Vasomedical Announces 48.7% Increase in Revenue for the Second Quarter 2012

Reports Net Profit for the Second Quarter

Vasomedical Announces 48.7% Increase in Revenue for the Second Quarter 2012

Dr. Jun Ma, President and CEOMichael J. Beecher, CFO516-997-4600

Vasomedical, Inc. (“Vasomedical”) (OTCQB: VASO), a diversified medical technology company specializing in the design, manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products, today reported its operating results for the three and six months ended June 30, 2012.

The Company reported an increase in revenue of $2.52 million, or 48.7%, to $7.70 million for the three months ended June 30, 2012, compared to revenue of $5.18 million for the same period in 2011. For the six months ended June 30, 2012, revenue was $13.74 million compared to $10.02 million for the six months ended June 30, 2011, an increase of 37.1%. The increase is the result of improved performance in all areas of our business, namely, sales of our EECPTherapy systems and sales from our China operations, as well as increased commission revenue for Vaso Diagnostics, Inc. We continue to record substantial amounts of deferred revenues, which will be recognized once the underlying equipment or service is accepted or performed. As of June 30, 2012, total deferred revenues were approximately $15.20 million, and the Company had cash and cash equivalents of approximately $11.78 million.

Net income for the three months ended June 30, 2012 was $54,000, compared to a net loss of $0.96 million for the same period in 2011. For the six months ended June 30, 2012 we had a net loss of $1.29 million compared to a net loss of $1.42 million for the same period in 2011. The improvement to profitability and the reduction in the loss reported for the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011, was due to the increase in revenues for both our equipment operations and our sales representation business, offset by higher selling, general and administrative costs associated mainly with additional sales and marketing investments at our Vaso Diagnostics subsidiary, the addition of the China operations, and increased corporate expenses. Income attributable to common stockholders for the three months ended June 30, 2012 was $54,000 or $0.00 per common share, compared to a net loss of $1.11 million or $0.01 per common share for the three months ended June 30, 2011. For the six months ended June 30, 2012 we had a net loss attributable to common stockholders of $1.29 million or $0.01 per common share compared to a net loss applicable to common stockholders of $1.70 million or $0.01 per common share for the six months ended June 30, 2011.

“We are pleased that we are able to report a net income for the quarter ended June 30, 2012 and anticipate that we will continue to improve results in the second half of this year. Our equipment segment is beginning to show significant growth and we expect that this also will continue,” commented Dr. Jun Ma, President and Chief Executive Officer of the Company. “We will continue to pursue additional opportunities to expand our equipment segment and explore methods to grow our sales representation business,” Dr. Ma added.

Vasomedical, Inc. is a diversified medical technology company specializing in the manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products. The Company operates through three wholly-owned subsidiaries. Vasomedical Solutions manages and coordinates the design, manufacture and sales of EECP Therapy systems, its core product, as well as other medical equipment operations; Vasomedical Global operates the Company’s China-based subsidiaries; and Vaso Diagnostics, d/b/a VasoHealthcare, is the operating subsidiary for the sales representation of GE Healthcare diagnostic imaging products. Additional information is available on the Company's website at .

Launch Readiness

Optimize cross-functional collaboration and engage with key stakeholders for the successful launch of a product

Join the Launch Readiness for Medical Affairs & Communications Teams Summit to learn best practices in taking a structured approach to enhance medical affairs activities surrounding a launch and increase knowledge and communication with thought leaders.