EP MEDSYSTEMS REPORTS THIRD QUARTER RESULTS:
QUARTERLY REVENUES INCREASE 37%;
YEAR TO DATE REVENUES INCREASE 36%.

MT. ARLINGTON, NJ (November 14, 2002) -- EP MedSystems, Inc. (NASDAQ: EPMD) today announced the results from its third quarter ended September 30, 2002. Compared to the third quarter 2001, revenue increased 37% from $2,483,000 to $3,411,000. For the nine months ended September 30, 2002, record sales were recorded, as revenues rose 36% as compared to the nine months ended September 30, 2001, from $6,964,000 to $9,495,000. Excluding a one time charge of $1,119,000, the loss from operations for the third quarter was $1,383,000 compared to $1,036,000 the same period in the prior year. Net loss for the quarter, including the one time charge, was $2,555,000. The net loss for the nine months was $3,891,000 compared to $3,550,000 during the same period last year.

The one time charge of $1,119,000, (of which $1,042,000 was a non-cash write-off of capitalized professional fees and deferred offering costs incurred in the prior year) was in connection with a common stock purchase agreement for the sale of up to $10 million of common stock. During the third quarter, the Company determined that the purchase agreement would not be the first form of financing given other funding the company has closed or is pursuing, including a previously announced equity investment from Boston Scientific, a proposed mortgage and bank line of credit. On November 13, 2002, the Company terminated the common stock purchase agreement. The net loss increased from $1,105,000 for the three months ended September 30, 2001 to $2,555,000 in the current period, reflecting the charge described above.

Gross profit in the third quarter 2002 was $1,442,000 or 42% vs. $1,337,000 or 54% in 2001. The decrease in gross profit percentage was due to a lower margin on the sale of fluoroscopy units and a higher number of recording units sold outside the United States to distributors, for which there is lower margin. The Company anticipates returning to a normalized mix in the fourth quarter including higher U.S. sales of the EP WorkMate® computerized cardiac electrophysiology workstation.

General and administration costs increased from $545,000 to $822,000 in the third quarter 2002, as the result of initiatives in corporate strategic areas, including the Boston Scientific agreement which was concluded in the third quarter. Research and development expenses also increased, from $633,000 to $813,000, due to late stage validation testing and regulatory actions taken in regards to our new product filings, as well as on going support in closing the ALERT® System PMA.

At September 30, 2002, the Company held cash and cash equivalents of $1,980,000 as compared to $2,343,000 at December 31, 2001.

Reinhard Schmidt, EPMD’s President and Chief Executive Officer, commented, ”We are pleased with the record results in top line revenues as we complete the product approvals of two major new product lines that should contribute accelerated revenue growth in the coming year. These two product lines, the ALERT® family of internal cardioversion catheters, and the ViewMate intracardiac ultrasound imaging system, will allow us to bring disposable products into our revenue mix at a much higher level of predictability. In addition, these unique product lines give us the ability to grow much faster and reach a greater customer base. We expect both product lines to be on the market and producing revenue in the first quarter of next year, absent any unforeseen regulatory hurdles. We look forward to near term announcements regarding the regulatory approvals and launching of these products.”

EP MedSystems develops and markets cardiac electrophysiology (“EP”) products used to diagnose and treat certain disorders of cardiac rhythm. 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. EPMD’s shareholders include Medtronic (NYSE: MDT), Century Medical, EGS Partners, H & Q Lifesciences, and Cardiac Capital LLC. 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.

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:
Joseph M. Turner, CFO
(973) 398-2800