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WEST BERLIN,
N.J.--(BUSINESS WIRE)—November 9, 2006--EP
MedSystems, Inc. (NASDAQ: EPMD - News)
today announced that
the Company has executed a Settlement Agreement with
the Bureau of Industry and Security of the United
States Department of Commerce to close issues
related to its shipment of products to restricted
countries in 2004 and earlier. In the Settlement
Agreement the Company does not admit or deny guilt,
but agrees to pay a fine of $244,000 with no
restrictions on commercial or export activities.
The Company had accrued $345,000 for this penalty in
its books as of June 30, 2006 based on the proposed
charging letter at the time.
In addition, the Company has made a settlement offer
to the U.S. Department of the Treasury in connection
with an investigation of these shipments and is
awaiting a response from the Department. The
Treasury Department has orally indicated to the
Company that the maximum penalty it might seek would
be $44,000.
Given that any investigations by the Treasury
Department or the Securities and Exchange Commission
have not been closed, the Company cannot rule out
additional civil or administrative fines or
penalties at this time. The Company has made no
provision for any future costs associated with these
investigations or any costs associated with the
Company’s defense or negotiations with the various
governmental entities to resolve these outstanding
issues.
David Bruce, EP MedSystems’ new President and Chief
Executive Officer stated, ”We are pleased to put the
Department of Commerce issue behind us and focus on
the market opportunities for EP MedSystems. We
continue to cooperate with the other governmental
entities in hopes that we can close any remaining
issues as quickly as possible. “
About EP MedSystems:
EP MedSystems develops and
markets cardiac electrophysiology ("EP") products
used to diagnose and treat certain cardiac rhythm
disorders. The Company's EP product line includes
the EP-WorkMate® Electrophysiology Workstation with
RPM(TM) Real-time Position Management(TM) navigation
technology, the EP-4(TM) Computerized Cardiac
Stimulator, fixed and deflectable diagnostic
electrophysiology catheters and related disposable
supplies, the ALERT® System and ALERT family of
internal cardioversion catheters, and the ViewMate®
intracardiac ultrasound catheter imaging system. For
more information, visit our website at
www.epmedsystems.com.
Forward Looking Statements:
This Release may contain
certain statements of a forward-looking nature
relating to future events or the future financial
performance of the Company. Forward-looking
statements include information concerning our
possible or assumed future results of operations and
statements preceded by, followed by or including the
words "believes", "expects", "anticipates",
"intends", "plans", "estimates", "see opportunities"
or similar expressions. Such forward-looking
statements are based on our management's beliefs and
assumptions and on information currently available
to our management. Such forward-looking statements
are only predictions and are subject to risks and
uncertainties that could cause actual results or
events to differ materially and adversely from the
events discussed in the forward-looking statements.
Factors that could cause or contribute to such
differences include, but are not limited to, EP
MedSystems' history of losses, uncertainty of market
acceptance of our products and level of sales,
uncertainty of future profitability and future
liquidity needs, possible costs, fines or penalties
that may be incurred in connection with government
inquiries and investigations and risks regarding
regulatory approvals and demand for new and existing
products, as stated in the Company's Annual Report
filed on Form 10-K and Quarterly Reports filed on
Form 10-Q.
EP MedSystems cautions investors
and others to review the cautionary statements set
forth in this press release and in EP MedSystems'
reports filed with the Securities and Exchange
Commission and cautions that other factors may prove
to be important in affecting the EP MedSystems'
business and results of operations. Readers are
cautioned not to place undue reliance on this press
release and other forward-looking statements, which
speak only as of the date of this release. EP
MedSystems undertakes no obligation to publicly
release the results of any revisions to these
forward-looking statements that may be made to
reflect events or circumstances after the date of
this report or to reflect the occurrence of
unanticipated events.
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