EP MEDSYSTEMS REPORTS FIRST QUARTER RESULTS;
SALES INCREASE 45%, LOSS DECREASES 45%

MT. ARLINGTON, NJ (May 6, 2002)--EP MedSystems, Inc. (NASDAQ: EPMD) is pleased to report operating results for the three months ended March 31, 2002. Net Sales increased 45% to $2,989,000 from $2,068,000 for the same period in 2001. Net loss decreased 45% to $702,000, or $0.05 per share as compared to $1,274,000, or $0.11 per share for the same period in 2001.

Reinhard Schmidt, EPMD’s President and COO commented, “We continue to see improvement in operating performance through growth in revenues and cost improvement. Top-line comparisons for the first quarter 2002 to the comparable prior year quarter is favorable primarily due to continued market acceptance of the new NT WorkMate platform, that began in the prior quarter and continued improvements in catheter and EP-3 Stimulator sales.” Mr. Schmidt stated further, “We are especially satisfied with our operating improvement primarily in margin improvement to 59% from 54%, cost of sales reduction to 41% from 46% and the 40% reduction in interest expense. Our product pipeline continues to hold strong promise in the current year as we focus on completing the regulatory process and rollout of the ALERT“ System in North America, followed by the ViewMate‘ Ultrasound System and SilverFlex“. ”

Mr. Joseph M. Turner, EP MedSystems’ CFO, commented, “We are pleased to have reduced our net loss by approximately 45% compared to the prior year quarter and we continue to focus on improving our operating performance.”

As previously announced, the Company will host a conference call to discuss first quarter 2002 financial results at 11:00 A.M. E.D.T. To participate, call 800-370-0906. When prompted, give the operator your name, firm and phone number. Please call five minutes in advance to ensure that you are connected prior to the call’s initiation.

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.

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.

We caution you to review the cautionary statements set forth in this Release and in the Company's reports filed with the Securities and Exchange Commission and caution you further that other factors may prove to be important in affecting the Company's business and results of operations. Please do not place undue reliance on forward-looking statements, which speak only as of the date of this Release. We undertake 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 Release or to reflect the occurrence of anticipated events.


For Further Information Contact:
Joseph M. Turner, CFO
(973) 398-2800