VASOMEDICAL HAD NET LOSS OF $695,000 OR $0.01 PER COMMON SHARE.

Vasomedical, Inc. (Nasdaq SC: VASO), Westbury, N.Y. a leader in the noninvasive treatment and management of cardiovascular diseases, has announced financial results for the three and nine months ended February 28, 2006.

Total revenues were $2.8 million in the third quarter of fiscal 2006, compared with total revenues of $3.0 million in the third quarter of fiscal 2005. Revenues from equipment sales declined approximately 15% to $1,808,000 in the third quarter of fiscal 2006 compared to $2,132,000 in same period last year. Equipment rentals and services were $1,034,000 in the three months ended February 28, 2006, up approximately 24% from $833,000 in the same period last year.

The company recorded a net loss attributable to common shareholders of $695,000 or $0.01 per common share during the three months ended February 28, 2006, compared to a loss of $2,027,000 or $0.03 per common share in the same period in fiscal 2005. Tom Glover, president and chief executive officer of Vasomedical, commented, "The short term market for our EECP(R) therapy systems has continued to be soft. We believe this reflects a combination of factors including the increasing use of invasive therapies as first line treatment and the recent decision by the Centers for Medicare and Medicaid Services to maintain the current reimbursement coverage for refractory angina without expanding it to include congestive heart failure. Despite the fact that EECP therapy has been proven to be an effective, safe, noninvasive therapy for ischemic heart disease, the therapy continues to face challenges obtaining broader adoption in the cardiology community. We are committed to working diligently with leading physicians in the cardiology community to obtain a broader understanding of the therapy's many benefits. In the meantime, we are restructuring our costs to be better aligned with potential near-term sales, and continuing to explore traditional and new opportunities for EECP therapy as well as additional geographic areas." For the first nine months of fiscal 2006, total revenues were $9.1 million, compared with $11.2 million for the first nine months of fiscal 2005. The net loss attributable to common shareholders for the nine months ended February 28, 2006, was $11 million, or $0.18 per share, compared with a net loss of $4.6 million, or $0.08 per share, for the nine months ended February 28, 2005, which included a non-recurring income tax expense for $7.1 million or $0.12 per share. As of February 28, 2006, the company had cash, cash equivalents and certificates of deposit balances of $1.7 million compared with $2.7 million as of May 31, 2005 and working capital as of February 28, 2006 of $3.4 million as compared with $3.9 million as of May 31, 2005.

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

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. EECP is a registered trademark for Vasomedical's enhanced external counterpulsation systems. For more information, call 516/997-4600 or http://www.vasomedical.com