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, 2015	(in thousands)
Net sales	$	52,458		$	106,258		$	157,210		$	(26,902	)	$	289,024
Cost of products sold	47,014			80,642			111,216			(26,943		)	211,929
Gross Profit	5,444			25,616			45,994			41			77,095
Selling, general and administrative expenses	25,320			17,468			38,452			—			81,240
Charge related to restructuring activities	199			—			41			—			240
Income (loss) from equity investee	13,633			6,101			(70		)	(19,664		)	—
Interest expense (income)—net	531			346			(223		)	—			654
Earnings (Loss) from Continuing Operations before Income Taxes	(6,973		)	13,903			7,654			(19,623		)	(5,039		)
Income taxes	281			—			2,194			—			2,475
Net Earnings (Loss) from Continuing Operations	(7,254		)	13,903			5,460			(19,623		)	(7,514		)
Net Earnings from Discontinued Operations	—			260			—			—			260
Net Earnings (loss)	$	(7,254	)	$	14,163		$	5,460		$	(19,623	)	$	(7,254	)

Other Comprehensive Income (Loss), Net of Tax	(51,360		)	(4,510		)	(48,811		)	53,321			(51,360		)

Comprehensive Income (Loss)	$	(58,614	)	$	9,653		$	(43,351	)	$	33,698		$	(58,614	)



Three month period ended March 31, 2014
Net sales	$	50,109		$	101,886		$	173,800		$	(21,294	)	$	304,501
Cost of products sold	45,704			75,471			121,890			(21,357		)	221,708
Gross Profit	4,405			26,415			51,910			63			82,793
Selling, general and administrative expenses	31,650			21,049			44,103			—			96,802
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		)	748			157			—			621
Earnings (Loss) from Continuing Operations before Income Taxes	(17,815		)	11,644			6,443			(17,142		)	(16,870		)
Income taxes (benefit)	161			(200		)	2,064			—			2,025
Net Earnings (Loss) from Continuing Operations	(17,976		)	11,844			4,379			(17,142		)	(18,895		)
Net Earnings from Discontinued Operations	—			919			—			—			919
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 BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
March 31, 2015	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	4,801	$	348	$	15,469	$	—		$	20,618
Trade receivables, net	54,966		24,439		84,259		—			163,664
Installment receivables, net	—		305		783		—			1,088
Inventories, net	15,900		27,540		109,648		(2,113		)	150,975
Deferred income taxes	—		—		1,982		—			1,982
Intercompany advances, net	10,816		412		82,028		(93,256		)	—
Other current assets	7,849		475		34,333		(3,090		)	39,567
Total Current Assets	94,332		53,519		328,502		(98,459		)	377,894
Investment in Subsidiaries	1,369,574		499,032		—		(1,868,606		)	—
Intercompany Advances, net	1,067,878		1,712,164		183,862		(2,963,904		)	—
Other Assets	4,807		868		760		—			6,435
Other Intangibles	231		440		33,448		—			34,119
Property and Equipment, net	28,140		12,062		40,225		—			80,427
Goodwill	—		16,660		369,967		—			386,627
Total Assets	$	2,564,962	$	2,294,745	$	956,764	$	(4,930,969	)	$	885,502
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	52,840	$	9,761	$	56,807	$	—		$	119,408
Accrued expenses	43,316		22,424		78,006		(3,090		)	140,656
Current taxes, payable and deferred	2,621		—		9,789		—			12,410
Intercompany advances, net	76,059		1,666		15,531		(93,256		)	—
Short-term debt and current maturities of long-term obligations	—		8		835		—			843
Total Current Liabilities	174,836		33,859		160,968		(96,346		)	273,317
Long-Term Debt	18,642		4		3,420		—			22,066
Other Long-Term Obligations	28,364		—		54,832		—			83,196
Intercompany advances, net	1,836,197		1,070,826		56,880		(2,963,903		)	—
Total Shareholders’ Equity	506,923		1,190,056		680,664		(1,870,720		)	506,923
Total Liabilities and Shareholders’ Equity	$	2,564,962	$	2,294,745	$	956,764	$	(4,930,969	)	$	885,502

CONSOLIDATING CONDENSED BALANCE SHEETS



	The Company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
December 31, 2014	(in thousands)
Assets
Current Assets
Cash and cash equivalents	$	7,340	$	355	$	31,236	$	—		$	38,931
Trade receivables, net	50,656		24,560		85,198		—			160,414
Installment receivables, net	—		292		762		—			1,054
Inventories, net	25,272		25,848		107,139		(2,383		)	155,876
Deferred income taxes	—		—		2,048		—			2,048
Intercompany advances, net	10,007		976		84,816		(95,799		)	—
Other current assets	8,134		397		33,123		(4,635		)	37,019
Total Current Assets	101,409		52,428		344,322		(102,817		)	395,342
Investment in Subsidiaries	1,409,482		491,541		—		(1,901,023		)	—
Intercompany Advances, net	1,049,235		1,685,366		184,651		(2,919,252		)	—
Other Assets	16,955		656		1,442		—			19,053
Other Intangibles	286		450		37,334		—			38,070
Property and Equipment, net	29,686		13,051		42,818		—			85,555
Goodwill	—		16,660		409,051		—			425,711
Total Assets	$	2,607,053	$	2,260,152	$	1,019,618	$	(4,923,092	)	$	963,731
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	49,040	$	6,362	$	64,749	$	—		$	120,151
Accrued expenses	52,022		20,900		88,188		(4,635		)	156,475
Current taxes, payable and deferred	1,632		—		11,002		—			12,634
Intercompany advances, net	81,141		1,738		12,920		(95,799		)	—
Short-term debt and current maturities of long-term obligations	—		8		959		—			967
Total Current Liabilities	183,835		29,008		177,818		(100,434		)	290,227
Long-Term Debt	15,351		6		4,020		—			19,377
Other Long-Term Obligations	28,551		—		60,254		—			88,805
Intercompany advances, net	1,813,994		1,051,170		54,088		(2,919,252		)	—
Total Shareholders’ Equity	565,322		1,179,968		723,438		(1,903,406		)	565,322
Total Liabilities and Shareholders’ Equity	$	2,607,053	$	2,260,152	$	1,019,618	$	(4,923,092	)	$	963,731

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS



	The Company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Total
Three month period ended March 31, 2015	(in thousands)
Net Cash Provided (Used) by Operating Activities	$	(19,001	)	$	4,918		$	(8,708	)	$	—	$	(22,791	)
Investing Activities
Purchases of property and equipment	(30		)	(200		)	(2,588		)	—		(2,818		)
Proceeds from sale of property and equipment	30			47			1			—		78
Other long-term assets	12,826			—			566			—		13,392
Other	257			(260		)	—			—		(3		)
Net Cash Provided (Used) for Investing Activities	13,083			(413		)	(2,021		)	—		10,649
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	71,064			—			—			—		71,064
Payments on revolving lines of credit and long-term borrowings	(66,097		)	(4,512		)	(3,024		)	—		(73,633		)
Proceeds from exercise of stock options	200			—			—			—		200
Payment of financing costs	(1,391		)	—			—			—		(1,391		)
Payment of dividends	(397		)	—			—			—		(397		)
Net Cash Provided (Used) by Financing Activities	3,379			(4,512		)	(3,024		)	—		(4,157		)
Effect of exchange rate changes on cash	—			—			(2,014		)	—		(2,014		)
Decrease in cash and cash equivalents	(2,539		)	(7		)	(15,767		)	—		(18,313		)
Cash and cash equivalents at beginning of year	7,340			355			31,236			—		38,931
Cash and cash equivalents at end of period	$	4,801		$	348		$	15,469		$	—	$	20,618

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
Increase (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