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 September 30, 2014	(in thousands)
Net sales	$	55,333		$	96,947		$	192,482		$	(24,242	)	$	320,520
Cost of products sold	49,799			76,819			133,533			(24,278		)	235,873
Gross Profit	5,534			20,128			58,949			36			84,647
Selling, general and administrative expenses	32,124			19,765			46,375			(83		)	98,181
Charge related to restructuring activities	3,149			—			928			—			4,077
Asset write-downs to intangibles	—			8,253			—			—			8,253
Income (loss) from equity investee	13,251			8,476			(63		)	(21,664		)	—
Interest expense	57			406			48			—			511
Earnings (Loss) from Continuing Operations before Income Taxes	(16,545		)	180			11,535			(21,545		)	(26,375		)
Income taxes (benefit)	(1,449		)	400			3,399			—			2,350
Net Earnings (Loss) from Continuing Operations	(15,096		)	(220		)	8,136			(21,545		)	(28,725		)
Net Earnings from Discontinued Operations	—			13,629			—			—			13,629
Net Earnings (loss)	$	(15,096	)	$	13,409		$	8,136		$	(21,545	)	$	(15,096	)

Other Comprehensive Income (Loss), Net of Tax	(22,346		)	(5,327		)	(9,521		)	14,848			(22,346		)

Comprehensive Income (Loss)	$	(37,442	)	$	8,082		$	(1,385	)	$	(6,697	)	$	(37,442	)



Three month period ended September 30, 2013
Net sales	$	60,641		$	114,950		$	184,299	$	(23,312	)	$	336,578
Cost of products sold	52,454			84,997			128,232		(23,312		)	242,371
Gross Profit	8,187			29,953			56,067		—			94,207
Selling, general and administrative expenses	29,046			24,223			44,310		—			97,579
Charge related to restructuring activities	1,597			36			251		—			1,884
Asset write-downs to intangibles	—			167			—		—			167
Income (loss) from equity investee	32,513			8,935			22		(41,470		)	—
Interest expense (income)—net	(603		)	1,107			77		—			581
Earnings (Loss) from Continuing Operations before Income Taxes	10,660			13,355			11,451		(41,470		)	(6,004		)
Income taxes (benefit)	(5,442		)	(480		)	6,192		—			270
Net Earnings (Loss) from Continuing Operations	16,102			13,835			5,259		(41,470		)	(6,274		)
Net Earnings from Discontinued Operations	—			22,376			—		—			22,376
Net Earnings (loss)	$	16,102		$	36,211		$	5,259	$	(41,470	)	$	16,102

Other Comprehensive Income (Loss), Net of Tax	9,874			220			10,135		(10,355		)	9,874

Comprehensive Income (Loss)	$	25,976		$	36,431		$	15,394	$	(51,825	)	$	25,976

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Nine month period ended September 30, 2014	(in thousands)
Net sales	$	160,054		$	307,801		$	554,060		$	(69,951	)	$	951,964
Cost of products sold	144,620			234,288			384,025			(69,987		)	692,946
Gross Profit	15,434			73,513			170,035			36			259,018
Selling, general and administrative expenses	95,990			62,633			136,788			(83		)	295,328
Charge related to restructuring activities	5,203			(95		)	3,299			—			8,407
Asset write-downs to intangibles	—			8,253			—			—			8,253
Income (loss) from equity investee	37,596			23,103			(127		)	(60,572		)	—
Interest expense (income)—net	(227		)	1,668			414			—			1,855
Earnings (Loss) from Continuing Operations before Income Taxes	(47,936		)	24,157			29,407			(60,453		)	(54,825		)
Income taxes (benefit)	(1,251		)	—			8,501			—			7,250
Net Earnings (Loss) from Continuing Operations	(46,685		)	24,157			20,906			(60,453		)	(62,075		)
Net Earnings from Discontinued Operations	—			15,390			—			—			15,390
Net Earnings (loss)	$	(46,685	)	$	39,547		$	20,906		$	(60,453	)	$	(46,685	)

Other Comprehensive Income (Loss), Net of Tax	(19,933		)	(3,038		)	(18,476		)	21,514			(19,933		)

Comprehensive Income (Loss)	$	(66,618	)	$	36,509		$	2,430		$	(38,939	)	$	(66,618	)



Nine month period ended September 30, 2013
Net sales	$	186,453		$	350,291		$	535,805		$	(68,890	)	$	1,003,659
Cost of products sold	159,884			258,609			378,287			(69,264		)	727,516
Gross Profit	26,569			91,682			157,518			374			276,143
Selling, general and administrative expenses	99,338			69,085			131,640			2,694			302,757
Charge related to restructuring activities	5,078			49			1,871			—			6,998
Asset write-downs to intangibles	—			167			—			—			167
Income (loss) from equity investee	105,501			21,472			(93		)	(126,880		)	—
Interest expense (income)—net	(1,418		)	2,819			715			—			2,116
Earnings (Loss) from Continuing Operations before Income Taxes	29,072			41,034			23,199			(129,200		)	(35,895		)
Income taxes (benefit)	(9,749		)	(1,470		)	13,649			—			2,430
Net Earnings (Loss) from Continuing Operations	38,821			42,504			9,550			(129,200		)	(38,325		)
Net Earnings from Discontinued Operations	—			77,146			—			—			77,146
Net Earnings (loss)	$	38,821		$	119,650		$	9,550		$	(129,200	)	$	38,821

Other Comprehensive Income (Loss), Net of Tax	1,845			(415		)	2,228			(1,813		)	1,845

Comprehensive Income (Loss)	$	40,666		$	119,235		$	11,778		$	(131,013	)	$	40,666

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
September 30, 2014	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	1,752	$	471	$	26,843	$	—		$	29,066
Trade receivables, net	51,229		27,551		93,472		—			172,252
Installment receivables, net	—		413		911		—			1,324
Inventories, net	24,361		27,902		113,045		(2,575		)	162,733
Deferred income taxes	—		—		2,389		—			2,389
Intercompany advances, net	8,919		1,861		68,139		(78,919		)	—
Other current assets	6,138		467		36,836		(6,180		)	37,261
Total Current Assets	92,399		58,665		341,635		(87,674		)	405,025
Investment in subsidiaries	1,430,467		477,900		—		(1,908,367		)	—
Intercompany advances, net	1,022,820		1,656,292		183,397		(2,862,509		)	—
Other Assets	28,990		1,031		1,980		—			32,001
Other Intangibles	366		5,456		39,997		—			45,819
Property and Equipment, net	31,056		14,407		48,018		—			93,481
Goodwill	—		16,661		431,444		—			448,105
Total Assets	$	2,606,098	$	2,230,412	$	1,046,471	$	(4,858,550	)	$	1,024,431
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	52,179	$	7,408	$	61,616	$	—		$	121,203
Accrued expenses	41,846		21,541		92,838		(6,180		)	150,045
Current Taxes, payable and deferred	6,791		—		11,037		—			17,828
Intercompany advances, net	63,749		2,050		13,120		(78,919		)	—
Short-term debt and current maturities of long-term obligations	—		8		773		—			781
Total Current Liabilities	164,565		31,007		179,384		(85,099		)	289,857
Long-Term Debt	19,166		8		4,733		—			23,907
Other Long-Term Obligations	40,169		—		62,971		—			103,140
Intercompany advances, net	1,774,671		1,026,223		61,615		(2,862,509		)	—
Total Shareholders’ Equity	607,527		1,173,174		737,768		(1,910,942		)	607,527
Total Liabilities and Shareholders’ Equity	$	2,606,098	$	2,230,412	$	1,046,471	$	(4,858,550	)	$	1,024,431

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
Nine month period ended September 30, 2014	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	(30,886	)	$	(498	)	$	8,089		$	23,433		$	138
Investing Activities
Purchases of property and equipment	(1,901		)	(1,030		)	(6,364		)	—			(9,295		)
Proceeds from sale of property and equipment	—			—			9			—			9
Proceeds from sale of business	—			21,870			—			—			21,870
Other long-term assets	12,060			—			23			—			12,083
Other	40,728			(17,093		)	(25		)	(23,433		)	177
Net Cash Provided (Used) for Investing Activities	50,887			3,747			(6,357		)	(23,433		)	24,844
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	201,766			—			—			—			201,766
Payments on revolving lines of credit and long-term borrowings	(220,390		)	(3,091		)	(2,951		)	—			(226,432		)
Proceeds from exercise of stock options	162			—			—			—			162
Payment of dividends	(1,188		)	—			—			—			(1,188		)
Net Cash Used by Financing Activities	(19,650		)	(3,091		)	(2,951		)	—			(25,692		)
Effect of exchange rate changes on cash	—			—			(9		)	—			(9		)
Increase (decrease) in cash and cash equivalents	351			158			(1,228		)	—			(719		)
Cash and cash equivalents at beginning of year	1,401			313			28,071			—			29,785
Cash and cash equivalents at end of period	$	1,752		$	471		$	26,843		$	—		$	29,066

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Nine month period ended September 30, 2013	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	35,179		$	(81,077	)	$	(20,736	)	$	65,389		$	(1,245	)
Investing Activities
Purchases of property and equipment	(3,234		)	(3,611		)	(4,241		)	—			(11,086		)
Proceeds from sale of property and equipment	—			11			845			—			856
Proceeds from sale of business	—			187,552			—			—			187,552
Other long-term assets	783			—			166			—			949
Other	171,353			(103,417		)	—			(68,083		)	(147		)
Net Cash Provided (Used) for Investing Activities	168,902			80,535			(3,230		)	(68,083		)	178,124
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	226,189			—			23,935			—			250,124
Payments on revolving lines of credit and long-term borrowings	(431,709		)	(476		)	—			—			(432,185		)
Payment of dividends	(1,187		)	—			(2,694		)	2,694			(1,187		)
Net Cash Provided (Used) by Financing Activities	(206,707		)	(476		)	21,241			2,694			(183,248		)
Effect of exchange rate changes on cash	—			—			203			—			203
Decrease in cash and cash equivalents	(2,626		)	(1,018		)	(2,522		)	—			(6,166		)
Cash and cash equivalents at beginning of year	5,774			1,018			31,999			—			38,791
Cash and cash equivalents at end of period	$	3,148		$	—		$	29,477		$	—		$	32,625