049,671	$	(4,892,665	)	$	1,079,820
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	52,271	$	9,517	$	61,276	$	—		$	123,064
Accrued expenses	28,961		16,869		84,716		(1,810		)	128,736
Current Taxes, payable and deferred	3,545		—		10,038		—			13,583
Intercompany advances, net	49,257		1,950		9,735		(60,942		)	—
Short-term debt and current maturities of long-term obligations	1,571		8		877		—			2,456
Total Current Liabilities	135,605		28,344		166,642		(62,752		)	267,839
Long-Term Debt	47,986		20		5,654		—			53,660
Other Long-Term Obligations	50,279		—		64,660		—			114,939
Intercompany advances, net	1,793,750		1,000,948		62,978		(2,857,676		)	—
Total Shareholders’ Equity	643,382		1,222,500		749,737		(1,972,237		)	643,382
Total Liabilities and Shareholders’ Equity	$	2,671,002	$	2,251,812	$	1,049,671	$	(4,892,665	)	$	1,079,820

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
Current Taxes, payable and deferred	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
Six month period ended June 30, 2014	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	(11,663	)	$	1,192		$	(3,428	)	$	—	$	(13,899	)
Investing Activities
Purchases of property and equipment	(1,360		)	(1,005		)	(4,533		)	—		(6,898		)
Proceeds from sale of property and equipment	—			—			3			—		3
Other long-term assets	4,922			—			22			—		4,944
Other	46			—			(22		)	—		24
Net Cash Used for Investing Activities	3,608			(1,005		)	(4,530		)	—		(1,927		)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	135,734			—			—			—		135,734
Payments on revolving lines of credit and long-term borrowings	(125,198		)	(253		)	(1,951		)	—		(127,402		)
Proceeds from exercise of stock options	132			—			—			—		132
Payment of dividends	(792		)	—			—			—		(792		)
Net Cash Provided (Used) by Financing Activities	9,876			(253		)	(1,951		)	—		7,672
Effect of exchange rate changes on cash	—			—			1,370			—		1,370
Decrease in cash and cash equivalents	1,821			(66		)	(8,539		)	—		(6,784		)
Cash and cash equivalents at beginning of year	1,401			313			28,071			—		29,785
Cash and cash equivalents at end of period	$	3,222		$	247		$	19,532		$	—	$	23,001

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Six month period ended June 30, 2013	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	27,489		$	(78,678	)	$	(30,512	)	$	51,737		$	(29,964	)
Investing Activities
Purchases of property and equipment	(2,817		)	(2,338		)	(2,511		)	—			(7,666		)
Proceeds from sale of property and equipment	—			—			9			—			9
Proceeds from sale of business	—			144,681			—			—			144,681
Other long-term assets	(419		)	—			(3		)	—			(422		)
Other	117,937			(63,536		)	—			(54,431		)	(30		)
Net Cash Provided (Used) for Investing Activities	114,701			78,807			(2,505		)	(54,431		)	136,572
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	172,878			—			23,521			—			196,399
Payments on revolving lines of credit and long-term borrowings	(318,287		)	(676		)	—			—			(318,963		)
Payment of dividends	(791		)	—			(2,694		)	2,694			(791		)
Net Cash Provided (Used) by Financing Activities	(146,200		)	(676		)	20,827			2,694			(123,355		)
Effect of exchange rate changes on cash	—			—			(597		)	—			(597		)
Decrease in cash and cash equivalents	(4,010		)	(547		)	(12,787		)	—			(17,344		)
Cash and cash equivalents at beginning of year	5,774			1,018			31,999			—			38,791
Cash and cash equivalents at end of period	$	1,764		$	471		$	19,212		$	—		$	21,447