Electropharmacology completes equity investment and debt conversion totaling $3 million; Reports 3rd Quarter/9 Month Results.

POMPANO BEACH, Fla.--(BUSINESS WIRE)--Nov. 27, 1995--Electropharmacology Inc. (NASDAQ: EPHI), today announced that Norton Herrick, chairman and chief executive officer of The Herrick Company of Boca Raton, Fla., has purchased 421,950 shares of restricted convertible preferred stock.

The company also granted Herrick 10-year warrants to purchase an additional 1,721,950 common shares. The preferred stock, when converted to common stock on a 1:1 basis, will represent a stake of about 13 percent. If the warrants are exercised, Herrick's stake will increase to 43 percent for an additional investment of approximately $9 million.

David Saloff, chairman, president and chief executive officer, said, "The proceeds will be used to fund the national roll-out of EPI's products. The funds may also be used to acquire related products for product line expansion and distribution by the company." Electropharmacology markets to the healthcare industry including nursing homes, home health care services and hospitals. The company intends to pursue the assisted living and managed care markets in the national roll-out of its product line.

"Mr. Herrick, a well-known figure in corporate America, the real estate industry and the sports industry, brings to Electropharmacology Inc. a network of professionals that I believe will assist the company in reaching its financial goals and objectives," Saloff stated.

In addition, a note holder was granted warrants to purchase 300,000 shares of common stock at $6.25 per share as an inducement to convert $1 million in long-term debt, due Dec. 31, 1996, into 195,945 shares of common stock.

"These transactions essentially eliminate our long-term debt and increase our equity position to roughly $4.5 million, permitting us to continue aggressive marketing and product development activities," Saloff added.

Third quarter revenues increased 37 percent to $394,624 from $288,635 for the same period last year. The company sustained a net loss for the period of $739,513 or 26 cents per share on 2,878,529 average shares outstanding versus a net loss of $488,960 or 34 cents per share on 1,426,915 average shares outstanding for the prior year's third quarter.

Sales for the nine months rose 70 percent to $1,296,403 from $760,733 for the initial nine months of 1994. The net loss for the 1995 nine months was $2,056,006 or 92 cents per share on 2,242,082 average shares outstanding versus a net loss of $1,293,031 or 91 cents per share on 1,423,863 average shares outstanding for the 1994 nine-month period.

"Our rising revenues continue to reflect the increasing number of sofPulse(TM) rental units in the field -- primarily nursing homes -- and the growth in the average monthly rental per unit," Saloff concluded.

Electropharmacology Inc., designs, develops and markets proprietary medical devices incorporating pulsed radio frequency (PRF) therapy which is applied to soft tissue for the treatment of pain and edema. -0-

                         Electropharmacology Inc.
                          Financial Highlights
                              (Unaudited)

                 For the Three Months Ended     For the Nine Months Ended
                 9/30/95            9/30/94     9/30/95           9/30/94

Revenues       $  394,624         $  288,635    $1,296,403     $  760,733

Net (loss)       (739,513)          (488,960)   (2,056,006)    (1,293,031)

Net (loss)
 per share          ($.26)             ($.34)        ($.92)         ($.91)

Weighted
 average shares
 outstanding    2,878,529          1,426,915     2,242,082      1,423,863

CONTACT: Electropharmocology Inc.

David Saloff, 305/975-9818

or

Porter Le Vay & Rose Inc.

Hal Le Vay, 212/564-4700