| **FORM 10-QSB**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C.** |
|-------------------------------------------------------------------------------|

   

| [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934 |
|-----|----------------------------------------------------------------------------------------|

| **For the quarterly period ended March 31, 2005**

**OR** |
|-----------------------------------------------------------|

|  [ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|-------------------------------------------------------------------------------------------|

   

| For the transition period from ____________ to_________________

**Commission File Number  000-30797**

**EP GLOBAL COMMUNICATIONS, INC.**

(Exact name of registrant as specified in its charter) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **DELAWARE**

**(State or other jurisdiction of**

**incorporation or organization)** | **14-1818396**

**(I.R.S. Employer**

**Identification No.)** |
|---------------------------------------------------------------------------------------|---------------------------------------------------------------|

| **C/O Exceptional Parent, 551 Main Street, Johnstown,PA  15901**

**(Address of principal executive offices)**

**(814) 361-3860**

**(Issuer’s telephone number)**

**(Former name, former address and former fiscal year,if changed since last report)**

Checkwhether the issuer (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the Registrant wasrequired to file such reports), and (2) has been subject to such filingrequirements for the past 90 days.

YES  X         NO

Indicate the number of shares outstanding of each ofthe issuer's classes of common stock, as of the latest practicable date.

At March 31, 2005 there were 23,132,818 shares ofCommon Stock, $.0001 par value, outstanding. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| EP GLOBAL COMMUNICATIONS, INC.

INDEX |
|---------------------------------------|

|   |   | Page   |
|--------|--------|--------|
|   |   |   |

| PartI.

FinancialInformation |   |
|------------------------------|--------|

| Item1.

**** | Financial Statements                                                                      | 2                 |
|--------------|-------------------------------------------------------------------------------------------|-------------------|
|         | Balance Sheet as of March 31, 2005 (Unaudited)                                            | 3 -   4 |
|         | Statements of Operations for the Three Months Ended 

March 31, 2005 and 2004 (Unaudited) | 5                 |
|         | Statements of Cash Flows for the Three Months Ended 

March 31, 2005 and 2004 (Unaudited) | 6 – 7       |
|         | Notes to Financial Statements (unaudited)                                                 | 8 – 16      |
| Item 2.      | Management's Discussion and Analysis of FinancialCondition and Results of Operations      | 17 – 19     |
| Item 3.      | Controls and Procedures                                                                   | 19                |
|         |                                                                                      |              |

| PartII.

OtherInformation |   |
|---------------------------|--------|

| Item1.

**** | LegalProceedings                                           | 20     |
|--------------|------------------------------------------------------------|--------|
| Item2.       | UnregisteredSales of Equity Securities and Use of Proceeds | 20     |
| Item3.       | Defaultsupon Senior Securities                             | 20     |
| Item4.       | Submissionof Matters to a Vote of Security Holders         | 20     |
| Item5.       | OtherInformation                                           | 20     |
| Item6.       | Exhibitsand Reports on Form 8-K                            | 21     |
| Signatures   |                                                       | 22     |
|         |                                                       |   |

Page 1

**PARTI.**

**    Financial Information**

**Item 1.   Financial Statements**

Certain information and footnote disclosures requiredunder accounting principles generally accepted in the United States ofAmerica have been condensed or omitted from the following consolidatedfinancial statements pursuant to the rules and regulations of theSecurities and Exchange Commission.  It is suggested that thefollowing consolidated financial statements be read in conjunction withthe year-end consolidated financial statements and notes theretoincluded in the Company's Annual Report on Form 10-KSB for the yearended December 31, 2004.

The results of operations for the three months endedMarch 31, 2005 and 2004 are not necessarily indicative of the resultsfor the entire fiscal year or for any other period.

Page 2

**EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY**

**CONSOLIDATED BALANCE SHEET**

**(Unaudited)**

See notes to unaudited consolidated financial statements

Page 3

**EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY**

**CONSOLIDATED BALANCE SHEET**

**(Unaudited)**

See notes to unaudited consolidated financial statements 

Page 4

**EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

See notes to unaudited consolidated financialstatements 

Page 5

**EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY**

**CONSOLIDATED STATEMENTS OF CASH FLOW**

**(Unaudited)**

Seenotes to unaudited consolidated financial statements

Page 6

**EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY**

**CONSOLIDATED STATEMENTS OF CASH FLOW**

**(Unaudited)**

See notes to unaudited consolidated financial statements

Page 7

**EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**1.**

**Description Of Business And Summary Of SignificantAccounting Policies**

The consolidated balance sheet as of March 31, 2005,and the consolidated statements of operations and cash flows for theperiods presented herein have been prepared by EP GlobalCommunications, Inc. (the "Company" or "EP") in accordance withaccounting principles generally accepted in the United States ofAmerica for interim financial information and the instructions to Form10-QSB and Article 10 of Regulation S-X and are unaudited. 

These financial statements reflect all adjustments,consisting of normal recurring adjustments and accruals, which are, inthe opinion of management, necessary for a fair presentation of thefinancial position of the Company as of March 31, 2005 and the resultsof operations and cash flows for the interim periods indicated inconformity with generally accepted accounting principles applicable tointerim periods.

Accordingly, certain information and footnotedisclosures normally included in annual financial statements preparedin accordance with generally accepted accounting principles have beencondensed or omitted. These financial statements should be read inconjunction with the audited financial statements and notes thereto ofthe Company for the year ended December 31, 2004 that are included inthe Company's Form 10-KSB filed with the Securities and ExchangeCommission on April 13, 2005 (the "2004 10-KSB"). The results ofoperations presented are not necessarily indicative of the results tobe expected for future quarters or for the year ending December 31,2005.

Organization

EP Global Communications, Inc., formerly East CoastAirlines, Inc., and Subsidiaries (“EP” or the “Company”), operates itsbusiness through its subsidiary, Psy-Ed Corporation (d/b/a ExceptionalParent Magazine).  EP publishes and distributes Exceptional ParentMagazine, an international publication, designed to serve theinformation needs of families and professionals who are involved in thecare and development of children and adults with disabilities andspecial health care needs.  EP also develops and implements onlineaccredited Continued Medical Education Programs; has its own library ofover 1,000 disability book titles and publishes clinical monographswhich are disseminated to physicians, researchers and allied healthcare professionals as well as families and caregivers all over theworld.  

Page 8

Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include theaccounts of the Company and its majority - owned subsidiary and jointventure.  The consolidated statements include 100 percent of theassets and liabilities of these subsidiaries and the ownershipinterests of minority participants are recorded as "Minority interestsin consolidated subsidiares".  All intercompany transactions andbalances have been eliminated.

Use of Estimates

The preparation of the consolidated financialstatements in conformity with accounting principles generally acceptedin the United States of America requires management to make estimatesand assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at thedate of the financial statements and the reported amounts of revenuesand expenses during the reporting period.  Actual results coulddiffer from those estimates.

Concentration of Credit Risk

Financial instruments which potentially subject theCompany to concentrations of credit risk consist principally of cashand trade receivables. 

The Company's cash and cash equivalents areconcentrated primarily in two banks in the United States.  Attimes, such deposits could be in excess of insured limits. Management believes that the financial institutions that hold theCompany's financial instruments are financially sound and, accordingly,minimal credit risk is believed to exist with respect to thesefinancial instruments.

The Company grants credit primarily to advertisersbased on an evaluation of the customer’s financial condition, withoutrequiring collateral.  Exposure to losses on these receivables isprincipally dependent on each customer’s financial condition.  Amajority of the subscription income is received in advance and presentslittle risk to the Company.  The Company controls its exposure tocredit risk through monitoring procedures and establishes appropriateallowances for anticipated losses.  

Page 9

Provision for Losses on Uncollectible Receivables

The provisions for losses on uncollectible tradereceivables are determined principally on the basis of specificidentification and past collection experiences.  Allowances fordoubtful accounts on accounts receivable balances was approximately$41,000 at March 31, 2005.

Inventories

Inventories, consisting primarily of books, are statedat the lower of cost or market, determined on the first-in, first-out(FIFO) method.  

Revenue Recognition

The Company recognizes revenue in accordance with theguidance contained in SEC Staff Accounting Bulletin No.  104,“Revenue Recognition in Financial Statements” (“SAB104”).  

Online services advertising revenues, primarilyderived from the sale of banner advertisements and sponsorships on theCompany's web sites, is recognized in the period the advertising isdisplayed.  The costs to develop this internet income are periodcosts and are expensed when incurred.  Print publicationadvertising and circulation revenues are recognized, net of agencycommissions and estimated returns and allowances, when publications areissued.  List rental income is recognized, net of commission, whena list is sold or rented.  

Deferred subscription income, net of agency commissionis recorded when subscription orders are received.  The Companyuses a fulfillment house, which calculates the revenue to be recordedfor all periods.  Customers generally subscribe to the magazinefor a three year period of time.  Deferred subscription incomerepresents the portion of the prepaid subscription not earned by theCompany and paid for in advance of fulfillment by the Company to thecustomer.  

Depreciation and Amortization

Property and equipment are stated at cost lessaccumulated depreciation and amortization.  Depreciation ofproperty and equipment is calculated on the straight-line method overthe estimated useful lives of the respective assets, ranging from threeto five years.  Leasehold improvements are amortized over thelesser of the useful life of the asset or the term of the lease.  

Page 10

Stock-Option Plan

The Company accounts for equity-based compensationissued to employees in accordance with Accounting Principles Board(“ABP”) Opinion No.  25 “Accounting for Stock Issued toEmployees”.  APB No.  25 requires the use of the intrinsicvalue method, which measures compensation cost as the excess, if any,of the quoted market price of the stock at the measurement date overthe amount an employee must pay to acquire the stock.  The Companymakes disclosures of pro forma net earnings and earnings per share asif the fair-value-based method of accounting had been applied asrequired by SFAS No. 123 “Accounting for Stock-Based Compensation.” 

In December 2004, the FASB issued SFAS No. 123R,Share-Based Payment, which establishes standards for the accounting fortransactions in which an entity exchanges its equity instruments forgoods or services. A key provision of this statement is the requirementof a public entity to measure the cost of employee and non-employeeservices received in exchange for an award of equity instruments(including stock options) based on the grant-date fair value of theaward. That cost will be recognized over the period during which anemployee is required to provide service in exchange for the award(i.e., the requisite service period or vesting period). This standardbecomes effective on January 1, 2006 for small business issuers. TheCompany will adopt SFAS 123R beginning in the Company's first fiscalquarter of 2006.  The Company is currently evaluating its positionand will make its determination to account for the compensation costseither prospectively or retroactively at the time of adoption.

The Company has adopted the disclosure-only provisionsof SFAS No. 123, "Accounting for Stock-Based Compensation"(SFAS No.123).  There were no awards or outstanding options or warrants inthe three months ended March 31, 2005 or 2004; accordingly, hadcompensation cost for the Company's stock option plan been determinedbased on the fair value at the grant date for awards in 2005 and 2004consistent with the provisions of SFAS No. 123, the Company's resultsof operations, as reported, would not have changed.

Income Taxes

The Company accounts for income taxes using an assetand liability approach under which deferred income taxes are recognizedby applying enacted tax rates applicable to future years to thedifferences between the financial statement carrying amounts and thetax bases of reported assets and liabilities.  

Page 11

The principal items giving rise to deferred taxes arecertain expenses which have been deducted for financial reportingpurposes which are not currently deductible for income tax purposes andthe future tax benefit of certain net operating loss carryforward. 

Evaluation of Long-Lived Assets

The Company reviews property and equipment forimpairment whenever events or changes in circumstances indicate thecarrying value may not be recoverable in accordance with guidance inSFAS No. 144 “Accounting for the Impairment or Disposal of Long-LivedAssets.  ” If the carrying value of the long-lived asset exceedsthe present value of the related estimated future cash flows, the assetwould be adjusted to its fair value and an impairment loss would becharged to operations in the period identified.

Earnings (Loss) Per Share  

Basic earnings (loss) per common share are computed bydividing net earnings (loss) by the weighted average number of commonshares outstanding during the year.   Diluted earnings percommon share are computed by dividing net earnings by the weightedaverage number of common shares and potential common shares outstandingduring the year.  The basic weighted average shares were used incalculating the three months ended March 31, 2005 diluted loss pershare, as inclusion of the incremental shares shown in this calculationwould be antidilutive.  Potential common shares used in computingdiluted earnings per share relate to stock options, warrants andconvertible preferred stock which, if exercised, would have a dilutiveeffect on earnings per share.

The following table includes a reconciliation ofshares used in the calculation of basic and diluted earnings (loss) pershare:

|   |   | Three Months Ended
  |
|--------|--------|---------------------------|

|   |   | March 31, |
|--------|--------|-----------|

|   |                                                                            | 2005                                           | 2004                                                                            |
|--------|---------------------------------------------------------------------------------|------------------------------------------------|---------------------------------------------------------------------------------|
|   |                                                                            |                                           |                                                                            |
|   | Weighted average shares outstanding - basic                                     |       23,132,818 |     20,279,710                                              |
|   |                                                                            |                                           |                                                                            |
|   | Dilutive impact of options, warrants and Convertibleprefered stock outstanding* | 719,801                                   |          -     |
|   |                                                                            |                                           |                                                                            |
|   | Weighted average shares outstanding – diluted                             | 23,852,619                                     |     20,279,710                                              |
|   |                                                                            |                                           |                                                                            |

* Preferred stock convertible into 719,801 shares ofcommon stock was not 

    included in the foregoingcomputation for 2004 because they were antidilutive.

Page 12

Fair Value of Financial Instruments

For financial instruments including cash, accountspayable, accrued expenses and notes payable, it was assumed that thecarrying amount approximated fair value because of the short maturitiesof such instruments. 

**2.**

**Property And Equipment**

Property and equipment consists of the following:

|   | Furniture and Fixtures         |  $       389,243              |
|--------|--------------------------------|-----------------------------------------------------------------------|
|   | Less: Accumulated Depreciation |           (228,610) |
|   |                           |  $       160,633              |
|   |                           |                                                                  |

Depreciation expense for the three months ended March31, 2005 and 2004 was $13,530 and $5,535,  respectively.

**3.**

**Accrued Expenses**

Accrued expenses consists of the following:

|   | Commissions        |  $         23,691                             |
|--------|--------------------|-------------------------------------------------------------------------------------------------|
|   | Professional fees  |              51,325            |
|   | Interest           |                7,772 |
|   | Corporate expenses |              17,832            |
|   | Taxes payable      |                1,500 |
|   |               |  $       102,120                                        |
|   |               |                                                                                            |

**4.**

**Debt**

Long Term Debt

Long-term debt at March 31, 2005 consists of thefollowing:

|   | Notes payable to Cardinal Debt Associates, L.P.,interest at 8%, due December 2008. The note is secured by a secondposition on the Company's accounts receivable and other assets. Interest only payments of $1,457 per month during 2005 andprincipal and interest payments of $6,847 per month thereafter. (1) |  $       256,000 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|

Page13

|   |                                                                                                                                                                                                                                                                                                      |                                                                                 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|   | Note payable to Cardinal Debt Associates, L.P.Interest at 7% due December 2008.  The note is secured by 200,000shares of Deer Park Technologies, Inc. common stock.  Interestonly payments of $583 per month during 2005 and principal and interestpayments of $1,980 per month thereafter. (2) |            100,000            |
|   |                                                                                                                                                                                                                                                                                                      |                                                                                 |
|   | Note payable to the City of Johnstown.  Interestat 3%, due November 2011.  Principal and interest payments of$1,321 per month.                                                                                                                                                                  |              95,699 |
|   |                                                                                                                                                                                                                                                                                                      |                                                                                 |
|   | Note payable to First Commonweath Bank.  Interestat 6.25% due September 17, 2005. Interest only payment of $504 permonth.                                                                                                                                                                            |            110,000            |
|   |                                                                                                                                                                                                                                                                                                      |                                                                                 |
|   | Amount payable to vendor under an extension of creditup to $350,000.  Interest at 6%, due December 2008.  Interestonly payments of $1,366 per month during 2005 and principal andinterest payments of $5,282 per month thereafter.                                                              |            350,000            |
|   |                                                                                                                                                                                                                                                                                                      |                                                                                 |
|   |                                                                                                                                                                                                                                                                                                      |            911,699            |
|   | Less: Current Portion                                                                                                                                                                                                                                                                                     |           (150,110)                |
|   |                                                                                                                                                                                                                                                                                                      |  $       761,589                             |
|   |                                                                                                                                                                                                                                                                                                      |                                                                                 |

(1)

This note is subordinated to Provident Bank’s workingcapital line of credit.  

(2)

A shareholder of the Company collateralized the loanwith shares of another public entity owned by the shareholder.  

Page 14

Short-term debt

Short-term bank obligations at March 31, 2005,consists of the following:

|   | Secured line of credit with Provident Bank in theamount of $500,000, interest at 1% over bank’s prime lending rate(6.25% at March 31,2005). (1) (3) |  $       493,656                             |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|   | Note payable on demand to a private individual in theamount of $35,000, interest at 6%.                                                                   |              35,000 |
|   | Unsecured line of credit with MBNA in the amount of $30,000, interest at 21.25% at March 31, 2005.                                                   |              27,892 |
|   |                                                                                                                                                      |  $       556,548                             |
|   |                                                                                                                                                      |                                                                                 |

(3)

The line of credit is secured by the Company’saccounts receivable, inventory and property and equipment.   

This line of credit was extended on April 30, 2005 for18 months.  The terms are:

-

Interest-only payments are to be made for four months;and

-

Subsequently, payments of $5,000 plus interest are tobe made monthly.

Interest expense for the three months ended March 31,2005 and 2004 was $ 13,339 and $ 13,269, respectively.

**5.**

**Common Stock**

On January 2, 2005, the Company issued 1,000,000shares of its common stock to five individuals for professionalservices that were valued, in the aggregate, at $9,000.

**6.**

**Related Party Transactions**

Note payable to officers and stockholders at March 31,2005 consists of the following:

Page 15

|   | Note payable to Officers, due on demand, interest at 6% | $122,929 |
|--------|---------------------------------------------------------|----------|

Interest expense for the three months ended March 31,2005 and 2004 in connection with these notes was approximately $400 and$55, respectively. 

**7.**

**Subsequent Events**

On April 30, 2005, the Company extended its line ofcredit with a lending institution.  The terms are includeinterest-only payments to be made for four months followed by monthlyprincipal payments of $5,000 plus interest.

Had the extension of the line of credit occurred as ofthe balance sheet date, approximately $458,700 of short-term debt wouldhave been classified as long-term debt.

Page 16

**Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations**

In this section, "Management's Discussion and Analysisor Plan of Operation," references to "we," "us," "our," and "ours"refer to EP Global Communications, Inc. and its consolidatedsubsidiaries.

This Quarterly Report on Form 10-QSB containsstatements that may constitute "forward-looking statements" within themeaning, and made pursuant to the Safe Harbor provisions, of thePrivate Securities Litigation Reform Act of 1995. Such statements arebased on management's current expectations and are subject to a numberof risks and uncertainties detailed from time to time in our filingswith the Securities and Exchange Commission. These risks anduncertainties could cause our actual results to differ materially fromthose described in the forward-looking statements. Any forward-lookingstatement represents our expectations or forecasts only as of the dateit was made and should not be relied upon as representing itsexpectations or forecasts as of any subsequent date. Except as requiredby law, we undertake no obligation to correct or update anyforward-looking statement, whether as a result of new information,future events or otherwise, even if our expectations or forecastschange.

The following discussion and analysis should be readin conjunction with the financial statements, related notes and otherinformation included in this Quarterly Report on Form 10-QSB.

Critical Accounting Policies

The Company's discussion and analysis of its financialcondition and results of operations are based upon the Company'sfinancial statements, which have been prepared in accordance withgenerally accepted accounting principles in the United States ofAmerica. The preparation of these financial statements requires theCompany to make estimates and judgments that affect the reported amountof assets, liabilities and expenses, and related disclosure ofcontingent assets and liabilities. The Company bases its estimates onhistorical experience and on other various assumptions that arebelieved to be reasonable under the circumstances, the results of whichform the basis form making judgments about carrying values of assetsand liabilities that are not readily apparent from other sources.Actual results may differ from these estimates under differenceassumptions or conditions.

Cautionary Statement Regarding Forward-LookingStatements

This report contains forward-looking statements.Forward-looking statements include

statements concerning plans, objectives, goals,strategies, future events or performance and underlying assumptions andother statements that are other than statements of historical facts.

Page 17

Words such as, "expects," "anticipates," "estimates,""believes" and similar expressions are intended to identifyforward-looking statements. Such statements are subject to risks anduncertainties that could cause actual results to differ materially fromthose projected. Such risks and uncertainties are set forth below. Ourexpectations, beliefs and projections are expressed in good faith andare believed to have a reasonable basis, including, without limitation,our examination of historical operating trends, data contained in ourrecords and other data available from third parties, but there can beno assurance that our expectations, beliefs or projections will result,be achieved or be accomplished.

Liquidity

The Company experienced an improvement in its workingcapital ratios for the first quarter of 2005 as compared to the yearend 2004. This in part was due to the effect of the conversion ofapproximately $600,000 in short term debt to long term debt at December31, 2004. Liquidity was further improved as a result of the profitrecorded for the three months ended March 31, 2005.

Results of Operations

Three Months Ended March 31, 2005 compared to ThreeMonths Ended March 31, 2004

Sales

For the three months ended March 31, 2005 the Companyrecorded sales of approximately $951,000 compared to approximately$800,000 for the same period in 2004. The net increase in sales of$151,000 is the result of increased revenue from three primary specialprojects (income categories, on line seminars, the Company’s DisabilityAwareness Night program) as well as from the sale of pocket resourceguides. Overall these three categories accounted for $260,000 of salesin the first quarter of 2005 as compared to combined sales of $101,000from these same categories in the same period in 2004.  Pageadvertising revenues also increased by approximately $38,000 but wasoffset by declines in subscription revenues and EP Library sales.

Cost of Goods Sold

Cost of goods sold declined approximately $40,000 ascompared to 2004 primarily due to the cost cutting effected in April of2004 and a reduced the number of complimentary or controlled issuesprinted that were not paid for by approximately 10,000 – 15,000 copiesper month.  The impact has been a reduction in the cost of goodssold, as a percent of sales, from 48.9% to 36.5%.

Page 18

Selling, General and Administrative Expense

Management has been able to maintain parity with 2004as it relates to total expenditures for Selling, and General andAdministrative expense while expending for needed infrastructure suchas staff increases for critical line positions in addition to aconversion to a new information processing system that includes anenterprise wide CRM program for sales management and oversight. Costcontainment in many areas allowed for the redeployment ofadministrative dollars to system  improvement and key staffingincreases. It should also be noted that through a corporate personnelrealignment in April 2005 EP expects to benefit from further annualcost reductions in selling, general and administrative expenses of anestimated $225,000.

Interest 

Interest expense has increased in the first quarter of2005 compared to 2004 because of the larger amount of debt. Interest rates in effect between the two periods are comparable.

Taxes

The Company reflected no provision for income taxes inthe first quarter of 2005 because of the availability of a significantnet operating loss carryforward to offset any taxable income.

**Item 3.  Controls and Procedures**

(a)  Disclosure controls and procedures. As of the end of the Company’s most recently completed fiscalquarter (the registrant’s fourth fiscal quarter in the case of anannual report) covered by this report, the Company carried out anevaluation, with the participation of the Company’s management,including the Company’s Chief Executive Officer and Chief FinancialOfficer, of the effectiveness of the Company’s disclosure controls andprocedures pursuant to Securities Exchange Act Rule 13a-15.  Basedupon that evaluation, the Company’s Chief Executive Officer and ChiefFinancial Officer concluded that the Company’s disclosure controls andprocedures are effective in ensuring that information required to bedisclosed by the Company in the reports that it files or submits underthe Securities Exchange Act is recorded, processed, summarized andreported, within the time periods specified in the SEC’s rules andforms.

(b)  Changes in internal controls overfinancial reporting. There have been no changes in the Company’sinternal controls over financial reporting that occurred during theCompany’s last fiscal quarter to which this report relates that havematerially affected, or are reasonably likely to materially affect, theCompany’s internal control over financial reporting.

Page 19

**Part II – Other Information**

**Item 1.  Legal Proceedings**

The Company is a plaintiff against a former directorand shareholder who has not satisfied the terms of his agreement withthe Company as of April, 1998. The action resulted in the Companysuspending payments to him under that agreement which at the time ofsuspension had a balance of $119,651. It is the opinion of theCompany’s attorneys that the Company will not be liable for thepayments and that the amount of damages being sought as compensation tothe Company far exceeds the contract balance.

**Item 2.  Unregistered Sales of EquitySecurities and Use of Proceeds**

On January 1, 2005, the Company issued 1,000,000shares of its common stock for professional services.

**Item 3.  Defaults Upon Senior Securities**

Not applicable.

**Item 4.  Submission Of Matters To A Vote OfSecurity Holders**

Not applicable.

**Item 5.  Other Information**

Not applicable

Page 20

**Item 6.  Exhibits And Reports On Form 8-K**

(a)

Exhibits:

Exhibit31.1 Certification of Chief Executive Officer pursuant to Section 302of the Sarbanes-Oxley Act of 2002.

Exhibit31.2  Certification   of  Chief Financial Officerpursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of2002.

Exhibit32.2 Certification of  Chief Financial Officer pursuant to 18U.S.C. Section 1350, as adopted pursuant to Section 906 of theSarbanes-Oxley Act of 2002.

(b)

Current Reports on Form 8-K: 

None

Page 21

**SIGNATURES**

In accordance with Section 13 or 15(d) of theSecurities Exchange Act of 1934 The Registrant has caused this report caused this report to be signed on its behalf by theundersigned, thereunto duly authorized. 

|   | EP GLOBAL COMMUNICATIONS, INC.                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|
|   | (Registrant)                                                                                                                      |
| By:    | /s/ Joseph M. Valenzano, Jr.                                                                                                      |
|   |      Joseph M. Valenzano,Jr., 

      President andChief Executive Officer |
|   |                                                                                                                              |
|   | /s/ Robert J. Salluzzo                                                                                                            |
|   |      Robert J. Salluzzo

      Chief Operatingand Financial Officer        |
|   |                                                                                                                              |
|   | Dated:  May 13, 2005                                                                                                         |

In accordance with the requirements of the SecuritiesExchange Act of 1934, this Report has been signed below by thefollowing persons on behalf of the Registrant and in the capacities andon the dates indicated. 

Page 22