EP MEDSYSTEMS REPORTS QUARTER AND YEAR END RESULTS
CONFERENCE CALL SCHEDULED

MT. ARLINGTON, NJ (March 25, 2002)--EP MedSystems, Inc. (NASDAQ: EPMD) today announced sales for the fourth quarter totaled $2,967,000 as compared to $2,004,000 in 2000 and $2,483,000 for the third quarter 2001. Loss from operations was $963,000 for the fourth quarter as compared to $1,486,000 for the comparable period in 2000. The basic and diluted loss per share was $0.07 per share for the fourth quarter and $0.14 for the comparable period in 2000.

Sales for the year ended December 31, 2001 were $9,933,000 as compared to $9,760,000 in 2000. Net loss for the year improved to $4,145,000 as compared to a net loss of $4,836,000 during 2000. The basic and diluted loss per share for the year was $0.31 in 2001 vs. $0.41 in 2000.

Reinhard Schmidt, EPMD’s President and COO commented, “We continue to see improvement in operating performance based on cost reduction initiatives taken and growth in revenues. Top-line comparison for the fourth quarter 2001 to the comparable prior year quarter and third quarter 2001 are both favorable primarily due to market acceptance of the new NT WorkMate platform and continued improvements in catheter and EP-3 Stimulator sales. We expect this to continue in 2002.” Mr. Schmidt stated further, “The completion of 2001 closes a transition year for myself and the organization. I continue to expect improved operating performance in the year ahead. Our product pipeline continues to hold strong promise in the coming 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 over 14% compared to the prior year and we look forward to continued improvement in our operating results. We ended the year with over $2.3 million in cash and have made great strides in improving our operating performance and bolstering our cash reserves.”

The Company has scheduled a conference call to discuss its 2001 year end results. The call is scheduled to take place Tuesday, April 2, 2002 at 11:00 am Eastern Time. To participate, call 877-241-6895. When prompted, give the operator your name, firm and phone number.

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.

EP MEDSYSTEMS, INC. SELECTED FINANCIAL DATA
(Unaudited)

		Twelve Months Ended
		December 31,
Income Statement Data		2001		2000
Sales		$9,933,000		$9,760,000
Cost of products sold		4,652,000		4,433,000
Gross Profit		5,281,000		5,327,000
Operating expenses
Sales and marketing		4,789,000		5,144,000
General and administrative		2,237,000		2,265,000
Research and development		2,521,000		2,788,000
Loss from operations		(4,266,000)		(4,870,000)
Interest (expense) income, net		(282,000)		(106,000)
Other income, net		403,000		140,000
Net Loss		(4,145,000)		(4,836,000)
Basic and diluted net loss per share		$(0.31)		$(0.41)
Weighted Average
Shares Outstanding		13,402,915		11,788,478

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