Centers for Medicare and Medicaid Services Decides to Maintain Existing Reimbursement Coverage with No Changes for EECP Therapy; Heart Failure Patients With Very Few Options Denied Access to Therapy; Conference Call to Begin Today at 4:30 p.m. ET.

WESTBURY, N.Y. -- 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 final decision to keep existing reimbursement coverage with no changes for expansion of coverage for external counterpulsation therapy. Reimbursement coverage is still provided for Medicare patients with Canadian Cardiovascular Society Classification (CCSC) III or IV refractory angina deemed not amenable to revascularization. CMS determined that the evidence is not adequate to conclude that external counterpulsation therapy is reasonable and necessary for the treatment of patients with CCSC II angina or New York Heart Association (NYHA) class II or III heart failure. Additional details of the decision can be found on the CMS website at http://www.cms.hhs.gov/mcd/viewdecisionmemo.asp?id=162.

"We are clearly disappointed by the CMS decision. We are particularly concerned for the heart failure patients with very few or no options who would benefit from EECP(R) therapy if CMS had chosen to expand coverage at this time. Many patients have no options other than to suffer with their symptoms and live a low quality of life as a result. 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 results from the PEECH trial, especially in patients aged 65 and older, clearly demonstrates the significant benefits obtained by patients, including improvements in the ability to exercise, a reduction in symptoms and an improved quality of life," said Thomas Glover, president and chief executive officer of Vasomedical.

"It is possible that CMS came to this conclusion because they could not put sufficient weight on the evidence from the PEECH trial as the results have yet to be published in a peer-reviewed publication. We expected the PEECH results would have been published at this point, largely based upon historical publication timeframes. Unfortunately, Vasomedical has no control over the timing of the publication. We will continue to work closely with CMS to determine what actions will be required once the trial results are published. However, there is no guarantee that publication of the PEECH manuscript or other recently developed information will provide sufficient evidence for CMS to expand coverage," added Thomas Glover.

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.

Conference call

Management will hold a conference call today at 4:30 p.m. ET 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 March 23, 2006, by dialing [phone] from the U.S. or [phone] for international callers and entering the conference ID code, 6964618. 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," "will" 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.