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 (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		$	124,615		$	173,925		$	(21,833	)	$	337,616
Cost of products sold	52,353			89,834			121,705			(22,054		)	241,838
Gross Profit	8,556			34,781			52,220			221			95,778
Selling, general and administrative expenses	34,863			23,835			43,977			1,344			104,019
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		)	646			619			—			1,220
Earnings (Loss) from Continuing Operations before Income Taxes	20,085			16,108			6,838			(55,014		)	(11,983		)
Income taxes (benefit)	(15,096		)	—			7,646			—			(7,450		)
Net Earnings (Loss) from Continuing Operations	35,181			16,108			(808		)	(55,014		)	(4,533		)
Net Earnings from Discontinued Operations	—			39,714			—			—			39,714
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 STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
Three month period ended March 31, 2012	(in thousands)
Net sales	$	90,032		$	124,653		$	173,388		$	(32,973	)	$	355,100
Cost of products sold	67,952			89,905			119,415			(32,769		)	244,503
Gross Profit	22,080			34,748			53,973			(204		)	110,597
Selling, general and administrative expenses	32,769			22,883			45,061			—			100,713
Charge related to restructuring activities	6			21			534			—			561
Income (loss) from equity investee	18,246			1,044			199			(19,489		)	—
Interest expense—net	(870		)	2,160			760			—			2,050
Earnings (Loss) from Continuing Operations before Income Taxes	8,421			10,728			7,817			(19,693		)	7,273
Income taxes (benefit)	188			(395		)	1,875			—			1,668
Net Earnings (Loss) from Continuing Operations	8,233			11,123			5,942			(19,693		)	5,605
Net Earnings from Discontinued Operations	—			2,628			—			—			2,628
Net Earnings (loss)	$	8,233		$	13,751		$	5,942		$	(19,693	)	$	8,233

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

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

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
March 31, 2013	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	1,984	$	199	$	22,898	$	—		$	25,081
Trade receivables, net	64,304		37,526		97,552		—			199,382
Installment receivables, net	—		659		1,311		—			1,970
Inventories, net	39,635		32,742		118,656		(3,336		)	187,697
Deferred income taxes	—		—		318		—			318
Other current assets	13,543		506		29,861		(3,350		)	40,560
Total Current Assets	119,466		71,632		270,596		(6,686		)	455,008
Investment in subsidiaries	1,464,146		528,971		—		(1,993,117		)	—
Intercompany advances, net	81,788		877,560		242,020		(1,201,368		)	—
Other Assets	41,312		413		928		—			42,653
Other Intangibles	582		21,238		47,348		—			69,168
Property and Equipment, net	40,108		19,193		56,765		—			116,066
Goodwill	—		32,937		429,357		—			462,294
Total Assets	$	1,747,402	$	1,551,944	$	1,047,014	$	(3,201,171	)	$	1,145,189
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	48,219	$	9,440	$	62,078	$	—		$	119,737
Accrued expenses	32,718		17,922		80,336		(3,350		)	127,626
Accrued income taxes	3,275		—		8,807		—			12,082
Short-term debt and current maturities of long-term obligations	2,439		7		848		—			3,294
Total Current Liabilities	86,651		27,369		152,069		(3,350		)	262,739
Long-Term Debt	107,160		123		6,041		—			113,324
Other Long-Term Obligations	53,068		—		58,990		—			112,058
Intercompany advances, net	843,455		268,989		88,924		(1,201,368		)	—
Total Shareholders’ Equity	657,068		1,255,463		740,990		(1,996,453		)	657,068
Total Liabilities and Shareholders’ Equity	$	1,747,402	$	1,551,944	$	1,047,014	$	(3,201,171	)	$	1,145,189

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
December 31, 2012	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	5,774	$	1,018	$	31,999	$	—		$	38,791
Trade receivables, net	71,622		37,223		89,946		—			198,791
Installment receivables, net	—		829		1,359		—			2,188
Inventories, net	40,278		31,455		114,169		(2,656		)	183,246
Other current assets	12,727		473		34,606		(6,030		)	41,776
Assets held for sale - current	—		103,157		—		—			103,157
Total Current Assets	130,401		174,155		272,079		(8,686		)	567,949
Investment in subsidiaries	1,536,898		523,176		6,888		(2,066,962		)	—
Intercompany advances, net	81,533		874,567		238,270		(1,194,370		)	—
Other Assets	41,006		314		942		—			42,262
Other Intangibles	663		22,211		48,778		—			71,652
Property and Equipment, net	39,911		19,957		58,363		—			118,231
Goodwill	—		32,937		429,263		—			462,200
Total Assets	$	1,830,412	$	1,647,317	$	1,054,583	$	(3,270,018	)	$	1,262,294
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	63,812	$	9,465	$	59,771	$	—		$	133,048
Accrued expenses	36,716		18,155		86,348		(6,030		)	135,189
Accrued income taxes	1,545		—		1,168		—			2,713
Short-term debt and current maturities of long-term obligations	4,552		7		868		—			5,427
Liabilities held for sale - current	—		23,358		—		—			23,358
Total Current Liabilities	106,625		50,985		148,155		(6,030		)	299,735
Long-Term Debt	223,014		143		6,218		—			229,375
Other Long-Term Obligations	52,957		—		59,238		—			112,195
Intercompany advances, net	826,827		271,353		96,190		(1,194,370		)	—
Total Shareholders’ Equity	620,989		1,324,836		744,782		(2,069,618		)	620,989
Total Liabilities and Shareholders’ Equity	$	1,830,412	$	1,647,317	$	1,054,583	$	(3,270,018	)	$	1,262,294

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

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Total
Three month period ended March 31, 2012	(in thousands)
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 period	$	4,061		$	2,463		$	26,144		$	—	$	32,668