| **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 June 30, 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 August 16, 2005 there were 25,332,818 shares ofCommon Stock, $.0001 par value, outstanding. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| EP GLOBAL COMMUNICATIONS, INC.

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

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

| PartI.

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

| Item1.

**** | Financial Statements                                                                          | 2                 |
|--------------|-----------------------------------------------------------------------------------------------|-------------------|
|              |                                                                                               |                   |
|         | Balance Sheet as of June 30, 2005 (Unaudited)                                                 | 3 -   4 |
|              |                                                                                               |                   |
|         | Statements of Operations for the Three and Six MonthsEnded June 30, 2005 and 2004 (Unaudited) | 5                 |
|              |                                                                                               |                   |
|         | Statements of Cash Flows for the Six Months Ended 

June 30, 2005 and 2004 (Unaudited)        | 6 – 7       |
|              |                                                                                               |                   |
|         | Notes to Financial Statements (unaudited)                                                     | 8 – 17      |
| Item 2.      | Management's Discussion and Analysis of FinancialCondition and Results of Operations\         | 18 – 20     |
| Item 3.      | Controls and Procedures                                                                       | 21                |
|         |                                                                                          |              |

| **PartII.**

**OtherInformation** |   |
|-----------------------------------|--------|

| Item1.

**** | LegalProceedings                                           | 21     |
|--------------|------------------------------------------------------------|--------|
| Item2.       | UnregisteredSales of Equity Securities and Use of Proceeds | 21     |
| Item3.       | Defaultsupon Senior Securities                             | 22     |
| Item4.       | Submissionof Matters to a Vote of Security Holders         | 22     |
| Item5.       | OtherInformation                                           | 22     |
| Item6.       | Exhibitsand Reports on Form 8-K                            | 22     |
| Signatures   |                                                       | 23     |
|         |                                                       |   |

Page 1

**PARTI  -  FinancialInformation**

**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 and Form10-KSB/A for the year ended December 31, 2004.

The results of operations for the three and six monthsended June 30, 2005 and 2004 are not necessarily indicative of theresults for 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)**

Seenotes to unaudited consolidated financial statements

Page 4

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

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

Seenotes to unaudited consolidated financial statements  

Page 5

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

**CONSOLIDATED STATEMENTS OF CASH FLOW**

**(Unaudited)**

See notes to unaudited consolidated financialstatements 

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 June 30, 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 June 30, 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") and the Company'sAmended Form 10-KSB/A filed with the Securities and Exchange Commissionon August 9, 2005 (the "2004 10-KSB/A"). The results of operationspresented are not necessarily indicative of the results to be expectedfor 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 Continuing Medical Education Programs (“CME”); has its ownlibrary of over 1,500 disability book titles and publishes clinicalmonographs which are disseminated to physicians, researchers and alliedhealth care professionals as well as families and caregivers all overthe world.  EP is also actively involved in the World Congress& Exposition on Disabilities (WCD) an international event whichtakes place once a year and has been in existence for six years. EP is solely responsible for the educational content of thisevent which consists of over 100 CME and CEU accredited educationalprograms.

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 inter-company 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 June 30, 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 six months ended June 30, 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 carry-forward. 

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 and six months ended June 30, 2005 diluted lossper share, as inclusion of the incremental shares shown in thiscalculation would be anti-dilutive.  Potential common shares usedin computing diluted earnings per share relate to stock options,warrants and convertible preferred stock which, if exercised, wouldhave a dilutive effect on earnings per share.  Preferred stockconvertible into 719,801 shares of common stock was not included in theforegoing computation for the three and six months ended June 30, 2005because they were anti-dilutive.

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 |           (242,140) |
|   |                           |  $       147,103              |
|   |                           |                                                                  |

Depreciation expense for the three months ended June30, 2005 and 2004 was $13,530 and $4,379, respectively; and for the sixmonths ended June 30, 2005 and 2004 was $27,060 and $9,914 , respectively.

**3.**

**Accrued Expenses**

Accrued expenses consists of the following:

**4.**

**Debt**

Long Term Debt

Long-term debt at June 30, 2005 consists of thefollowing:

Page 13

Page 14

- This note is subordinated to Provident Bank’s workingcapital line of credit.  
- A shareholder of the Company collateralized the loan withshares of another public entity owned by the shareholder.The line of credit is secured by the Company’s accounts receivable,inventory and property and equipment.
- This line of credit was extended on April 30, 2005 for 18months.  
- The terms are:

-

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

-

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

Short-term debt

Short-term bank obligations at June 30, 2005, consistsof the following:

|   | Note payable on demand to a private individual ,interest at 6%.                                         |  $         27,500                  |
|--------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|   | Note payable on demand to a private individual,interest at 6%.  (5)                                |            140,000            |
|   | Note payable on demand to a private individual,interest at 6%.                                          |              25,000 |
|   | Non interest bearing unsecured advance from an employee                                                 |              39,901 |
|   | Unsecured line of credit with MBNA in the amount of $30,000, interest at 21.25% at March 31, 2005. |              27,920 |
|   |                                                                                                    |  $       260,321                             |
|   |                                                                                                    |                                                                                 |

           5.  This note is secured by 2,000,000 shares ofthe Company’s common stock held in escrow (see Note 5).

Interest expense for the three months ended June 30,2005 and 2004 was $13,339 and $12,999, respectively; and for the sixmonths ended June 30, 2005 and 2004 was $43,785 and $24,638,respectively.

Page 15

**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.

On April 1, 2005, the Company issued 100,000 shares ofits common stock to two individuals for professional services, thatwere valued, in the aggregate, at $16,200.

On May 9, 2005, the Company issued 50,000 shares ofits common stock an individual for professional services, that werevalued, in the aggregate, at $4,500.

Separately, on May 9, 2005, the Company issued2,000,000 shares of its common stock to be held in escrow as securityfor a borrowing from an individual (see Note 4).  These shares aretreated is issued, but not currently outstanding for purposes ofcomputing basic and diluted loss per share.

**6.**

**Related Party Transactions**

Amounts payable to officers and stockholders at June30, 2005 consists of the following:

|   | Note payable to Chief Executive Officer, due ondemand, interest at 6%                   |  $       120,500                             |
|--------|-----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|   | Amount payable to Chief Operating Officer, due ondemand, interest at 6%                 |              17,429 |
|   | Unsecured non-interest bearing compensation deferralspayable to Chief Executive Officer |              13,334 |
|   | Unsecured non-interest bearing compensation deferralspayable to Chief Operating Officer |              13,452 |
|   |                                                                                    |                                                                                 |
|   |                                                                                    |  $       164,715                             |
|   |                                                                                    |                                                                                 |

Interest expense for the three months ended June 30,2005 and 2004 was $1,960 and $240, respectively; and for the six monthsended June 30, 2005 and 2004 was $2,360 and $295 , respectively.

Page 16

**7.**

**Withdrawl of LLC member**

EP Global, during September 2004, entered into a jointventure with the InforMedx Group, LLC, (“InforMedx”) a subsidiary ofthe Conemaugh Health System of Johnstown, Pennsylvania (“Conemaugh”),to promote on line educational seminars, using a web based mediumpresenting topics that relate to the care of special needs individuals.  

The content of the seminars is medically based in mostinstances.  The intended audiences are professional, and alignedand family caregivers of special needs individuals. As agreed byInforMedx, the Company was responsible for managing and controllingsubstantially all aspects of the operation of the joint venture,including day to day operations and development and presentation of theon line educational seminars.

To implement the joint venture, EP stablished alimited liability company, EP Educational Network LLC, (“Network”) andInforMedx agreed to pay $210,000 for a one half interest in this newlyestablished entity.  Of this amount $100,000 was received inSeptember 2004 with the balance due September 2005.  Thetransaction was recognized in the Company’s financial statements asadditional minority interest. 

In June of 2005, shortly after a change in seniormanagement at Conemaugh, InforMedx informed the Company that it hadreconsidered its continuing participation in the joint venture and madea determination that continued participation would not be consistentwith Conemaugh’s strategic goals.  Accordingly, InforMedx hasagreed to return its one-half ownership of the LLC to the company inexchange for being released from making the $110,000 contribution inSeptember 2005.  Consequently, the Company has transferred$100,000 of minority interest to additional paid in capital.

**8.**

**Subsequent Events**

On July 27, 2005, the Company received notice that anaction has been commenced against the company alleging breach ofcontract and other causes of action seeking specific performance andother unspecified damages.  The Company is continuing itsevaluation of the merits of the claim and believes it has meritoriousdefenses.  The Company presently intends to contest the claimvigorously.  While the claim is at an early stage, the Companydoes not believe that an adverse outcome  would materially affectits financial statements.

Page 17

**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 andunderlying assumptions and other statements that are other thanstatements of historical facts.

Page 18

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 cash flows from operations for the quarter endedJune 30, 2005 were insufficient to meet the operating requirements ofthe Company. To balance the cash requirements needed for operations,the Company secured short term borrowings, from private sources, withvarying terms under one year in the amount of $325,000 at market rates.These amounts coupled with additional borrowings and debtrenegotiations completed in the first quarter of 2005 have allowed theCompany to meet its obligations during the six month period ended June30, 2005.

In addition, on April 30, 2005, the Company extendedits line of credit 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 for an additional ten monthsthereby converting a current liability into a fourteen month term loan.

It should also be noted that liquidity is expected tobe enhanced in future periods as a result of a corporate personnelrealignment completed in April 2005. This is expected to benefitoperations within the following twelve months through cost reductionsin selling, general and administrative expenses of an estimated$225,000.

As noted in its Form 10-KSB l filing with the SEC, theCompany has initiated a private placement offering aimed at raising$2,000,000 in new funding for the Company. The primary use of proceedsis intended to fund the Company’s expansion strategy that includescertain acquisitions in addition to paying down existing debt.Negligible progress was achieved in the second quarter; however, duringJuly and August 2005 (through the date of this filing), the Companyconducted a series of presentations throughout the country withpotential investors. While no funds have been raised thus far,management believes there is has received expressions of interest fromboth individuals as well as institutional investors in participating inthe offering and the Company has scheduled follow up meetings withthese institutions and individuals.

Were the Company, for any reason, to be unable toraise the entire $2,000,000 contemplated, or any portion thereof, itwould reduce proportionately its acquisition plans to reflect theactual level of funding achieved while attempting to also pay down debtin a manner that is also proportionate to the actual level of fundingachieved.

Page 19

Results of Operations

Three Months Ended June 30, 2005 compared to theThree Months Ended June 30, 2004

Sales

Sales for the three months ended June 30, 2005 ascompared to the same period in 2004 decreased by approximately$295,000. The largest component of the decrease, $149,000 wasexperienced in page advertising, with decreases of lesser amounts notedas well in circulation and special project income.  This decreasewas anticipated by management and met by the institution of increasedpromotional programs intended to reverse the decline and bring theCompany back on plan within the third and fourth quarters of 2005.Overall for the six month period ended June 30, 2005 as compared to2004 the Company had a decrease in sales of approximately $105,000.

Operating Expenses Including Cost of Sales

The Company, for both the quarter and the six monthsended June 30, 2005 as compared to the same periods in 2004 hasdecreased expenses by approximately $93,000 for the quarter and$114,000 for the six month period.  Reductions in cost of salesresult  primarily from reductions in costs for printing, designand postage in comparison to 2004 with a decrease for the quarter of$111,000 and $142,000 cumulatively for the six months ended June 30,2005 as compared to 2004.

Cost containment in many areas allowed for theredeployment of administrative dollars to system improvement and keystaffing increases.

Interest

Interest expense has increased in the first and secondquarters of 2005 compared to 2004 due to an increase in debt andincreasing interest rates due prime based lending on certain of theoutstanding debt instruments.

Taxes

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

Page 20

**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.

**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 exceeds the contract balance.

On July 27, 2005, the Company received notice that anaction has been commenced against the company alleging breach ofcontract and other causes of action seeking specific performance andother unspecified damages.  The Company is continuing itsevaluation of the claim and believes it has meritorious defenses. The Company intends to contest the claim vigorously.  Whilethe claim is at an early stage, the Company does not believe that anadverse outcome would materially affect its financial statements.

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

None

Page 21

**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

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

(a)

Exhibits:

Exhibit 31.1 Certification of Chief Executive Officerpursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit  31.2  Certification  of Chief Financial Officer pursuant to Section 302 of theSarbanes-Oxley Act of 2002.

Exhibit  32.1 Certification of Chief ExecutiveOfficer pursuant to 18 U.S.C. Section 1350, as adopted pursuant toSection 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2 Certification of  Chief FinancialOfficer pursuant to 18 U.S.C. Section 1350, as adopted pursuant toSection 906 of the Sarbanes-Oxley Act of 2002.

(b)

Current Reports on Form 8-K: 

- Current report on Form 8-K dated and filed April 20, 2005,reporting on Item 8.01. Other Events And Regulation FD Disclosure.
- Current report on Form 8-K dated April 27, 2005 and filedApril 28, 2005, reporting on Item 8.01. Other Events And Regulation FDDisclosure.
- Current report on Form 8-K dated and filed June 27, 2005,reporting on item 5.02. Departure Of Directors Or Principal Officers;Election Of Directors; Appointment Of Principal Officers.

Page 22

**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:  August 17, 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. 

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