Exhibit 99.1

		500 Expressway Drive South, Brentwood, NY 11717  Phone: 631.231.4600  www.medical-action.com

FOR IMMEDIATE RELEASE

MEDICAL ACTION INDUSTRIES REPORTS

FOURTH QUARTER AND FISCAL 2012 RESULTS

BRENTWOOD, NY, June 14, 2012 – Medical Action Industries Inc. (the “Company” or “Medical Action”) (NASDAQ/MDCI), a leading supplier of medical and surgical disposable products, today reported results for the fourth quarter and fiscal year ended March 31, 2012.

Net sales for the fourth quarter of fiscal 2012 were $108.2 million, an increase of $3.0 million or 3%, compared to $105.3 million in net sales reported for the comparable prior year period. The Company incurred a net loss for the fourth quarter of fiscal 2012 of $2.5 million or $0.15 per basic and diluted share, compared to net income of $1.1 million or $0.07 per basic and diluted share, reported for the comparable prior year period. When compared to the comparable prior year period, the results for the fourth quarter of fiscal 2012 were negatively impacted by $1.2 million in higher resin costs, $0.8 million relating to a one-time tax valuation allowance against certain state net operating loss carry forwards and $0.4 million in higher costs of products procured from China-based vendors.

Net sales for fiscal 2012 were $437.3 million, an increase of $74.8 million or 21% from the $362.5 million in net sales reported for fiscal 2011. In fiscal 2011 (August 2010), the Company acquired AVID Medical, Inc. (“AVID”); therefore fiscal 2011 reported results included approximately seven months of AVID results. Excluding AVID, Medical Action’s net sales for fiscal 2012 were $298.9 million, representing a comparable increase of $17.8 million or 6% from fiscal 2011. During fiscal 2012, AVID generated net sales of $138.5 million, an increase of approximately 1% over the twelve months ended March 31, 2011 of $137.2 million, of which $81.5 million were included in Medical Action’s fiscal 2011 results.

The increase in net sales, excluding AVID, was comprised of $17.0 million in higher volumes and $0.8 million in higher average selling prices. The increase in volumes was predominantly attributable to higher domestic market penetration in our Patient Care market of $10.5 million and our Clinical Care market of $6.5 million. The increase in average selling prices

resulted principally from net price increases of $1.4 million on certain products associated with our Clinical Care market. These were partially offset by a $0.6 million decrease in the aggregate average selling price of our Patient Care market. These pricing fluctuations are significantly influenced by competitive pressures, the renewal of certain Group Purchasing Organization supply agreements and a change in the mix of products purchased by our customers.

Net income for fiscal 2012 was $0.2 million or $0.01 per basic and diluted share, versus the $4.4 million or $0.27 per basic and diluted share reported for fiscal 2011. Included in net income for fiscal 2012 was an extraordinary pre-tax gain of $0.7 million or $0.03 per basic and diluted share (net of applicable tax expense) due to an insurance settlement related to inventories damaged in fiscal 2011 as a result of weather-related flooding. Net income for fiscal 2011 included an extraordinary pre-tax loss of $1.5 million or $0.05 per basic and diluted share (net of applicable tax benefit) due to inventories damaged as a result of weather-related flooding and one-time pre-tax transaction costs of $1.3 million related to the acquisition of AVID.

As of March 31, 2012, the Company’s cash on hand was $5.3 million and working capital was $60.6 million. Additionally, the Company generated operating cash flow of $4.0 million during the twelve months ended March 31, 2012.

On June 7, 2012, the Company entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”), which governs our borrowings. As of June 14, 2012, the Company had $70.7 million in borrowings outstanding under the Credit Agreement and $5.3 million available for borrowing under the Credit Agreement. The Company believes that the anticipated future operating cash flow, coupled with cash on hand and available funds under the Credit Agreement, should enable us to allocate funds for purposes such as capital expenditures, marketing, product development and other general corporate purposes.

“We continue to focus on organic growth and improving profitability, as well as delivering exceptional service to our customers,” said Chief Executive Officer and President, Paul D. Meringolo. “Net sales have increased from the comparable prior year period however profitability was down. Competitive pricing pressures and persistent volatility in raw material costs, particularly resin and cotton, continue to influence our gross profits. As announced in April, we are realigning our business into strategic business units in order to increase focus on targeted market segments. Finally, we are pleased to have renegotiated a credit agreement with our lenders which provides the Company with greater flexibility to focus on the business and our operating plans.”

Medical Action invites its stockholders and other interested parties to attend its conference call at 10:00 a.m. (ET) on June 14, 2012. You may participate in the conference call by calling (877) 637-9564 (domestic) or (973) 935-8511 (international); conference ID #89890094. The conference call will be simultaneously web cast on our website: www.medical-action.com. The complete call and discussion will be available for replay on our website beginning at 1:00 p.m. (ET) on June 14, 2012.

Medical Action is a diversified manufacturer and distributor of disposable medical devices and a leader in many of the markets where it competes. Its products are marketed primarily to acute care facilities in domestic and certain international markets. The Company has expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers, long-term care facilities and laboratories. Medical Action’s products are marketed nationally by its direct sales

2

personnel and extensive network of healthcare distributors. The Company has preferred vendor agreements with national and regional distributors, as well as sole and multi-source agreements with group purchasing organizations. Medical Action’s common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.

# # # #

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements for purposes of these provisions, including any projections of earnings, revenues or other financial items, any statements of the plans and objectives for management for future operations, any statements concerning proposed new products or services, any statements regarding future economic conditions or performance, and any statements of assumptions underlying any of the foregoing. All forward-looking statements included in this news release are made as of the date hereof and are based on information available to us as of such date. The Company assumes no obligation to update any forward-looking statement. In some cases, forward-looking statements can be identified by the use of terminology such as “may,” “will,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “potential,” or “continue,” or the negative thereof or other comparable terminology. Although the Company believes that the expectations reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations or any of the forward-looking statements will prove to be correct, and actual results could differ materially from those projected or assumed in the forward-looking statements. Future financial condition and results of operations, as well as any forward-looking statements, are subject to inherent risks and uncertainties, including manufacturing inefficiencies, termination or interruption of relationships with our suppliers, potential delays in obtaining regulatory approvals, product recalls, product liability claims, our inability to successfully manage growth through acquisitions, our failure to comply with governing regulations, risks of international procurement of raw materials and finished goods, market acceptance of our products, market price of our Common Stock, foreign currency fluctuations, resin volatility and other factors referred to in our press releases and reports filed with the Securities and Exchange Commission (the “SEC”). Please see the Company’s filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Qs, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.

3

Medical Action Industries Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data)

4

Medical Action Industries Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

5

Medical Action Industries Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands, except share data)

6

Medical Action Industries Inc.

Consolidated Statements of Cash Flows

(In thousands)

7