EPMD REPORTS FIRST QUARTER RESULTS;
EPMD SIGNS AGREEMENT WITH FISCHER IMAGING, INC. TO DISTRIBUTE ELECTROPHYSIOLOGY FLUOROSCOPY SYSTEMS;
CONFERENCE CALL SCHEDULED

MT. ARLINGTON, NJ (May 9, 2001) -- EP MedSystems, Inc. (NASDAQ: EPMD) is pleased to report operating results for the three months ended March 31, 2001. Net sales were $2,068,000 and the net loss was $855,000, or $0.07 per share. This represents a 3% increase in net sales and a reduction in net loss of $823,000 compared to the fourth quarter of last year.

The Company has scheduled a conference call to discuss first quarter 2001 financial results. The call is scheduled to take place Wednesday, May 9, 2001 at 10:00 am Eastern Time. To participate, call 800-370-0906. When prompted, give the operator your name, firm and phone number.

David A. Jenkins, Chairman and CEO of EPMD, stated “Shipments of the EP-WorkMate‘ were lower in this quarter compared to one year ago. However, we remain optimistic on total shipments for the year, and we continue to manage our expenses closely as we await regulatory approvals for our new disposable products. These new disposable products, which have been in development for some time, include the ALERT® System and the ViewMate‘ ultrasound imaging system. Both of these product lines are expected to contribute substantially to growth in the future. The PMA for our ALERT® System to treat atrial fibrillation has been filed, the FDA has responded to us with questions and comments, and we are hopeful that we can favorably conclude our discussions with the FDA and file our responses in the very near term.”

EPMD is also pleased to announce that it has executed a distribution agreement with Fischer Imaging, Inc. (NASDAQ: FIMG), whereby EPMD will, with certain exceptions, exclusively distribute the Fischer EPX single plane and EPX-2 biplane fluoroscopy systems into the cardiac electrophysiology market. The agreement also allows EPMD to sell Fischer’s Bloom stimulator products on a non-exclusive basis.

David Jenkins, EPMD’s Chief Executive Officer, commented: “We are tremendously excited about this relationship and the opportunity it presents to EPMD. We hope that this opportunity will result in a significant and positive effect on our top line sales revenues and on our operating results. We believe these positive effects may be achieved with limited strain on our existing sales force, which is currently calling on this marketplace with the sales of our own capital equipment, the EP-WorkMate‘ computerized electrophysiology workstation.” Mr. Jenkins continued, “The Fischer Imaging products have a number of market advantages, including a superior design, lower pricing, a smaller footprint, and depending on customer usage, potentially lower radiation exposure. We intend to have a list price of approximately $550,000 for the EPX single plane device, and $950,000 for the EPX-2 biplane device.”

Mr. Jenkins, stated further, “Both Fischer Imaging and EPMD attended the annual North American Society of Pacing and Electrophysiology conference last week in Boston. We generated over 125 sales leads across all product lines. We anticipate an increased interest in our equipment due to the emergence of interest amongst cardiologists in new bi-ventricular pacing technologies for the treatment of congestive heart failure. This technology will lead to an increase in procedures which we anticipate will most often be performed in the electrophysiology lab environment where EP MedSystems provides both the catheters and monitoring equipment to facilitate these types of procedures.”

EP MedSystems develops and markets cardiac electrophysiology (“EP”) products used to diagnose and treat certain cardiac arrhythmia disorders. The Company’s EP product line includes the EP-WorkMate® Electrophysiology Workstation, the EP-3‰ Stimulator, diagnostic electrophysiology catheters, internal cardioversion catheters and related disposable supplies.

EP MEDSYSTEMS, INC. SELECTED FINANCIAL DATA
(Unaudited)

			Three Months Ended
			March 31,
Income Statement Data			2001			2000
Net Sales			$2,068,323			$2,902,983
Cost of products sold			950,828			1,373,237
Gross Profit			1,117,495			1,529,746
Operating expenses
Sales and marketing			1,102,037			1,257,276
General and administrative			556,179			501,944
Research and development			646,123			631,762
Loss from operations			(1,186,844)			(861,236)
Interest (expense) income, net			(90,010)			9,589
Other income, net			422,182			216,812
Net Loss			$(854,672)			$(634,835)
Basic and diluted loss per share			$(.07)			$(.06)
Weighted Average
Shares Outstanding			12,095,549			11,380,933

Balance Sheet Data			At March 31, 2001
Cash and cash equivalents			$3,108,000
Working capital			6,832,000
Total assets			11,826,000
Total liabilities			5,692,000
Shareholder's equity			6,135,000

The ALERT® catheter is proprietary and used in tandem with the ALERT® Companion to deliver a bi-phasic low energy waveform used to convert atrial fibrillation to a normal (sinus) heart rhythm. The ALERT® System has been shown to use about 50 times less energy for cardioverion than the standard external “paddles”. EPMD estimates that there are approximately 5 million people worldwide with atrial fibrillation; a disease associated with reduced cardiac output, congestive heart failure, and stroke. For more information visit our Website at www.epmedsystems.com.

This Release contains certain statements of a forward-looking nature relating to future events or the future financial performance of the Company. 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, the Company’s history of losses, uncertainty of future profitability and future liquidity needs; and risks regarding demand for new and existing products, particularly ALERT® System.

The Company cautions investors and others to review the cautionary statements set forth in this Release and in the Company's reports filed with the Securities and Exchange Commission and cautions that other factors may prove to be important in affecting the Company's business and results of operations. Readers are cautioned not to place undue reliance on the interview and other forward-looking statements, which speak only as of the date of this release. The Company 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 anticipated events.

For Further Information Contact:

Matthew C. Hill, Chief Financial Officer
(856) 753-8533