West Berlin, NJ (May 16, 2005)--EP MedSystems, Inc. (NASDAQ: EPMD), a market leader in electrophysiology products used in cardiac rhythm management, today announced financial results for the three months ended March 31, 2005. Revenue for the quarter increased 21% to $3,476,000 from the $2,884,000 reported in three months ended March 31, 2004. The gross margin for the three months ended March 31, 2005 increased to 63%, compared to 58% for the comparable period in 2004. The net loss for the quarter decreased to $1,408,000, when compared to $1,466,000 reported in the first quarter of 2004. The basic and diluted loss per share for the three months ended March 31, 2005, was $0.05 which compared to $0.06 for the comparable period in 2004.

Reinhard Schmidt, EP MedSystems' President and Chief Executive Officer commented, “We are very pleased with the 20% growth achieved over the prior year's quarter. In addition to expected historical first quarter seasonality of capital equipment sales, following our record 4th quarter, we saw 27% consumable sales growth over the 4th quarter of 2004. This increase in consumable sales contributed to our continued margin improvement and provides confidence that our newer consumable products are beginning to take hold. Building on the record performance in 2004, we anticipate strong growth over prior year quarters in both capital and consumable products for the balance of the year.”

Mr. Schmidt further commented, “We continue to see increased sales growth from the investments we have made in our expanded field organization and expect operating improvements driven by new product features, the announcement of the joint development agreement with Philips and the recently announced ICE CHIP study utilizing our ViewMate® and ViewFlex™ intracardiac ultrasound platform.”


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™ Real-time Position Management™ navigation technology, the EP-4Í 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. 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”, 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; and risks regarding regulatory approvals and demand for new and existing products, as stated in the Company's Annual Report filed on Form 10-KSB and quarterly reports filed on Form10-Q and 10-QSB.

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 release or to reflect the occurrence of unanticipated events.

For Further Information Contact:

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

MKR Group, LLC
Charles Messman, Todd Kehrli
(818)556-3700