EP MedSystems, Inc. NASDAQ Rule Statement

Business Wire, Jan 10, 2003

Business Editors

WEST BERLIN, N.J.--(BUSINESS WIRE)--Jan. 10, 2003

EP MedSystems, Inc. (NASDAQ: EPMD) announced today that it received a Nasdaq Staff Determination on January 9, 2003, indicating that the Company is currently not in compliance with the $10 million stockholders' equity requirement for continued listing set forth in Marketplace Rule 4450(a)(3).

The Company will request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. If the Company is unsuccessful in its appeal, it intends to apply for listing on the Nasdaq SmallCap Market. The Company believes that it will meet the listing requirements for SmallCap Market listing.

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(R) Electrophysiology Workstation, the ALERT(R) internal cardioversion system, the EP-3(TM) Stimulator, diagnostic electrophysiology catheters, internal cardioversion catheters and related disposable supplies. 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 EP MedSystems including, but not limited to financial forecasts for the year 2003. 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 future profitability and future liquidity needs; and risks regarding regulatory approvals and demand for new and existing products, particularly the ALERT(R) System and the ViewMate(TM) System.

EP MedSystems 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 the EP MedSystems' 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 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 report or to reflect the occurrence of anticipated events.