EP MedSystems, Inc.
Ticker: EPMD 58 Route 46 West
Exchange: NASDAQ-National Market Budd Lake, New Jersey 07828
Industry: Wholesale (201) 691-6400

Type of Shares:Common Shares Filing Date:4/18/96
U.S. Shares:2,500,000 Offer Date:6/21/96
Non-U.S. Shares:0 Filing Range:$6.00 - $8.00
Primary Shares:2,500,000 Offer Price:$5.50
Secondary Shares:0 Gross Spread:$0.38
Offering Amount: $17,500,000 Selling:$0.23
Expenses:$900,000 Reallowance:$0.10
Shares Out After:7,599,917

ManagerTierPhone
Pacific Growth EquitiesLead Manager (415) 398-4563

Auditor: Arthur Andersen
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$2.00$0.76$0.46Assets:$2.49
Net Income:-$1.48-$0.17-$0.17Liabilities:$2.34
EPS:-$0.26-$0.03-$0.03Equity:$0.15

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a leader in the development of a new product for internal cardioversion of atrial fibrillation and also develops, markets, sells and services cardiac electrophysiology products used to diagnose, monitor and treat certain cardiac disorders. The company has developed the Atrial Low Energy Reversion Therapy catheter system, which uses a proprietary electrode catheter to deliver measured, variable, low energy electrical impulses directly to the inside of the heart in order to convert electrical impulses directly to the inside of the heart in order to convert atrial fibrillation to a normal heart rhythm. The company is not aware of any atrial fibrillation to a normal hearth rhythm. The company is not aware of any other product currently begin developed or marketed that permits low energy internal cardioversion of atrial fibrillation with a single catheter. Atrial fibrillation is most commonly found in the elderly. As the elderly segment of the population grows, the atrial fibrillation patient population is also expected to increase.

Use of Proceeds
The proceeds from the offering will be used for clinical trials and related development, expansion of sales and marketing, expansion of manufacturing and assembly, repayment of debt, and for working capital and general corporate purposes, including potential acquisitions of products and technology.

Last updated: 10/28/96

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