Bernstein Litowitz Berger & Grossmann LLP and the Law Offices Bernard M. Gross, P.C. File Class Action Against Graham-Field Health Products, Inc.

NEW YORK--(BUSINESS WIRE)--March 27, 1998--Pursuant to 15 U.S.C. 78u-4(a)(3)(A)(I), Bernstein Litowitz Berger & Grossmann LLP and Law Offices Bernard M. Gross, P.C. hereby give notice that on March 26, 1998, a class action lawsuit was filed in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Graham-Field Health Products, Inc. ("Graham-Field" or the "Company") from January 20, 1998 through March 23, 1998, inclusive (the "Class Period").

The complaint charges Graham-Field and certain of its officers and directors with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges that throughout the Class Period, defendants caused Graham-Field to disseminate to the public false and misleading information regarding the Company's December 1997 acquisition of Fuqua Enterprises, Inc., and the impact that this acquisition would have on the Company's fiscal fourth quarter earnings. At the beginning of the Class Period, the Company assured investors and analysts that the integration process of the Fuqua Acquisition was proceeding smoothly and that the Company would report fourth quarter earnings in the high range of analyst expectations, approximately $.14 to $.15 per share. On March 23, 1998, less than two months after the Company has assured investors that the integration of Fuqua was on schedule and according to plan, the Company stunned the market by announcing that it had, in fact, been completely unable to successfully integrate Fuqua into its operations, and that the Company would take a charge against earnings of $36.2 million, causing it to report a net loss for the fourth quarter of more than $31 million, or $1.47 a share. When the facts were publicly reported at the end of the Class Period, Graham-Field common stock lost more than two-thirds of its value as shares fell almost $12 from approximately $20 per share to $8 per share.

Plaintiff is represented by the law firm of Bernstein Litowitz Berger & Grossmann LLP and Law Offices Bernard M. Gross, P.C, who have extensive experience in prosecuting class actions nationwide on behalf of defrauded investors. The firms currently play leading roles in numerous major securities and complex commercial litigation pending in federal and state courts.

If you wish to discuss this Action or have any questions concerning this notice or your rights or interests in connection therewith, please contact Vincent R. Cappucci, a partner in Bernstein Litowitz Berger & Grossmann LLP, at [phone] or [phone] or by E-mail: [e-mail], or Deborah R. Gross, a partner at the Law Offices Bernard M. Gross, P.C., at [phone] or by E-mail: [e-mail]..

If you are a member of the Class described above, you may, not later than May 26, 1998, move the Court to serve as lead plaintiff for the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish detailed information about the firm or have any questions concerning your rights or interests in this case, please visit our website at http://www.blbglaw.com.

CONTACT: Bernstein Litowitz Berger & Grossmann LLP

Ava C. Thorin, [phone]

or

Law Offices Bernard M. Gross, P.C.

Deborah Gross, [phone]