Vasomedical Anticipates Migration from NASDAQ Small Cap to Over the Counter Bulletin Board.

WESTBURY, N.Y. -- Vasomedical, Inc. (Nasdaq SC: VASO) announced today that it has received notification from NASDAQ that effective as of the open of business on May 26, 2006, it will no longer be listed on the NASDAQ Small Cap Market.

The company has enlisted the services of a NASD member firm to file a Form 211 with the Over the Counter Bulletin Board (OTCBB) and, pending approval, anticipates trading on the OTCBB under the symbol VASO.OB. The company's securities continue to be traded on the NASD Pink Sheets under the symbol VASO.PK.

The company will file the appropriate financial documents and continue to announce its strategic and financial results via press releases and conference calls.

About Vasomedical, Inc.

Vasomedical, Inc. is primarily engaged in designing, manufacturing, marketing and supporting EECP(R) 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.