Medicare Increases Rates for Vasomedical EECP(R) Therapy for 2007.

WESTBURY, N.Y. -- Vasomedical, Inc. (OTC BB: VASO), a world leader in the noninvasive treatment of cardiovascular diseases, today announced that Medicare has increased reimbursement payment rates for EECP([R]) therapy for 2007. The new rates are effective January 1 through December 31, 2007.

Changes for calendar year 2007, recently published by the Centers for Medicare and Medicaid Services (CMS) result in a new national average physician fee payment level of $147.42 per session for EECP therapy --- an increase of 6.3% over the 2006 payment rate. This increase results in a total national average physician fee payment rate of $5,159.70 for a typical 35-hour course of therapy.

The national average reimbursement rate for EECP therapy administered in the hospital outpatient setting also increased for 2007 to $107.06 per session, or 2.2% higher than the rate for 2006. This increase results in a total national average hospital outpatient payment rate of $3,747.10 for a typical 35-hour course of therapy.

Medicare payment rates are adjusted according to a provider's location within the United States.

"Vasomedical thanks the patients and EECP providers who provided input to CMS regarding payment rates for external counterpulsation therapy and the American College of Cardiology for their involvement in advising CMS on appropriate coverage and payment for this beneficial procedure," stated Thomas Glover, president and chief executive officer of Vasomedical.

"Recent published studies, including data from our pivotal trial in heart failure, the PEECH trial, demonstrate even more clearly today the benefits of Vasomedical's proprietary EECP therapy for patients with angina and ischemic heart failure. We look forward to maintaining our industry leadership role in the dialogue with CMS concerning reimbursement for external counterpulsation therapy," added Mr. Glover.

About Vasomedical, Inc. and EECP([R]) Therapy

Vasomedical, Inc. develops, manufactures and markets EECP([R]) therapy systems to deliver its proprietary form of enhanced external counterpulsation therapy. EECP([R]) therapy is a noninvasive, outpatient therapy used in the treatment of ischemic cardiovascular diseases, currently used to manage chronic stable angina and heart failure. The therapy increases blood flow and oxygen supply to the heart muscle and other organs and decreases the heart's workload and need for oxygen. Function of the endothelium, the inner lining of blood vessels throughout the body, is also improved, lessening resistance to blood flow. These actions reduce or eliminate symptoms of angina and heart failure, and improve exercise performance and quality of life for thousands of people worldwide. For more information visit www.vasomedical.com.

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 risk factors reported from time to time in the Company's SEC reports, including the ability of the Company to continue as a going concern. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.