Centers for Medicare and Medicaid Services (CMS) Publishes Proposal to Keep Existing Coverage with No Changes for Expansion of National Coverage of EECP Therapy.

WESTBURY, N.Y. -- Vasomedical is Committed to Continue to Work with CMS to Secure Expanded Coverage; Conference Call to Begin Today at 3:00 PM EST 

Vasomedical, Inc. (NASDAQ SC: VASO), a leader in the noninvasive treatment and management of cardiovascular diseases, today announces that the Centers for Medicare and Medicaid Services (CMS) has published a proposal to keep existing coverage with no changes for expansion of external counterpulsation therapy. Current coverage is limited to patients with Canadian Cardiovascular Society Class (CCSC) III/IV refractory angina deemed not amenable to revascularization. Vasomedical had made a formal request for a revision of Medicare reimbursement coverage to expand existing coverage for angina to include less severe angina and to add congestive heart failure as a primary indication.

In its announcement, CMS states, "CMS posts a proposed decision memorandum to keep the existing coverage for external counterpulsation therapy with no changes for expansion for the additional cardiac conditions requested." In their proposed decision memorandum, they further stated, "The Centers for Medicare and Medicaid Services (CMS) is seeking public comment on the proposed determination that the evidence is not adequate to conclude that external counterpulsation therapy is reasonable and necessary for Canadian Cardiovascular Society Classification (CCSC) II angina and NYHA Class II/III stable heart failure with ejection fraction less than or equal to 35%."

Vasomedical is fully committed to work closely with CMS to resolve all issues and secure expanded coverage. With clinical evidence in more than 50 peer-reviewed journal articles, including data from randomized controlled trials documenting the clinically significant and life enhancing benefits of EECP(R) therapy for patients suffering from angina and congestive heart failure, including symptom relief, increase in functional capacity and improved quality of life, we believe the threshold for clinical evidence required by CMS has been met.

"We are disappointed by the proposed CMS decision not to expand reimbursement coverage of EECP therapy. We believe the breadth and quality of clinical evidence supporting the use of EECP therapy in patients with congestive heart failure, including the most recent PEECH trial results, especially in patients aged 65 and older, clearly demonstrates the significant benefits including improvements in the ability to exercise, reduction in symptoms and improved quality of life," said Thomas Glover, president and chief executive officer of Vasomedical. "As the market leader in EECP therapy, we are strongly committed to this treatment. This is an important therapy for the thousands of patients who find inadequate relief from drugs and who are not candidates for further invasive procedures."

More than five million people in the United States suffer from congestive heart failure and with more than 550,000 new cases diagnosed annually, it is a growing epidemic. Heart failure is the number one diagnosis in Medicare patients and the leading cause of hospitalization in patients over the age of 65. This growing disease also places an enormous burden on the U.S. healthcare system, with an estimated economic impact ranging from $20 billion to more than $50 billion per year. Compounding the problem is that there are few consensus therapies to treat congestive heart failure beyond medical management and many patients are left to suffer with symptoms of shortness of breath and fatigue. For patients who are good candidates for the treatment, EECP is a safe, low cost, noninvasive therapy.

CMS will accept public comments on its proposed decision from December 19, 2005 to January 19, 2006 and will then issue a final decision memorandum. The final decision is anticipated for March 20, 2006. Vasomedical strongly urges the public including EECP providers and patients to take advantage of this opportunity to share their experiences with EECP therapy to CMS during this public comment period. Additional information is available at the CMS website: http://www.cms.hhs.gov/mcd/viewtrackingsheet.asp?id=162.

Conference call

Management will hold a conference call today at 3:00 PM EST to discuss this announcement. To participate in the live call by telephone, please dial [phone] from the U.S., or for international callers, please dial [phone]. A telephone replay will be available until 11:59 p.m. Eastern Time on December 22, 2005, by dialing [phone] from the U.S. or [phone] for international callers and entering pass code 3745437. Those interested in listening to the conference call live via the Internet may do so by visiting the Company's web site at www.vasomedical.com, under the investor relations tab. To listen to the live call, please go to the web site 15 minutes prior to its start to register, download, and install the necessary audio software. The webcast will be archived for 30 days.

About EECP(R) Therapy

EECP external counterpulsation therapy is typically given in 35 one-hour sessions over seven weeks. Patients recline on a contoured treatment table and their calves, lower thighs and upper thighs are wrapped in a pneumatic cuff set. The system, which is synchronized to the individual patient's cardiac cycle, inflates the cuffs with air to create external pressure when the heart is resting and deflates the cuffs just before the next heartbeat. The system's action, which pulses counter to the heart's beating, increases blood flow to the heart muscle and other organs and decreases the heart's workload, creating a greater oxygen supply for the heart muscle while lowering its need for oxygen.

About Vasomedical, Inc.

Vasomedical, Inc. is primarily engaged in designing, manufacturing, marketing and supporting EECP external counterpulsation systems based on the Company's unique proprietary technology. EECP therapy is a noninvasive, outpatient therapy for the treatment of diseases of the cardiovascular system currently indicated for use in cases of stable or unstable angina, congestive heart failure, acute myocardial infarction and cardiogenic shock. The therapy serves to increase circulation in areas of the heart with less than adequate blood supply and may restore systemic vascular function. The Company provides hospitals, clinics and private practices with EECP equipment, treatment guidance and a staff training and equipment maintenance program designed to provide optimal patient outcomes. Additional information is available on the Company's website at www.vasomedical.com.

EECP is a registered trademark for Vasomedical's enhanced external counterpulsation systems.

Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as "anticipated," "believes," "could," "estimates," "expects," "may," "plans," "potential" and "intends" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the following: the effect of the dramatic changes taking place in the healthcare environment; the impact of competitive procedures and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; uncertainties about the acceptance of a novel therapeutic modality by the medical community; and the risk factors reported from time to time in the Company's SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.