EPMD EP Medsystems (MM)

EP MedSystems, Inc. (NASDAQ: EPMD), today announced that it has completed funding on a $3 million secured loan facility with Keltic Financial Partners, LP, an asset-based lender. The loan arrangement includes a $1.5 million asset-based revolving credit agreement and a $1.5 million term loan, each with a three year term. The loan facility is secured by a first lien on all assets of the Company with interest rates up to Prime plus 2.0%. The Company also issued warrants to Keltic to purchase 25,000 shares of the Company's Common Stock at $2.50 per share. The Company used proceeds from the facility to pay off its $2.0 million convertible debt. At December 31, 2007, the Company had approximately $5.6 million of cash on hand compared to $5.6 million at September 30, 2007 and $7.7 million at the end of 2006. James Caruso, Chief Financial Officer of the Company, said, �This loan facility funds the repayment of convertible debt that has come due and provides for working capital in addition to our cash on hand to help support continued growth of EP MedSystems.� About EP MedSystems: EP MedSystems develops, manufactures and markets a line of products for use in the cardiac rhythm management or electrophysiology (�EP�) market which are used for visualization, diagnosis and treatment of cardiac rhythm disorders. The Company's EP product line includes the EP-WorkMate� computerized electrophysiology workstation, with expansion options to incorporate the MapMate� Navigation Interface, the NurseMate� Remote Review Charting Station, and the EP-4� Computerized Cardiac Stimulator. In addition, our intracardiac echo (ultrasound or ICE) ultrasound catheter system, including our ViewFlex� intracardiac imaging catheters and ViewMate� II ultrasound imaging system, is used for live visualization of devices and anatomy during catheter based procedures in EP and interventional cardiology. For more information, visit our website at www.epmedsystems.com.