EP MEDSYSTEMS REPORTS THIRD QUARTER RESULTS

MT. ARLINGTON, N.J. (November 14, 2001) -- EP MedSystems, Inc. (NASDAQ: EPMD) is pleased to report operating results for the three months ended September 30, 2001. Net sales were $2,483,000 and the net loss was $1,105,000, or $0.08 per share. This represents a 3% increase in net sales and a 6% improvement in net loss compared to the previous quarter of this year. Net Sales for the nine months ended September 30, 2001 were $6,964,000 as compared to $7,756,000 in 2000. The basic and diluted loss per share for the nine months ended September 30, 2001 was $0.24 per share as compared to $0.27 for the same period in 2000.

Reinhard Schmidt, EPMD’s President and COO commented, “We are focused on the development and roll-out of the existing pipeline of products and the current EP-WorkMate® platform which is a leader in EP labs with over 375 installations worldwide. We see our platform as a key strength to leverage future technologies being developed not only by us, but by other companies as well. We believe that recent cost reduction initiatives taken in the last month will improve our cost structure in the coming year. In addition, we continue to be optimistic that we will experience growth in the coming year as we roll-out the ALERT® System in North America and the intracardiac ultrasound imaging platform worldwide following receipt of regulatory approval. We anticipate stronger operating performance in the 4th quarter due to our recent cost reductions and expected growth in top line revenues in our core EP-WorkMate® product as a result of the roll-out of hardware improvements which commenced in the third quarter.”

Mr. Schmidt, stated further, “The comparisons to the prior year are unfavorable on top line revenues (approximately 9% for the quarter) primarily due to lower sales orders in Asia and the Pacific Rim resulting in part from the delay in roll-out of hardware improvements to our EP-WorkMate® to this region until the fourth quarter. On an operating basis, we expect to continue to maintain the improvement in operations while expanding top line revenues. We continue to be pleased by our strong U.S. performance in the EP-Workmate® line and are focused on improving worldwide sales in the coming months across the product lines. ”

Mr. Joseph M. Turner, EP MedSystems’ CFO, commented, “We are pleased to have concluded recent financings including consummation of the $10 million equity line with Fusion Capital and a $2.4 million investment by Medtronic, Inc., a shareholder, and Century Medical, Inc., an EPMD distributor in Japan. The improvement in our cash resources will allow us to focus efforts on improving our operating results and building and delivering value to our shareholders.”

As previously announced, EPMD has scheduled a conference call to discuss the third quarter 2001 financial results. The call is scheduled to take place Thursday, November 15, 2001 at 11:00 a.m. Eastern Standard Time. To participate, call 800-370-0906. When prompted, give the operator your name, firm and phone number.

EP MEDSYSTEMS, INC. SELECTED FINANCIAL DATA
(Unaudited)

Balance Sheet Data				At September 30, 2001					At December 31, 2000
Cash and cash equivalents				$810,000					$302,000
Working capital				4,488,000					2,945,000
Total assets				9,492,000					8,417,000
Total liabilities				5,896,000					4,480,000
Shareholder's equity				3,596,000					3,937,000

EP MedSystems develops and markets cardiac electrophysiology (“EP”) products used to diagnose and treat certain disorders of cardiac rhythm. EP Med’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 Med is also involved in the development of an intracardiac ultrasound imaging system, expected to be on the market next year.

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 and the scheduled interview contain certain statements of a forward-looking nature relating to future events or the future financial performance of EP Med. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. We emphasize to you that a variety of factors could cause EP Med’s actual results and experience to differ materially from the anticipated results or other expectations expressed in EP Med’s forward-looking statements. When we use the words or phrases “believes,” “anticipates,” “expects,” “intends,” “will likely result,” “estimates,” “projects” or similar expressions in the release, we intend these to identify such forward-looking statements, but they are not the exclusive means of identifying such statements. 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 Med’s history of losses, uncertainty of future profitability and future liquidity needs, unpredictability of action by the U.S. Food and Drug Administration, technological advances of competitors, lack of demand for new and existing products, particularly ALERT® System, and changes in global and localized economic and political conditions, including the effects of acts of war and/or terrorism.

EP Med cautions investors and others to review the cautionary statements set forth in this 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 EP Med’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. EP Med 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:
Joseph M. Turner, CFO
(973) 398-2800