|UNITED STATES
      SECURITIES AND EXCHANGE COMMISSION
      Washington, D. C. 20549
      
      FORM 10-KSB
      
      (Mark One)
      [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
      
      For the fiscal year ended December 31, 2004
      
      [ ] TRANSITION REPORT UNDER 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.
      (Name of Small Business Issuer in its charter)
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Delaware                                                       | 14-1818396                             
|-------------------------------------------------------------- | ---------------------------------------
|(State or other jurisdiction of incorporation or
organization) | (I.R.S. Employer Identification Number)
|                                                               |                                        
|C/O Exceptional Parent Magazine                                | 15901                                  
|551 Main Street, Johnstown, PA                                 | (Zip code)                             
|(Address of principal executive offices)                       |                                        
|                                                               |                                        

|(814) 361-3860           
|-------------------------
|Issuer's Telephone Number

| | 
| | 

|Securities registered under Section 12(b) of the
Exchange Act:
|--------------------------------------------------------------

|Title of each class registered: | Name of each exchange on which registered:
|------------------------------- | ------------------------------------------
|None                            | None                                      
|                                |                                           

|Securities registered under Section 12(g) of the
Exchange Act:
|--------------------------------------------------------------
|Common Stock, par value $.0001
      (Title of class)         

| | 
| | 





Check
whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X] No [ ]



Check
if no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy
or information statements incorporated by reference in Part III of this
Form 10-KSB or any amendment to this Form 10-KSB. [ ]



Registrant's
revenues for its most recent fiscal year were $2,594,185



The
Issuer's stock is trading on the OTC Electronic Bulletin Board under
the symbol EPGL.OB.

As
of April 12, 2005  the Registrant had 22,132,818 common shares
outstanding.



Documents
incorporated by reference: See Item 13. Exhibits and Reports on Form
8-K in Part III





Forward Looking Statements:



Certain
information contained herein should be considered "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 which is subject to a number of risks and
uncertainties. The preparation of forward-looking statements requires
the use of estimates of future revenues, expenses, activity levels and
economic and market conditions, many of which are outside the control
of EP Global Communications, Inc. ("Company") control. Specific factors
that could cause actual results to differ materially from those set
forth in the forward-looking statements include: economic conditions,
labor costs; competitive pressures on pricing; consumer perceptions of
the Company's products; other operational matters discussed herein and
other risks and uncertainties. Other factors and assumptions not
identified above are also involved in the preparation of
forward-looking statements, and the failure of such other factors and
assumptions to be realized may also cause actual results to differ
materially from those discussed.



EP GLOBAL COMMUNICATIONS, INC.

CONTENTS

|                                                                                               | Page
      Numbers
|---------------------------------------------------------------------------------------------- | ------------------
|PART
I.                                                                                        |                   
|Item
1. Business                                                                               | 1                 
|Item
2. Properties                                                                             | 6                 
|Item
3. Legal Proceedings                                                                      | 7                 
|Item
4. Submission of Matters to a Vote of
Security Holders                                    | 7                 
|PART
II.                                                                                       |                   
|Item
5. Market for Registrant's Common Equity and Related Shareholder Matters                  | 7                 
|Item
6. Management's' Discussion and Analysis of Financial Condition and
Results of Operations | 10                
|Item
7. Financial Statements and Supplementary Data                                            | 15                
|Item
8. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure   | 15                
|Item
8A. Controls and Procedures                                                               | 16                
|PART
III.                                                                                      |                   
|Item
9. Directors and Executive Officers of the Registrant                                     | 17                
|Item
10. Executive Compensation                                                                | 24                
|Item
11. Security Ownership of Certain Beneficial Owners and Management                        | 26                
|Item
12. Certain Relationships and Related Transactions                                        | 26                
|Item
13. Exhibits and Reports on Form 8-K                                                      | 27                
|Item
14. Principal Accountant Fees and Services                                                | 27                
|PART
IV                                                                                        |                   
|Signatures                                                                                     | 28                
|Exhibit
Index                                                                                  | 29                



PART I



ITEM
1. DESCRIPTION OF BUSINESS.



Background



The
Company was incorporated in the State of Delaware in November 1999
under the name East Coast Airlines Inc. ("ECA") which was established
to become a fully certified Federal Aviation Regulation Part 121 air
carrier. The original business plan was to provide scheduled air
service to small and medium sized markets which have experienced either
a total or partial loss of air service as a result of shifts in
emphasis by major airlines and their regional counterparts. The Company
expected to operate as an independent carrier and serve select markets
in the Northeast.



In
June 2000, the Company filed a Form 10-SB Registration Statement to
register its common stock under the Securities Act of 1933, as amended
(the "1933 Act") which became effective in July 2000. As a result, the
Company began filing its quarterly and annual reports with the
Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended (the “1934 Act”). The Company believed that ECA’s
ability to raise capital with which to fund the ECA business plan would
be significantly enhanced by becoming a public reporting company and
listing ECA securities on a stock exchange in order to provide
investors with potential liquidity.



The
tragic events of September 11, 2001 severely affected the airline
industry and impeded ECA’s efforts to finance its business plan. In the
months following September 11th security concerns caused airline
ridership to plummet and as a consequence reduced, in management's
opinion, the potential for a successful launch of the airline. The
ensuing decline in the United States economy also created a significant
impairment to the successful implementation of the Company's original
business plan.



As
a consequence of the events of September 11th, as first disclosed in
ECA’s Form 10-QSB for the quarter ended September 30, 2002, management
commenced its new plan to identify a strategic partner with whom the
Company could develop a business relationship through either a joint
venture, acquisition, merger or share exchange transaction, that could
present ECA shareholders with an opportunity to achieve potential
appreciation of their holdings. In the event the Company were to
consummate such a transaction with an identified strategic partner,
such partner's business and economic fundamentals could enhance ECA’s
financial condition and bring value to ECA shareholders.



In
February 2003, preliminary discussions began with a private entity to
enact a consolidation through either a merger or acquisition
transaction.





1



On
November 28, 2003, pursuant to unanimous adoption by the Boards of
Directors of Psy-Ed Corporation and East Coast Airlines, Inc., the
companies entered into a Share Acquisition Agreement that authorized
ECA to offer 173 shares of its Common Stock for each share of Psy-Ed
Corporation (“Psy-Ed”) Common Stock held of record by all Psy-Ed
Stockholders.



A
summary of the material terms and conditions of the Offering are as
follows:

- Psy-Ed Stockholders were offered 173 East Coast Common
Shares for each Common Share of Psy-Ed owned of record.

- ECA reduced its outstanding Common Shares to 7,265,932 from
19,113,400 Common Shares.

- ECA amended its Certificate of Incorporation, increasing its
authorized Common Shares from 20,000,000 to 60,000,000.

- ECA, the new parent company, changed its corporate name to
“EP Global Communications Inc.”

- The members of the Board of Directors of East Coast resigned
and the nominees of Psy-Ed were appointed to the Board of Directors of
the new parent company, with Mr. Joseph M. Valenzano Jr. becoming the
President and CEO.

- Psy-Ed became a wholly owned subsidiary corporation of EP
Global Communications, Inc., the new parent company.

- Psy-Ed Stockholders owning 75,208 of the Psy-Ed Common
Shares exchanged their Psy-Ed Common Shares for East Coast Common
Shares. East Coast issued an aggregate 13,010,984 East Coast Common
Shares to the Psy-Ed Stockholders. The share exchange resulted in Psy
Ed shareholders owning approximately 65% of the ECA outstanding common
stock. Psy-Ed has become a subsidiary of ECA now EPGL, the “new parent”
company.   On January 24, 2004, Donald Chadwick was appointed
to the Company’s Board of Directors and Robert J. Salluzzo and Charles
G.Youngblood resigned. At that time, Joseph M. Valenzano, Jr. and John
F. Crowley were appointed Directors of the Company. Immediately
thereafter, by unanimous written consent of the Board of Directors, the
Company’s By-Laws were amended to increase the Board of Directors to
seven (7) members and David Hirsch, Gregg LaPointe,  ADM Raymond
C. Smith, USN (Ret) and Ed McCabe, Esq. were appointed to fill the new
seats on the Board.





2



The
Company



Having
completed this acquisition, the Company became a global communications
company dedicated to providing quality, reliable information for people
with disabilities and special health care needs. The Company’s mission,
as it was for the 34 years prior to the combination, has remained
unchanged: to provide practical advice and emotional support to
families, physicians, allied health care providers, teachers and
caregivers who are involved in the care and development of people with
special needs.

The
Company’s 34 year old award winning publication provides the foundation
of what the Company does. In 2003, the Company continued its tradition
of excellence, receiving the New Freedom Initiative Award from the Jim
Mullen Foundation in Chicago, symbolic of the Best Publication and Web
Site in the Nation for People with Special Needs. Exceptional Parent
Magazine was also the recipient of Three Gold Medals for Editorial
Excellence from FOLIO: at the Magazine Publishers Association Awards
Dinner in New York over the past four years and three Gold Medals for
Excellence in Journalism from the Consumer Health Publishing
Association of America for the Company’s work in Epilepsy, Newborn
Screening and Mitochondrial and Metabolic Disorders. In November, 2003
Exceptional Parent Magazine received the Distinguished Service Award
from the Epilepsy Foundation of New Jersey for the Company’s work on
behalf of people with epilepsy. Joe Valenzano, the Company’s President
and CEO is the recipient of numerous awards for his efforts on behalf
of people with disabilities and special needs including the
Distinguished Service Award from the Fragile X Foundation given to him
by General James L. Jones, former Commandant of the Marine Corps and
now Supreme Allied Commander NATO Forces. Working with the leaders in
the field, the Company has established strong strategic relationships
with virtually every major professional medical society and lay
organization serving people with special needs. 
 
In 2003, the Company focused our editorial content on the key issues
affecting its audience and worked to provide them with need-to-have
information on topics such as the spectrum of autistic disorders, IDEA
reauthorization, the No Child Left Behind Act, epilepsy and complex
seizure disorders, ADHD, and the latest developments in mobility and
communication devices. Feature stories included interviews with former
Assistant Secretary of Education for the Office of Special Education
and Rehabilitative Services Dr. Robert Pasternack, Major League
Baseball pitcher Tim Wakefield and technology leader and inventor Ray
Kurzweil.



The
Company also expanded its coverage of key areas in the disability arena
with added columns including Tech- Scapes and IDEA Notebook as well as
continuing series on autism, financial planning and adaptive physical
sports and recreation for people with disabilities. In addition, the
Company has continued its efforts to expand awareness of the benefits
of newborn screening using tandem mass spectrometry and the Company’s
President and CEO, Joe Valenzano has personally led this charge to have
expanded newborn screening embraced by the U.S. Military.  His
efforts were rewarded as the Navy and Marine Corps have in fact added
expanded newborn screening for Navy and Marine Corps births in 2005.



3

Beyond
the Company’s monthly magazine, in 2004, the Company continued to
intensify its efforts in other areas. The October 2004 World Congress
and Exposition on Disabilities (WCD) in Orlando, FL was, in the opinion
of management, a success and is now in its sixth consecutive year. As
creators and developers of the entire program of educational seminars
offered at the WCD numbering between 110 and 140, the Company played a
vital role in producing the largest exhibit and conference in the world
focusing on special needs. The 2004 Show in Orlando, Florida offered
over 100 CME/CEU-accredited programs for physicians, allied health care
professionals, special education and mainstream teachers, families and
caregivers, and included keynote speeches from the leaders in the field
including Dr. Tim Shriver, President and CEO of Special Olympics
International, highly decorated Vietnam Veteran and Four Star General
James “Tom” Hill, U.S. Southern Command and the father of a disabled
young daughter, Meghan and Jim Kelley, Hall of Fame Quarterback of the
Buffalo Bills and the co-founder of Hunter’s Hope Foundation named
after his son who has Krabbe’s Disease, a devastating life threatening
disorder without a known cure.

In
2004 the Company also expanded the development of its relationship with
Major League Baseball (MLB) Teams.  The collaboration between EP
and MLB Teams began in 2002, when management for the New York Yankees
and the Boston Red Sox embraced EP’s vision to promote awareness of the
disabilities population by reaching out to sports fans. Each team
hosted a pre-game ceremony, during which people who had made
significant contributions to the disabilities community were honored.
The program expanded to 14 MLB teams in 2003. Honorees included
individuals such as Eunice Kennedy Shriver, Travis Roy, Dr. Darryl De
Vivo, Geri Jewell and others. In 2004, twenty-seven teams participated
in this unique awareness driven event, funded in large part by
Massachusetts Mutual Life Insurance Company.
Through the Company’s production of unique online CME/CEU-accredited
seminars focused exclusively in thearena of chronic life-long
disabilities and genetic disorders, EP has established a valuable way
to expand knowledge in this field, filling a major void that exists
because of the lack of such training in the nation’s medical schools.
Over the past two years, the Company has delivered a total of twelve
online seminars dealing with a range of topics such as childhood
movement disorders, the management and control of refractory seizures
in people with mental retardation and developmental disabilities;
managing pediatric gait deficiencies utilizing dynamic bracing,
attention deficit/hyperactivity disorders, lysosomal storage disordersand newborn screening. In 2005, with Conemaugh Health Systems,
and through the Company’s association with several leading professional
medical societies including the Child Neurology Society and American
Academy of Developmental Medicine and Dentistry as well as key lay
organizations such as the Epilepsy Foundation and Family Resource
Network as well as United Cerebral Palsy, the Company plans on
delivering a total of 20 CME/CEU online seminars, hopefully with the
participation of the US Military.  All of these seminars offer
Continuing Medical Education Credit for Physicians and Continuing
Education Units for nurses, allied health care professionals and
educators through academic affiliations we have developed at
institutions such as the University of Pittsburgh School of Medicine
and, of course the American Academy of Developmental Medicine and
Dentistry (AADMD).  In January 2005 the AADMD



4



formally
recognized Exceptional Parent Magazine as the official publication
of the AADMD and the Company is embarking on an implementation plan
to offer CME accreditation through the publication itself, something
which should increase the need for the Company’s publication by
physicians as well as allied health care professionals, hospitals and
clinics.

Exceptional
Parent Magazine was recently designated as the publisher of The
Presidents Report on People with Intellectual Disabilities
(PCPID-formerly known as the President’s Committee on People with
Mental Retardation), complete with the seal of the office of the
President of the United States of America, which appears on the cover
of our 2005 January Resource Guide.

Over
the years, EPGL has become the leading authority in the disabilities
and special health care needs arena and has in place the following
attributes:

- An authoritative, proprietary monthly publication read by
physicians, educators, nurses, therapists and families alike and
endorsed by leading professional medical societies and lay
organizations;

- A Custom Communications Business with the capability of
producing high quality clinical publications on a wide range of
disorders. Examples of these include: A Primary Care Physicians
Guide to Mitochondrial and Metabolic Disorders, A Parent’s
Guide to Mitochondrial and Metabolic Disorders, End Stage Renal
Disease: A Primer for Nurses, Dieticians, Physicians and Patients, What
Families Need to Know About Childhood Seizures, Epilepsy: New
Patterns of Care for the Twenty-First Century, Childhood
Movement Disorders, Positive Perspectives for Cerebral Palsy, Oral
Health Care for People with Disabilities, Universal Newborn
Screening (which has won world-wide acclaim) New Hope for
People with Epilepsy: The Vagus Nerve Stimulator and many others;

- A web site (http://www.eparent.com) with over 1.5 million
hits per month.

- The Company participates in a joint venture in an exhibit
and conference business called the World Congress & Exposition on
Disabilities.  This is the defining event in the disabilities and
special health care needs arena; the 2004 WCD took place in Orlando
Florida October 7th, 8th and 9th at the Orlando Convention Center and
had over 6,000 registrants and 200 + exhibitors.  The 2005 WCD
will take place at the Philadelphia Convention Center in Philadelphia
Pennsylvania December 1, 2 and 3.  One of its themes will be to
honor returning veterans from the Iraq and Afghanistan Conflicts who
have sustained disabilities as a result of their service.

- A reference library - EP Library - available for sale to the
public with one of the largest arrays of disability and special needs
books in the industry (over 1,500 titles).







5





- Strategic Alliances with virtually every major professional
society and consumer/family support groups/organizations and
associations in the field including, The American Academy of Pediatrics
(AAP); the Child Neurology Society (CNS); the American Academy of
Developmental Medicine and Dentistry; Special Care Dentistry; the
International Medical Dystonia Research Foundation; Spina Bifida
Association of America, Special Olympics International; United Cerebral
Palsy Foundation for Education and Research, Governmental bodies such
as The National Institutes of Health; the Centers for Disease Control
& Prevention;  U.S. Department of Education and the Office of
Special Education and Rehabilitation; Department of Defense and the
U.S. Military Exceptional Family Member Program; the Military Child
Education Coalition; the International Dyslexia Association; The
National Multiple Sclerosis Society; Family Voices; Fragile X
Foundation, Cure Autism Now, Autism Society of America, National
Alliance for Autism Research, Epilepsy Foundation, Children with
Attention Deficit Hyperactivity Disorder and a host of other
organizations and associations whose reach into the special health care
needs market is enormous.  EP enjoys not only support from these
prestigious societies and organizations but their endorsement as well.



Management
considers the Company’s contracts to be a strategic advantage.  Of
major significance is the fact that the Company is the owner of all its
content and copyrights.



The
Mission of Exceptional Parent is to continue to grow as an integrated
communications company leveraging its core strengths and serving the
information needs of specific Professional and Consumer target-niche
market segments in the disabilities and special needs market sectors.
 Tactically the Company seeks to accomplish this utilizing a
multi-media approach to communications that includes print, on-line
interactive services and the internet, customized reports, exhibits and
conferences and books.



Employees



As
of December 31, 2004, we had 17 employees, of which 1 was full-time.
 None of the employees are represented by any labor unions.





ITEM
2. DESCRIPTION OF PROPERTY



The
Company rents its office space at the following locations:

- Approximately 5,500 square feet under a lease with a
remaining term of 20 months at 551 Main Street, Johnstown,
Pennsylvania. The monthly payment is $7,400 including utilities and
taxes.

6



- Approximately 5,500 square feet under a lease with a
remaining term of 15 months at 65 East Route 4, River Edge, New Jersey.
 The monthly payment is $9,400 plus utilities and escalation
clauses for tax increases.





ITEM
3. LEGAL PROCEEDINGS.



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





ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.



There
were no matters submitted to security holders in the fourth quarter of
the Company’s fiscal year.





PART II



ITEM
5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.



Market
Information:



Our
common stock has been quoted on the OTC Bulletin Board under the symbol
“EPGL” since December 15, 2004.  The following table sets forth
the range of high and low bid quotations for the last 16 days of
calendar year 2004 and for the first quarter of calendar year 2005.
These quotations as reported by the OTC Bulletin Board reflect
inter-dealer prices without retail mark-up, mark-down, or commissions
and may not necessarily represent actual transactions.



| |                                                                                                    | High  | Low  
| | -------------------------------------------------------------------------------------------------- | ----- | -----
| | Eleven
trading days in calendar 2004 subsequent to the Company's listing on
the OTC Bulletin Board | $0.75 | $0.68
| | First
Quarter, calendar year 2005                                                                  | $0.65 | $0.20
| |                                                                                                    |       |      

The
Company's common stock is subject to the provisions of Section 15(g)
and Rule 15g-9 of the Securities Exchange Act of 1934, as amended (the
'Exchange Act"), commonly referred to as





7



the
"penny stock" rule. Section 15(g) sets forth certain requirements for
transactions in penny stocks and Rule 15g9(d)(1) incorporates the
definition of penny stock as that used in Rule 3a5l-l of the Exchange
Act. The Commission generally defines a "penny stock" as any equity
security that has a market price less than $5.00 per share, subject to
certain exceptions. Rule 3a5l-l provides that any equity security is
considered to be a penny stock unless that security is:

registered
and traded on a national securities exchange meeting specified criteria
set by the Commission; authorized for quotation on The NASDAQ Stock
Market; issued by a registered investment company; excluded from the
definition on the basis of price (at least $5.00 per share) or the
issuer's net tangible assets; or exempted from the definition by the
Commission. If the Company's common shares are deemed to be a penny
stock, trading in our shares will be subject to additional sales
practice requirements imposed upon broker-dealers who offer to sell
penny stocks to persons other than established customers and
"accredited investors" (generally, persons with a net worth in excess
of $1,000,000 or annual income exceeding $200,000, or $300,000 together
with their spouse). In brokerage transactions covered by these rules,
broker-dealers must make a special suitability determination for the
purchase of such securities and must have received the purchaser's
written consent to the transaction prior to the purchase. Additionally,
for any transaction involving a penny stock, unless exempt, the rules
require the delivery, prior to the first transaction, of a risk
disclosure document relating to the penny stock market. A broker-dealer
also must disclose the commissions payable to both the broker-dealer
and the registered representative, and current quotations for the
securities. As a result of the application of these rules, broker
dealers will encounter difficulty in trading and/or maintaining a
market in the Company's common stock. Consequently, such rules may
affect the ability of shareholders to sell their shares.



Holders:



The
Company has 158 shareholders, including management, who hold shares of
the common stock of the Company.  However, we believe the number
of beneficial owners is significantly greater.



Dividends:



The
Company has not declared or paid any cash dividends on its common
stock. Moreover, current management has no intention to declare any
such dividends in the foreseeable future, but will retain earnings, if
any, to finance its operations and any expansion of its business.



Recent
Sales of Unregistered Securities:



Fiscal
Year 2002 - The Company did not issue any unregistered securities
during fiscal year 2002.



Fiscal
Year 2003 - The Company issued the following unregistered securities:





8





- On March 4, 2003, the Board of Directors authorized a
forward stock split of all of the issued and outstanding Company common
shares on the basis of 25.2 common shares for 1 common share
outstanding, issueable to holders of record as of March 5, 2003.
Accordingly, the 754,500 outstanding common shares held of record on
March 5, 2003 were forward split and resulted in 19,013,400 common
shares outstanding as of that date. The 25.2 forward stock split was in
the form of a stock dividend.

- On August 13, 2003, the Company received gross subscription
proceeds in the amount of $5,000 from an accredited investor and issued
to it 100,000 restricted common shares pursuant to a private placement,
utilizing the exemption from the registration requirements of the 1933
Act provided in Rule 506 of Regulation D.

- On November 28, 2003, pursuant to unanimous adoption by the
Boards of Directors of  Psy-Ed Corporation and East Coast
Airlines, Inc., the companies entered into a Share Acquisition
Agreement that authorizes  East Coast Airlines, Inc. (the
“Company” or “East Coast”) to offer  (the “Offering”) 173 shares
of its Common Stock (the “Common Stock”) for each share of Psy-Ed
Corporation (“Psy-Ed”) Common Stock held of record by all Psy-Ed
Stockholders. This Offering resulted in the issuance of
 13,010,984  shares of the Company’s common stock to 50
Psy-Ed shareholders.



Fiscal
Year 2004 - The Company issued the following unregistered securities:





- In August 2004, the Company issued 800,000 shares of its
common stock for financial services.

- In August 2004, the Company issued 200,000 shares of its
common stock for legal services.

- In October 2004, the Company issued 6,000 shares of its
common stock to its Directors for directors’ fees.

- In December 2004, the Company issued 500,000 shares of its
common stock to its Chief Executive Officer and 300,000 shares of its
common stock to its Chief Operating Officer for management services.



Securities
authorized for issuance under equity compensation plans:



None.








ITEM
6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION



Critical
Accounting Policies:



The
Company's discussion and analysis of its financial condition and
results of operations are based upon the Company's financial
statements, which have been prepared in accordance with generally
accepted accounting principles in the United States of America. The
preparation of these financial statements requires the Company to make
estimates and judgments that affect the reported amount of assets,
liabilities and expenses, and related disclosure of contingent assets
and liabilities. The Company bases its estimates on historical
experience and on other various assumptions that are believed to be
reasonable under the circumstances, the results of which form the basis
form making judgments about carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may
differ from these estimates under difference assumptions or conditions.



Plan
of Operation:



It
is management’s intent to continue and expand the Company’s 34 year
heritage of providing “Information that matters from those who care” to
the special needs market.  The Company in 2004 began implementing
a growth strategy that consists of a three-point initiative as outlined
below to increase revenues and profitability for 2005 and beyond.



- Expansion of the revenue base relating to core services,
those being increased ad revenue from it flagship publication,
Exceptional Parent Magazine, increase in the sales of custom
communications, increase in revenue from its special project segment
including “Disabilities Awareness Night” in various sports mediums, the
“World Congress and Exhibition on Disabilities” and greater integration
of web based initiatives with the sales of core services.

In this regard and as an example
of the emphasis placed on aggressively implementing its plan, the
Company in the fourth quarter of 2004 began staffing up for these
initiatives through the hiring of five new employees dedicated to
increased sales efforts as well as the management of its special
projects expansion.

In 2005 the Company has expanded its Disabilities Awareness Night
programs, principally conducted in major league baseball parks in 2004
and prior, to National Basketball Association venues as well as minor
league ball parks as well as minor league hockey. On May 23, 2005 the
Company in conjunction with the National Baseball Hall of Fame in
Cooperstown NY will host prior to the annual “Hall of Fame” game a
ceremony honoring returning disabled veterans from Iraq and
Afghanistan, this in conjunction with Walter Reed Army Medical Hospital
and its Commanding Generalr who will be presenting awards to returning
veterans and their families selected for the honor.


10



On December 1stthrough
3rd, 2005 the annual World Congress and Exhibition on Disabilities is
to be held in Philadelphia, PA. Previously, in October 2004, it had
been
held in Orlando, Florida with approximately 6,000 attendees. In 2005
attendance is forecast to be in the range of 10,000- 12,000 attendees.
The Company expects to conduct over 100 individual education sessions
during the event with world renowned guest lecturers providing
education on topics including autism, ADHD, cerebral palsy, mental
retardation and many others.

These internal growth efforts in 2005 are intended to increase overall
revenues from core services by approximately 50% over 2004 revenues.

It should also be noted that further internal growth is expected to
result from Exceptional Parent Magazine being designated as the
official publication of the American Academy of Developmental Medicine
and Dentistry, an growing national organization of over 1,000 doctors
and dentists who have dedicated their efforts to providing “best
practices” advice to caregivers on how to medically and dentally care
for the special needs individual. Beginning with the June 2005 issue of
Exceptional Parent Magazine, AADMD will be providing articles for the
magazine and the opportunity for physicians to secure up to 2 credit
hours of
CME by completing a test that is to follow each article. Management
believes that Exceptional Parent Magazine is the first consumer
publication ever to offer CME credits to physicians. The Company’s
relationship with the AADMD is in addition to relationships it enjoys
with every major disabilities group throughout the United States as
well as with medical societies such as the Child Neurology
Society and several others of this caliber.

It should also be noted that the Company’s CEO, Joseph M. Valenzano Jr.
is the only non-physician to hold a board seat on the AADMD.

In March 2005, the Company submitted an appropriations request to
Congress that, if approved, would be funded in 2006, for $1,000,000
with which to increase its education and information programs to
military families with special needs dependents and caregivers. If
successful in having these funds committed, the Company intends to
build upon its existing relationships within the military community to
bring timely and meaningful educational content in both print and on a
web based delivery system to this segment. This initiative would result
in increased revenue from subscription, on-line and custom
communication sales.


- Identifying profitable synergistic acquisitions.  The
Company in early 2005 began discussions with two entities one a
publication with a special needs focus and the other being engaged in
conference and trade show activities. While there is no guarantee that
the Company will be successful in concluding on either acquisition it
should be noted that if these acquisitions are successfully concluded
the Company may report additional revenue on

11


a consolidated basis in the range
of $1,200,000 to $1,700,000 from the acquisitions.  It is the
intent of the Company to utilize its common stock as the payment medium
for any acquisition contemplated thereby reducing the need to reduce
working capital for this purpose.


- Development of key strategic financial alliances. In 2004,
the Company entered into a joint venture agreement with the Informedx
Corp. a for profit subsidiary of the Conemaugh Health Systems of
Johnstown, PA. This joint venture was established in concert with the
Company’s move of its corporate headquarters to Johnstown, PA, a move
in part funded by Informedx through the provision of approximately
5,000 square feet of office and storage space at no cost for a two year
period. The purpose of the joint venture is to expand the Company’s
already successful on line seminar series through financial support as
well as dministrative support from both Informedx and Conemaugh.

Informedx purchased a 50% interest
in the joint venture for $210,000 in the third quarter of 2004 as
reported in the Form 10QSB for that period and as reflected in the
statement of operations included herein for the results of operations
for 2004.

In similar fashion, the Company in 2005 has arrived at an agreement in
principal with Johnstown, PA based experienced provider of courseware
to the military to team on the delivery of services to the military
special needs community and its professional caregivers in 2006 and
possibly in 2005 should financial sponsorship be secured in 2005 for
that purpose.




The
Company has incurred, and will continue to incur, expenses relating to
its operations. Specifically, as long as the Company is required to
file reports under the Exchange Act, it will continue to incur
accounting and legal fees relating to the filing of current, quarterly
and annual reports with the Securities and Exchange Commission.



Liquidity:



Earnings
were insufficient to meet the liquidity needs of operations in 2004.
The net loss from operations and use of working capital in 2004 was
offset in part through the conversion of a $250,000 trade payable and
$250,000 of other short term debt into three year notes effective
December 31, 2004.  Each of these notes will require interest
payments only in 2005 at 6% with amortization based on a five year term
commencing January 1, 2006 until the end of the three year term at
which time any remaining the remaining balance will be due.



In
addition, in the fourth quarter of 2004, the Company received
approximately $200,000 of prepayments for 2005 advertising and other
services.  These funds improved liquidity but increased deferred
revenues.







12



To
support operations, the Company also received a short-term loan of
$90,000 from its CEO in March 2005.



In
2004, the Company generated $210,000 of income through the sale of a
50% interest in a venture that is producing on line educational
seminars.  The Company retains a 50% interest in the entity as
well as operational control.



The
Company continues to improve in 2005 its working capital position. In
March 2005 the Company initiated a private placement memorandum to
raise up to $2,000,000 through the issuance of a 6% convertible
debenture (conversion at $0.50 per share into the common stock of the
Company).



The
Company is also seeking to generate additional capital with one or more
financial partners for various web based educational endeavors.



The
Company’s working capital line of credit of approximately $496,000
expired on February 15, 2005.  The lender has agreed in principal
to extend the line for an additional eighteen months based upon the
following:

- Prior to April 30, 2005 of a reduction in the outstanding
amount of $50,000, and

- Additional reductions within twelve months of an additional
$150,000.



The
Company is to make payments of interest only for 120 days commencing
May 1, 2005 and then pay monthly amounts of $5,000 plus interest until
the end of the term of the loan at which time any remaining balance
will become due.  The lender will retain its security position
that consists of a lien against substantially all of the assets of the
Company.



Through
April 30, 2005, the modification to the terms of the line of credit and
the debt conversions described above allow the Company to decrease
current liabilities by approximately $1,000,000.



The
Company was the recipient in 2004 of an “Opportunity Grant” from the
state of Pennsylvania in the amount of $50,000.  The grant is for
reimbursable costs associated with the administration of the World
Congress and Exhibition on Disabilities.  It is expected that EPGL
will collect this amount in 2005.



Results
of Operations:



Fiscal
year ended December 31, 2004 compared to 2003.







13



Sales



In
2004 the Company in 2004 reported a decrease in sales in relation to
2003 of approximately $670,000:

- $104,000 of the decrease was the result of the untimely
death in the spring of 2004 of a key independent salesperson whose
market area was predominantly the western United States.  The
Company was not able to replace this individual quickly enough to
prevent the decline in revenues.

- $122,000 of the decline in revenues was from a decrease in
subscription income.

- $176,000 of the decline was due to decreased space
advertising sales.

- A decrease of $268,000 in special projects income.



In
June 2004, the Company engaged a representative firm experienced in
magazine advertising sales to provide national sales representation for
all product lines.  However, in August 2004 it was necessary to
terminate the relationship due to lack of performance.



In
the fourth quarter of 2004, the Company began a hiring process to
establish its own sales department with the intent of being able to
have improved control and management of this critical function. As a
result of this effort, the Company currently has eight employees in
addition to its CEO who comprise the majority of the sales force.



As
a result of these changes, Early indications are that Sales for the
first quarter of 2005 will approximate $900,000 contrasted to $800,000
for the first quarter of 2004.



Cost
of Goods Sold and Margins



Margins
in 2004 approximated 52% as compared to 59% for the year ended December
31, 2003, reflecting the result of a 21% decrease in sales together
with cost of goods sold comprising 53% in fixed costs.



Selling,
General and Administrative Expenses



The
Company experienced an increase of approximately $390,000 in Selling,
General and Administrative expenses in 2004 as compared with 2003. The
primary categories of increase were as follows:







14





| | Sales-
Salary and Commission | $
  123,000
| | ---------------------------- | -----------
| | Administrative
Salaries      | 100,000    
| | Legal                        | 40,000     
| | Administrative
Travel        | 57,000     
| | HR
Fees                      | 28,000     
| | Various                      | 42,000     
| |                              |            
| | Total                        | $
  390,000
| |                              |            

Sales
salaries and commissions increased due primarily to the addition of a
national sales manager in February 2004.



Administrative
salaries relate to the addition of a Chief Operating Officer/CFO in
2004.



Increases
in legal fees are predominantly due to increased work relating to SEC
compliance requirements and other corporate matters.



The
increase in administrative travel related in part to the travel costs
associated with pre-move travel in association with the relocation of
the corporate headquarters to Johnstown PA as well as travel associated
with the maintenance of relationships with disabilities organizations
throughout the Northeast and across the United States as well as
speaking engagements undertaken in these locations.



HR
fees relate to Administaff, a provider of HR services that was
contracted with in February 2004 to provide HR guidance as well as
health insurance and other benefits to the organization.





ITEM
7. FINANCIAL STATEMENTS



The
Company's Financial Statements and Notes to Financial Statements are
attached hereto beginning with page F1.





ITEM
8. CHANGE IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE



Our
accountant is Wiener, Goodman & Company P.C.  We do not
presently intend to change accountants.  At no time has there been
any disagreements with such accountants regarding any matter of
accounting principles or practices, financial statement disclosure, or
auditing scope or procedure.





15





ITEM
 8A. CONTROLS AND PROCEDURES



Evaluation
of disclosure controls and procedures



Our
chief executive officer and chief financial officer have each evaluated
our disclosure controls and procedures (as defined in rule 13a-14(c)
and 15d-14(c) under the Securities Exchange Act of 1934, as amended) as
of a date within 90 days before the filing of this annual report (the
Evaluation Date).  Based on that evaluation, our principal
executive officer and principal financial officer concluded that, as of
the Evaluation Date, the disclosure controls and procedures in place
were adequate to ensure that information required to be disclosed by
us, including our consolidated subsidiaries, in reports that we file or
submit under the Exchange Act, is recorded, processed, summarized and
reported on a timely basis in accordance with applicable rules and
regulations.  Although our principal executive officer and
principal financial officer believes our existing disclosure controls
and procedures are adequate to enable us to comply with our disclosure
obligations, we intend to formalize and document the procedures already
in place and establish a disclosure committee.



Changes
in internal controls



We
have not made any significant changes to our internal controls
subsequent to the Evaluation Date.  We have not identified any
significant deficiencies or material weaknesses or other factors that
could significantly affect these controls, and therefore, no corrective
action was taken.



Critical
Accounting Policies



Our
financial statements and related public financial information are based
on the application of accounting principles generally accepted in the
United States ("GAAP"). GAAP requires the use of estimates;
assumptions, judgments and subjective interpretations of accounting
principles that have an impact on the assets, liabilities, revenue and
expense amounts reported. These estimates can also affect supplemental
information contained in our external disclosures including information
regarding contingencies, risk and financial condition. We believe our
use if estimates and underlying accounting assumptions adhere to GAAP
and are consistently and conservatively applied. We base our estimates
on historical experience and on various other assumptions that we
believe to be reasonable under the circumstances. Actual results may
differ materially from these estimates under different assumptions or
conditions. We continue to monitor significant estimates made during
the preparation of our financial statements.



Our
significant accounting policies are summarized in Note 1 of our
financial statements. While all these significant accounting policies
impact our financial condition and results of operations, Our views
certain of these policies as critical. Policies determined to be
critical are those policies that have the most significant impact on
our financial statements and require management to use





16



a
greater degree of judgment and estimates. Actual results may differ
from those estimates. Our management believes that given current facts
and circumstances, it is unlikely that applying any other reasonable
judgments or estimate methodologies would cause effect on our
consolidated results of operations, financial position or liquidity for
the periods presented in this report.





PART III



ITEM
9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.



The
names of all directors and executive officers of the Company are as
follows:



|Name                     | Age | Position                 
|------------------------ | --- | -------------------------
|Joseph
M. Valenzano, Jr. | 59  | President,
CEO, Director 
|David
Hirsch             | 58  | Director                 
|Gregg
LaPointe           | 42  | Director                 
|Raymond
C. Smith         | 60  | Director                 
|Ed
McCabe                | 62  | Director                 
|Donald
Chadwick          | 53  | Director,
Sec., Treasurer
|John
F. Crowley          | 37  | Director                 
|Robert
Salluzzo          | 57  | COO/CFO                  
|Rick
Rader, MD           | 56  | Editor
in Chief          



The
above listed officers and directors will serve until the next annual
meeting of the shareholders or until their death, resignation,
retirement, removal, or disqualification, or until their successors
have been duly elected and qualified. Vacancies in the existing Board
of Directors are filled by majority vote of the remaining Directors.
Officers of the Company serve at the will of the Board of Directors .To
the Company’s knowledge, there are no agreements or understandings for
any officer or director to resign at the request of another person nor
is any officer or director acting on behalf of or is to act at the
direction of any other person other than in his fiduciary capacity of
and for the benefit of the Company and at its direction.



Joseph
M. Valenzano, Jr., MBA, APC - President / Chief Executive
Officer / Director



Mr.
Valenzano, age 59, received his bachelor’s degree in economics and
history from Upsala College.  He also holds an MBA in Finance and
Management from Fairleigh Dickinson University.  A Certified
Management Accountant (CMA), Mr. Valenzano was awarded an Advanced
Professional Certificate (APC) in Accounting and Information Systems
from the Graduate School of Business at New York University.





17



Mr.
Valenzano is a frequent speaker at conferences, organizations and
medical and dental organizations serving people with disabilities and
is on the board of a number of prestigious disability organizations. He
is the Founder and Member of the Board of Trustees of the EP Foundation
for Education, Inc., an IRS-approved 501(c)(3) not-for-profit
corporation.  He has served as Chairman of the Executive Advisory
Board for the Child Neurology Society and Child Neurology Foundation
and as a member of the board of directors for the CNF. He is currently
Chairman of the Executive Advisory Board to the American Academy of
Developmental Medicine and Dentistry and a member of the board of
directors of that prestigious professional society.  He also
serves on the board of directors of Oral Health America; CMRA of
Tennessee and MOVE International.



Mr.
Valenzano has over 30 years experience in health care communications.



Positions
he has held include:

 ̈

- Executive Vice President
Operations at Medical Economics where, among others, he oversaw the
Physicians Desk Reference, Medical Economics, Contemporary Pediatrics,
Contemporary OB/GYN, and Contemporary Urology and business and health

- Executive Vice
President-Finance for The Thomson Corporation, one of the world’s
largest communications companies; and

- Vice President-Business
Development with Elsevier-NDU of the Netherlands prior to its merger
with Reed.



He
is the father of five sons, one of whom has a disability.



Rick
Rader, M.D. Editor in Chief



Dr.
Rader, age 55, is Director of the Habilitation Center at Orange Grove
in Chattanooga, Tennessee.  Established in 1953 the center is one
of the country’s premier community agencies providing medical,
therapeutic, vocational, educational, and residential services to
individuals with developmental disabilities.  Dr. Rader is
actively engaged in research projects involving biomechanics,
ergonomics, bio-behavior, communications, mobility, and psychosocial
medicine as related to the special needs community.  Dr. Rader has
spearheaded the drive to train medical students and physicians in
techniques of communicating the expression of pain with non-verbal
retarded citizens.  He is Editor-in-Chief of Exceptional Parent
Magazine, the leading journal for parents and professionals.  He
is active in creating national training standards for direct care staff
in supported living, an outgrowth of de-institutionalization and
community integration. He is also the Chair of the Chattanooga Rehab
Cluster.



Prior
to coming to Chattanooga (Orange Grove) he was the Executive Director
of The American Institute of Stress (New York) with a focus on coping
strategies for children, post traumatic stress disorder and
psychoneuroimmunology.  He has been a featured speaker at the
International Congress on Stress in Switzerland for several years.





18



Dr.
Rader studied medical anthropology with a focus on the biocultural
determinants of health and disease models.  Upon completion of his
medical studies (internal medicine) in London Dr. Rader was appointed
as the director of Operations at Surgical Aid to Children of the World.
 This group pioneered the creation of pediatric surgical
assistance teams and surgical training in the developing world.
 Projects were established in China, Africa, The Middle East,
India and Central America.



Dr.
Rader has also served as the director of Medical Affairs at the
International Medical News Group whose journals (Internal Medicine
News, Family Practice News, Ob-Gyn News, Pediatric News, Clinical Psych
News and Skin and Allergy News) is read by over 400,000 physicians.
 He was also the Medical director at (journals) Infections in
Medicine, Complications in Surgery, Abstracts in Infectious Diseases,
and The AIDS Reader.



He
is a member of the Society of Teachers of Family Medicine and The
American Association on Mental Retardation.  He is a Fellow of The
American Academy for Cerebral Palsy and Developmental Medicine and The
American Institute of Stress



Donald
S. Chadwick, CPA –Director, Secretary, Treasurer



Donald
S. Chadwick, age 53, obtained his Bachelors Degree in Accounting from
Babson College in 1974 and has a Masters of Business Administration in
Strategic Planning from the University of Pittsburgh. Mr. Chadwick is
currently a financial and tax consultant.



Mr.
Chadwick was employed by Price Waterhouse from 1974 to 1985 as an
auditor and later joined the tax department. In 1985 he left Price
Waterhouse to establish a tax consulting practice serving individuals
and corporations.



In
October 1988, Mr. Chadwick formed Cardinal Debt Associates, L.P. (Debt)
and Cardinal Equity Associates, L.P. (Equity) which are business
development companies providing capital to small growth oriented
businesses. In September 2000, Debt provided a short-term loan and line
of credit to Psy Ed. In conjunction with the loan, Equity acquired a
warrant position in Psy Ed which has been exchanged as a result of the
share exchange with East Coast Airlines (now EP Global Communications
Inc.) for 220,754 common shares.



Rear
Admiral Raymond C. Smith, USN (ret.) – Director



Rear
Admiral Ray Smith, USN (Ret), age 60 is widely regarded as one of the
Navy’s most inspirational leaders.   A Navy SEAL for 31
years, Admiral Smith achieved extraordinary success through focused,
participatory leadership.  During his four-year tenure as
Commander of the 2300-men worldwide SEAL force, he raised personnel
retention to a level three times the Navy average.  As a Navy
Captain, Admiral Smith led the Navy SEALs in Operation Desert





19



Storm,
conducting over 200 combat operations of strategic significance while
incurring no casualties.  Earlier in his career, Admiral Smith
directed Navy SEAL training, generally considered to be the most
challenging military training in the world.  While in this
position, Admiral Smith achieved the highest graduation rate in the
50-year history of the course (55%).



Admiral
Smith has been recognized in numerous publications and books, most
recently in Noel Tichy’s book, The Leadership Engine, in which he is
cited as a leader closely involved with employees at every level of his
organization.  Admiral Smith has also been recognized in Newsweek,
Fortune, Readers Digest, and on the Discovery Channel, the History
Channel, and CBS This Morning.



Admiral
Smith was also awarded the California Distinguished Service Award while
a member of the Governor’s Council on Physical Fitness and Sports.
 Working directly for the Council Chair, now Governor of
California Arnold Schwarzenegger,he and his SEALs
focused on inner-city at-risk youth, children with special needs, and
senior citizens.  The Admiral has spoken extensively on his
leadership experiences and the philosophical underpinning which has
supported his enormously successful career. Admiral Smith also
published two highly successful Navy SEAL manuals presently in print by
the Government Printing Office.  These two, The SEAL Nutrition
Manual and The SEAL Physical Fitness Manual, focus on the special
nutritional and fitness needs of Navy SEALs, but have been extremely
well-received by the general population because of their application to
all walks of life.



Prior
to retiring from the U.S. Navy, Admiral Smith was assigned as the
Director of Assessment for the U.S. Navy.  As the first SEAL
Admiral to serve in a general Navy assignment, Admiral Smith was
responsible for developing the Navy’s first capability-based assessment
process.  He led 100 systems analysts in providing service-level
recommendations directly to the Chief of Naval Operations.
 Incorporating computer modeling and risk assessment, he provided
Navy leadership with $36B in analysis-based savings over a six-year
period.



Admiral
Smith lives with his wife Kathy in Pasadena, California.  He has
three sons, two of whom served as Navy SEALS.  He also served as
keynote speaker at EP’s World Congress & Exposition on Disabilities
in September 2001 in Atlanta, Georgia.



John
F. Crowley – Director



John
F. Crowley, age 36, a dynamic biopharmaceutical executive and
entrepreneur, has an impressive track record in the development and
management of small and large companies.  He is the former CEO of
one of biotechnology’s leading success stories of the last several
years Novazyme Pharmaceuticals.  Growing Novazyme from five-person
start-up company to 120-person leading biotechnology R&D company,
he helped raise $27 million in venture capital – culminating in the
sale of Novazyme to Genzyme for a total purchase price of $225 million
in just eighteen months from company inception.  Featured on cover
of The Wall Street Journal





20



(July
31, 2001:  “When Drug Research is Personal”), on The Today Show
(November 2, 2001), as well as the subject of a Harvard Business School
case study now taught at HBS in the second year “Innovating Health
Care” course (A Father’s Love: Novazyme Pharmaceuticals, published
October 22, 2002).  Mr. Crowley was again featured on the front
page of the Wall Street Journal on August 26, 2003 a copy of which is
attached.



From
2001 to 2002, Crowley was Senior Vice President for Genzyme Corporation
in Cambridge, MA and Princeton, NJ and General Manager for Novazyme
Pharmaceuticals (a wholly owned subsidiary). At Genzyme, he served in a
senior executive position for fifteen months following Genzyme’s
acquisition of Novazyme in September 2001. Crowley was responsible for
Drug Development Strategy & Planning; Manufacturing Strategy,
Planning & Oversight; Clinical and Regulatory Development; P&L
Management and Accountability; Merger Integration; Business
Development; Investor Relations.



At
Bristol-Myers Squibb Company in Princeton, NJ from 1998-2000, Crowley
was Director, Executive Committee for the U.S. Medicines Group. He
served in this key leadership development role as special assistant to
the President, U.S. Medicines Group, with overall responsibility for
coordinating daily executive activities of this business for the Group
President and his six direct reports, all division presidents of the
U.S. pharmaceutical and consumer medicines businesses.  U.S.
Medicines Group sales in 1999 exceeded $9 Billion.



He
holds a Masters in Business Administration from Harvard University
Graduate School (1996-1997), where he was elected by Classmates to
deliver Class Commencement Address. He received his Juris Doctor from
the University Of Notre Dame Law School (1989-1992), with Graduation
Awards for Outstanding Achievement in the Art of Oral Advocacy and for
Excellence in Legal Writing. Previously, he graduated with a Bachelor
of Science in Foreign Service from Georgetown University.  Mr.
Crowley was nominated to the United States Naval Academy in Annapolis,
Maryland by both Senator Bill Bradley and Congresswoman Marge Roukema
(N.J.). There he completed three semesters of study. He earned
Commandant’s List honors and was ranked 2/36 Midshipman in his Plebe
year (freshman).



John
Crowley is also founder of The Children’s Pompe Foundation, a 501(c)(3)
charitable organization dedicated to “driving science toward a cure for
Pompe’s Disease.”



David
Hirsch, MD – Director



A
pediatric physician, Dr. Hirsch, age 58 specializes in caring for
children with special health care needs.  He is a partner in
Phoenix Pediatrics, which has seven physicians and a medical and
administrative staff of almost forty.  Over the years he has
worked with hundreds of children with disabilities throughout Arizona.
 Dr. Hirsch is a fellow and is actively involved in the American
Academy of Pediatrics (AAP) as a member in the section on Neurology,
Home Health Care and Developmental Disabilities.  Dr. Hirsch
received three degrees in engineering from Carnegie-Mellon University,
Pittsburgh, PA. Before earning his medical degree at the University





21





of
Cincinnati in 1975.  He did is residency in pediatrics at the
University of Michigan Affiliated Hospitals.   Dr. Hirsch
writes a monthly column called “Ask the Doctor” for Exceptional Parent
and is active on several boards of foundations and non-profit
organizations.  He also serves as a member of Exceptional Parent’s
Editorial Advisory Board.



Mr.
Gregg LaPointe – Director



Gregg
Lapointe has spent his entire professional career in operations and
financial management.  He holds an MBA from the Fuqua School of
Business at Duke University with undergraduate degrees from McGill
University and Concordia University, both in Montreal, Canada.



He
is a chartered accountant (Canada) as well as being a Certified Public
Accountant (Illinois).



He
has held positions of VP Finance leading to the position of Chief
Operating Officer at Sigma Tau Pharmaceuticals, Inc. in Gaithersburg,
Maryland during the period 2001 to 2003.



He
is the chairman of the audit committee for the Board of Directors.



Edward
McCabe – Director



Edwin
McCabe, age 62, is a 1963 graduate of Dartmouth College in Hanover, New
Hampshire, JD Degree (with distinction) from The University of Michigan
Law School in Ann Arbor, Michigan, 1966.  Member of the
Massachusetts Bar.  Active trial lawyer and a member of the First,
Second, Fifth, Eighth, Ninth, Federal and District of Columbia Circuit
Courts of Appeal.  Mr. McCabe has appeared pro hac vice in courts
in nineteen states in the course of his career as a trail lawyer
including The Supreme Court of The United States.  Mr. McCabe’s
professional accomplishments – defeats as well as victories – have been
extensively chronicled in The Boston Globe, The Boston Herald, The Wall
Street Journal, The New York Times, The American Lawyer, The National
Law Journal, Boston Magazine, and in various other local and regional
publications.



Robert
Salluzzo, CPA– COO/CFO



Mr.
Salluzzo, age 57, began his professional career with Price Waterhouse
& Co. in 1969, specializing in all areas of taxation relevant to
multinational corporations, high net worth individuals and various
charitable and personal benefit trusts. In 1976 he established his own
accounting firm focusing on the needs of emerging businesses. In this
capacity, he was involved in the structuring of multi-million dollar
asset based credit facilities as well as integrating funding from
economic development agencies into capital formation plans for
development stage companies.

22



In
1985, he merged his firm into a major regional accounting firm located
in Albany, New York. Mr. Salluzzo was one of six partners responsible
for the substantial growth of the firm. In 1992 he retired to establish
a consulting practice aimed solely at the needs of emerging and
development stage companies with a concentration in aviation related
activities including business planning for airports.



Throughout
his professional career, Mr. Salluzzo has been actively involved in
aviation pursuits, not only as a pilot but also as a consultant in
various aviation matters, including airline certification and
management.



He
was primarily responsible in a consulting role for the construction of
a general aviation airport located in Canandaigua, New York State. He
has consulted with numerous communities on air service needs as well as
being a guest speaker at aviation seminars. He has also teamed with
leading New York State engineering firms in relation to various airport
projects throughout New York State.



Mr.
Salluzzo is a graduate of St. Bonaventure University and is an
honorably discharged Army officer having served in the US Army Field
Artillery.



Other



There
are no family relationships among any of the directors or officers of
the Company.



None
of the foregoing Directors or Executive Officers has, during the past
five years:



(a)
Had any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the
time of the bankruptcy or within two years prior to that time;



(b)
Been convicted in a criminal proceeding or subject to a pending
criminal proceeding;



(c)
Been subject to any order, judgment, or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining, barring, suspending or otherwise
limiting his involvement in any type of business, securities or banking

activities;
and



(d)
Been found by a court of competent jurisdiction (in a civil action),
the Commission or the Commodity Futures Trading Commission to have
violated a federal or state securities or commodities law, and the
judgment has not been reversed, suspended, or vacated.

23



Compliance
with Section 16(a) of the Securities Exchange Act of 1934



The
Company knows of no person, who at any time during the period from
January 1, 2003, to the present, was a director, officer, beneficial
owner of more than ten percent of any class of equity securities of the
Company (a "Reporting Person"), that failed to file on a timely basis
any reports required to be furnished pursuant to Section 16(a). Based
upon a review of Forms 3, 4 and 5 furnished to the Company under Rule
16(a)-3(d) the Company knows of no Reporting Person that failed to file
the required reports within the required time limits.



Audit
Committee and Audit Committee Financial Expert



The
Company has established an audit committee of the Board of Directors
comprised of Mr. Gregg LaPointe and Mr. Donald Chadwick.  The
Board has determined that Mr. Gregg LaPointe, who is an “independent”
director, (as that term is used in Item 7(d)(3)(iv) of Schedule 14A
under Exchange Act) meets all of the criteria required of an audit
committee expert.



Compliance
With Section 16(a) of the Exchange Act



Section
16(a) of the Securities Exchange Act of 1934, as amended, requires our
executive officers and directors and persons who own more than 10% of a
registered class of our equity securities to file with the Securities
and Exchange Commission initial statements of beneficial ownership,
reports of changes in ownership and annual reports concerning their
ownership of our common stock and other equity securities, on Forms 3,
4 and 5 respectively. Executive officers, directors and greater than
10% shareholders are required by the Securities and Exchange Commission
regulations to furnish us with copies of all Section 16(a) reports they
file.

To
the best of our knowledge, all executive officers, directors and
greater than 10% shareholders filed the required reports in a timely
manner.



Code
Of Ethics



The
Company has adopted a Code of Ethics applicable to its Chief Executive
Officer and Chief Financial Officer. This Code of Ethics is filed
herewith as an exhibit.





ITEM
10. EXECUTIVE COMPENSATION.



The
following table sets forth certain information regarding the annual and
long-term compensation for services in all capacities to the Company
for the prior fiscal years ended December 31, 2004, 2003, and 2002 for
the chief executive officer during the last completed fiscal year.
 No other executive officers received more that $100,000.

24



On
May 31, 2001, the Company entered into an Executive Employment
Agreement with its President and Chief Executive Officer.  The
employment agreement expires June 30, 2005 and requires annual
compensation of $120,000, increasing after the first year, annually, by
a percentage equal to the increase in the consumer price index for the
New York/Metropolitan Area for the proceeding year.



The
Company has a Non-Qualified Stock Option Plan (the “Plan) which
provides for granting of “Incentive Stock Options” to key employees
within the meaning of Section 422 of the Internal Revenue Code of 1954
as amended.  The Plan provides for the issuance of 5,000 shares.



Substantially
all of the options outstanding become exercisable twenty (20%) percent
per year from the date of grant and twenty (20%) percent for each year
of the four years thereafter.  The price of the options granted
pursuant to the Plan is not to be less than 100 percent of the fair
market value of the shares on the date of grant. The Company has
adopted the disclosure-only provisions of Statement of Financial
Accounting Standards No. 123 “Accounting for Stock-Based Compensation”,
(SFAS No. 123).  Accordingly no compensation cost has been
recognized for the stock options granted.



The
fair value of each option and warrant grant is estimated on the date of
grant using the Black-Scholes option-pricing model.  No shares or
warrants were granted for the year ending December 31, 2003 and seven
months ending December 31, 2002.



Information
regarding the Company’s options and warrants for December 31, 2004 and
2003 is as follows:



| |                                                             | December
31, 2004
      Shares | Weighted
Average Exercise Price | December
31, 2003
      Shares | Weighted
Average Exercise Price
| | ----------------------------------------------------------- | ------------------------------ | ------------------------------- | ------------------------------ | -------------------------------
| |                                                            
| | Options
and warrants outstanding,
      Beginning
of period | None                           | $ -                             | 14,395                         | $34.22                         
| | Options
and warrants exercised                              |                                |                                 | (14,395)                       | $34.22                         
| | Options
and warrants granted                                | -                              | -                               | -                              | -                              
| | Options
and warrants cancelled                              | -                              | -                               | -                              | -                              
| | Options
and warrants outstanding, end of period             | None                           | $ -                             | None                           | $ -                            
| | Options
and warrants price range, end of period             | N/A                            | N/A                             | N/A                            | N/A                            
| | Fair
value of options and warrants granted during the year  | None                           |                                 | None                           |                                





25



Eparent's
Board of Directors.  The cashless exchange was calculated using
the fair value of the shares at the date of exercise as compared to the
exercise price of the options.  The number of shares to be issued
were reduced based on the calculation.  No cash was received upon
exercise.





ITEM
11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.



The
following table sets forth the record and beneficial ownership of
Company common stock, by each executive officer and director as a group
as well as for any person or group who is known to be the beneficial
owners of more than five per cent (5%) of the commons shares of the
Company as of December 31, 2004:

|Name                                               | Office                                                        | Number
of Shares | Percentage
|-------------------------------------------------- | ------------------------------------------------------------- | ---------------- | ----------
|Joseph
M. Valenzano Jr.                            | CEO
and Director                                              | 4,371,048        | 18.90%*   
|Robert
J. Salluzzo                                 | Chief
Operating Officer (COO) / Chief Financial Officer (CFO) | 717,566          | 3.10%*    
|Donald
Chadwick as Managing Partner or Director ** | Secretary,
Treasurer
      And
      Director                 | 364,736          | 1.58%*    
|Sigma
Tau Pharmaceuticals                          | None                                                          | 2,206,615        | 9.54%*    
|Officers
and Directors as a Group                  |                                                               | 5,453,350        | 24.64%*   



*
    Based on 22,132,818 shares outstanding as of
December 31, 2004.

**
  Mr. Chadwick owns 143,982 shares directly and is the
general partner of Cardinal

Equity
Associates LP which owns 220,754.





ITEM
12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.



There
have been no related party transactions, or any other transactions or
relationships required to be disclosed pursuant to Item 404 of
Regulation S-B.









26

ITEM
13: EXHIBITS AND REPORTS ON FORM 8-K



(a)
Exhibits



The
exhibits that are filed with this report or that are incorporated by
reference are set forth in the Exhibit Index attached hereto.



(b)
Reports on Form 8-K



1.

Current Report on Form 8-K dated and filed December 29, 2004, reporting
an item

7. 01
- Regulation FD Disclosure.



2.

Current Report on Form 8-K,dated September 27, 2004 and filed October
1, 2004,

reporting an item 7. 01 - Regulation FD Disclosure.





ITEM
14: PRINCIPAL ACCOUNTANT FEES AND SERVICES



Audit
Fees



The
aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant’s annual financial statements and review of
financial statements included in the registrant’s Form 10-Q (17 CFR
249.308a) or 10-QSB (17 CFR 249.308b) or services that are normally
provided by the accountant in connection with statutory and regulatory
filings or engagements for those fiscal years are:



2003
Audit fees - $51,247

2004
Audit fees - $37,837



Audit
Related Fees.



The
aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit or review of the
registrant’s financial statements and are not reported under Item
9(e)(1) of Schedule 14A are:



NONE



Tax
Fees



The
aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are:







27



NONE



All
Other Fees



The
aggregate fees billed in each of the last two fiscal years for products
and services provided by the principal accountant, other than the
services reported in Items 9(e)(1) through 9(e)(3) of Schedule 14A. are:



NONE



SIGNATURES



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





|EP
Global Communications,  Inc. (Registrant)
|--------------------------------------------

| |                                                                                                                                                                                                                      |                                                                                               
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                      |                                                                                               
| | By:                                                                                                                                                                                                                  | /s/
Joseph M. Valenzano, Jr.
      Joseph
M. Valenzano, Jr, President, Chief Executive Officer
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      | /s/
Robert J. Salluzzo
      Robert
J. Salluzzo, Chief Operating (and Financial) Officer      
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      |                                                                                               
| | In
accordance with the requirements of the Securities Exchange Act of
1934, this Report has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      | /s/
Joseph M. Valenzano, Jr.
      Joseph
M. Valenzano, Jr, Director                          
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      | /s/
Donald S. Chadwick
      Donald
S. Chadwick, Director                                     
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      | /s/
Edward McCabe
      Edward
McCabe, Director                                               
| |                                                                                                                                                                                                                      |                                                                                               
| |                                                                                                                                                                                                                      | /s/
Gregg LaPointe
      Gregg
LaPointe, Director                                             
| |                                                                                                                                                                                                                      |                                                                                               
| | Dated:                                                                                                                                                                                                               | April
13, 2005                                                                                



28



EXHIBIT
INDEX



(3)(i)
Certificate of Incorporation, Incorporated herein by reference to
Company's Form 10SB

filed
with the Commission on June 13, 2000.



(3)(ii)
By-Laws of the Company, Incorporated herein by reference to Company's
Form 10 SB

filed
with the Commission on June 13, 2000.



(31.1)
Rule 13a-14(A) Certification Of Chief Executive Officer



(31.2)
Rule 13a-14(A) Certification Of Chief Financial Officer



(32.1)
Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant
To Section 906

Of
The Sarbanes-Oxley Act Of 2002



(32.2)
Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant
To Section 906

Of
The Sarbanes-Oxley Act Of 2002



(99.3)
 Corporate Code of Ethics and Conduct



OTHER
DOCUMENTS INCORPORATED HEREIN BY REFERENCE



(a)
The Company's quarterly reports on Form 10-QSB for the periods ended
March 31, 2004,

June
30, 2004 and September 30, 2004.



(b)
All other reports filed by the Company pursuant to Section 13(a) or
15(d) of the Securities

Exchange
Act since the Company's fiscal year ended December 31, 2003.







29









EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARIES



Index





| |                                                                                                     | Page      
| | --------------------------------------------------------------------------------------------------- | ----------
| | Report
of Independent Registered Public Accounting Firm                                             | F2        
| |                                                                                                     |           
| | Consolidated
Balance Sheet December 31, 2004                                                        | F3  -  F4 
| | Consolidated
Statements of Operations, for the Years Ended December 31, 2004 and 2003               | F5        
| | Consolidated
Statements of Stockholders' Deficiency, for the Years Ended December
31, 2004 and 2003 | F6        
| | Consolidated
Statements of Cash Flows, for the Years Ended December 31, 2004 and 2003               | F7  -  F8 
| | Notes
to Consolidated Financial Statements                                                          | F9  -  F27
| |                                                                                                     |           







F-1



|Two
Industrial Way West, Eatontown, NJ  07724  (732) 544-8111
 Fax (732) 544-8788  E-Mail: tax@wgpc.net
      
      Wiener,
Goodman
      & Company, P.C.
      Certified Public Accountants
      &
Consultants
      
      Joel Wiener, CPA
      Gerald Goodman, CPA
      Memberships
      SEC Practice Section of AICPA
      PCPS of AICPA
      American Institute of CPA
      New Jersey Society of CPA
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To
the Board of Directors and Stockholders of

EP
Global Communications, Inc.





We have audited the accompanying consolidated balance
sheets of EP Global Communications, Inc. and subsidiaries (the
“Company”) as of December 31, 2004, and the related consolidated
statements of operations, stockholders’ deficiency and cash flows for
each of the two years in the period ended December 31, 2004.
 These financial statements are the responsibility of the
Company’s management.  Our responsibility is to express an opinion
on these financial statements based on our audits.



We conducted our audits in accordance with the
standards of the Public Company Accounting Oversight Board (United
States).  Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable
basis for our opinion.



In our opinion, such consolidated financial statements
present fairly, in all material respects, the financial position of EP
Global Communications, Inc. and subsidiaries as of December 31, 2004,
and the results of their operations and their cash flows for each of
the two years in the period ended December 31, 2004, in conformity with
accounting principles generally accepted in the United States of
America.



[f10k001.jpg]



WIENER, GOODMAN & COMPANY, P.C.



Eatontown, New Jersey

February 24, 2005





F-2



EP Global Communications, Inc. And Subsidiaries

Consolidated Balance Sheet

ASSETS

[f10k003.jpg]





See notes to consolidated financial statements.







F-3





EP Global Communications, Inc. And Subsidiaries

Consolidated Balance Sheet

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY

[f10k005.jpg]





See notes to consolidated financial statements.



F-4





EP Global Communications, Inc. And Subsidiaries

Consolidated Statements Of Operations

[f10k007.jpg]



See notes to consolidated financial statements.





F-5





EP Global Communications, Inc. And Subsidiaries

Statement of Stockholders Deficiency



[f10k009.jpg]





See notes to consolidated financial statements.





F-6





EP Global Communications, Inc. And Subsidiaries

Consolidated Statements Of Cash Flows



[f10k011.jpg]





See notes to consolidated financial statements.







F-7





EP Global Communications, Inc. And Subsidiaries

Consolidated Statements Of Cash Flows - Continued



[f10k013.jpg]





See notes to consolidated financial statements.









F-8





EP Global Communications, Inc. And Subsidiaries

Notes To Consolidated Financial Statements

December 31, 2004



1.

Description Of
Business And Summary Of Significant Accounting Policies



Basis of Presentation



On November 28, 2003, East Coast Airlines, Inc.
 ("East Coast") entered into a share exchange agreement with
Psy-Ed Corporation.  In connection with the share exchange, East
Coast acquired the assets and assumed the liabilities of Psy-Ed
Corporation.  For accounting purposes, the share exchange
agreement has been treated as a recapitalization of Psy-Ed Corporation
as the acquirer.  The financial statements prior to November 28,
2003 are those of Psy-Ed Corporation.  See Note 2 of Notes to
Consolidated Financial Statements.



Organization



EP Global Communications, Inc., formerly East Coast
Airlines, Inc., and Subsidiaries (“EP” or the “Company”), operates its
business through its subsidiary, Psy-Ed Corporation (d/b/a Exceptional
Parent Magazine).  EP publishes and distributes Exceptional Parent
Magazine, an international publication, designed to serve the
information needs of families and professionals who are involved in the
care and development of children and adults with disabilities and
special health care needs.  EP also develops and implements online
accredited Continued Medical Education Programs; has its own library of
over 1,000 disability book titles and publishes clinical monographs
which are disseminated to physicians, researchers and allied health
care professionals as well as families and caregivers all over the
world.



Significant Accounting Policies



Principles of Consolidation



The consolidated financial statements include the
accounts of the Company and its majority-owned subsidiaries.  All
intercompany transactions and balances have been eliminated.



Use of Estimates



The preparation of the consolidated financial
statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial



F-9



statements and the reported amounts of revenues and
expenses during the reporting period.  Actual results could differ
from those estimates.



Concentration of Credit Risk



Financial instruments which potentially subject the
Company to concentrations of credit risk consist principally of cash
and trade receivables.



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



The Company grants credit primarily to advertisers
based on an evaluation of the customer’s financial condition, without
requiring collateral.  Exposure to losses on these receivables is
principally dependent on each customer’s financial condition.  A
majority of the subscription income is received in advance and presents
little risk to the Company.  The Company controls its exposure to
credit risk through monitoring procedures and establishes appropriate
allowances for anticipated losses.



Provision for Losses on Uncollectible Receivables



The provisions for losses on uncollectible trade
receivables are determined principally on the basis of specific
identification and past collection experiences.  Allowances for
doubtful accounts on accounts receivable balances was approximately
$41,000 at December 31, 2004.



Inventories



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



Revenue Recognition



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



F-10



Online services advertising revenues, primarily
derived from the sale of banner advertisements and sponsorships on the
Company's web sites, is recognized in the period the advertising is
displayed.  The costs to develop this internet income are period
costs and are expensed when incurred.  Print publication
advertising and circulation revenues are recognized, net of agency
commissions and estimated returns and allowances, when publications are
issued.  List rental income is recognized, net of commission, when
a list is sold or rented.



Deferred subscription income, net of agency commission
is recorded when subscription orders are received.  The Company
uses a fulfillment house, which calculates the revenue to be recorded
for all periods.  Customers generally subscribe to the magazine
for a three year period of time.  Deferred subscription income
represents the portion of the prepaid subscription not earned by the
Company and paid for in advance of fulfillment by the Company to the
customer.



Depreciation and Amortization



Property and equipment are stated at cost less
accumulated depreciation and amortization.  Depreciation of
property and equipment is calculated on the straight-line method over
the estimated useful lives of the respective assets, ranging from three
to five years.  Leasehold improvements are amortized over the
lesser of the useful life of the asset or the term of the lease.



Stock-Option Plan



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



In December 2002, the FASB issued SFAS No. 148,
“Accounting for Stock-Based Compensation-Transition and Disclosure, an
amendment of FASB Statement No.  123”.  SFAS No. 148 provides
alternative methods of transition for a voluntary change to the fair
value based method of accounting for stock-based employee compensation.

It also requires disclosure in both annual and interim
financial statements about the method of accounting for stock-based
employee compensation and the effect of the method used on reported
results.   The Company adopted the disclosure provisions of
SFAS No. 148 beginning with the year ended December 31, 2002.  The
Company



F-11



grants stock options with exercise prices at fair
market value at the date of grant.  The Company will continue to
account for stock-based employee compensation under the recognition and
measurement principle of APB Opinion No. 25 and related interpretations
through December 31, 2005.



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



The Company has adopted the disclosure-only provisions
of SFAS No. 123, "Accounting for Stock-Based Compensation"(SFAS No.
123).  Had compensation cost for the Company's stock option plan
been determined based on the fair value at the grant date for awards in
2003 consistent with the provisions of SFAS No. 123, the Company's net
earnings (loss) and earnings (loss) per share would have been reduced
to the pro forma amounts indicated below:



[f10k015.jpg]



No options or warrants were granted during the year
ended December 31, 2004.



F-12

Income Taxes



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



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



Evaluation of Long-Lived Assets



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



Earnings (Loss) Per Share



Basic earnings (loss) per common share are computed by
dividing net earnings (loss) by the weighted average number of common
shares outstanding during the year.   Diluted earnings per
common share are computed by dividing net earnings by the weighted
average number of common shares and potential common shares outstanding
during the year.  The basic weighted average shares were used in
calculating year ended December 31, 2004 diluted loss per share, as
inclusion of the incremental shares shown in this calculation would be
antidilutive.  Potential common shares used in computing diluted
earnings per share relate to stock options, warrants and convertible
preferred stock which, if exercised, would have a dilutive effect on
earnings per share.



The following table includes a reconciliation of
shares used in the calculation of basic and diluted earnings (loss) per
share:



F-13





[f10k017.jpg]



* Preferred stock convertible into 719,801 shares of
common stock was not

included in the foregoing
computation for 2004 because they were antidilutive.



Fair Value of Financial Instruments



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



New Financial Accounting Standards



In December 2004, the Financial Accounting Standard
Board (“FASB”) issued Statement on Financial Accounting Standards
("SFAS") No. 123(R), "Share-Based Payment" (revised), that will require
compensation costs related to share-based payment transactions to be
recognized in the financial statements.  With limited exceptions,
the amount of compensation cost will be measured based on the
grant-date fair value of the equity or liability instruments issued.
 In addition, liability awards will be remeasured each reporting
period.  Compensation cost will be recognized over the period that
an employee provides service in exchange for the reward.  The
statement also amends SFAS No. 95, "Statement of Cash Flows", to
require that excess tax benefits be reported as a financing cash inflow
rather than as a reduction of taxes paid.  SFAS No. 123(R) is
effective as to the Company as of the beginning of the first interim
period that begins after December 15, 2005.  The Company is
currently evaluating its position and will make its determination to
account for the compensation costs either prospectively or
retroactively at the time of adoption.  The adoption of SFAS
123(R) is not expected to have a material effect on the Company's
reported results of operations.



In December 2004, the FASB issued SFAS No. 153 an
amendment of APB Opinion No. 29 "Exchanges of Nonmonetary Assets".
 SFAS No. 153 amends APB Opinion No. 29 by eliminating the
exception under APB No. 29 for nonmonetary exchanges of similar
productive assets and replaces it with a general exception for
exchanges of



F-14



nonmonetary assets that do not have commercial
substance.  A nonmonetary exchange has commercial substance if the
future cash flows of the entity are expected to change significantly as
a result of the exchange.  SFAS No. 153 is effective for periods
beginning after June 15, 2005.  The adoption of SFAS No. 153 is
not expected to have a material effect on the Company's financial
position or results of operations.



In November, 2004 the FASB issued SFAS No. 151, an
amendment to ARB No. 43 chapter 4 "Inventory Costs".  SFAS No. 151
requires that abnormal costs of idle facility expenses, freight,
handling costs and wasted material (spoilage) be recognized as
current-period charges.  SFAS No. 151 is effective for fiscal
years beginning after June 15, 2005.  Adoption of SFAS No. 151 is
not expected to have a material impact on the Company's results of
operations or financial position.



In December 2003, the FASB issued SFAS No. 132(R),
“Employer’s Disclosure about Pensions and Other Postretirement
Benefits" (revised).  SFAS No. 132(R) retains disclosure
requirements of the original SFAS No. 132(R) and requires additional
disclosures relating to assets, obligations, cash flows, and net
periodic benefit cost.  SFAS No. 132(R) is effective for fiscal
years ending after December 15, 2003, except that certain disclosures
are effective for fiscal years ending after June 15, 2004.
 Interim period disclosures are effective for interim periods
beginning after December 15, 2003.  The adoption of SFAS No.
132(R) did not have a material effect on the Company’s results of
operations or financial position.



In May 2003, the FASB issued SFAS No. 150, “Accounting
for Certain Financial Instruments with Characteristics of Both
Liabilities and Equity.” SFAS No. 150 clarifies the accounting for
certain financial instruments with characteristics of both liabilities
and equity and requires that those instruments be classified as
liabilities in statements of financial position.  Previously, many
of those financial instruments were classified as equity.  SFAS
No. 150 is effective for financial instruments entered into or modified
after May 31, 2003, and otherwise is effective at the beginning of the
first interim period beginning after June 15, 2003.  The adoption
of the provisions of SFAS No. 150 did not have a material effect on the
Company’s financial position.



In January 2003, the FASB issued FASB Interpretation
("FIN") No. 46, "Consolidation of Variable Interest Entities."  In
December 2003, the FASB issued FIN No. 46(R) (revised) to address
certain FIN No. 46 implementation issues.  This interpretation
requires that the assets, liabilities, and results of activities of a
Variable Interest Entity (“VIE”) be consolidated into the financial
statements of the enterprise that has a controlling interest in the
VIE.  FIN No. 46(R) also requires additional disclosures by
primary beneficiaries and other significant variable interest holders.
 For entities acquired or created before February 1, 2003, this
interpretation is effective no later than the end of the first interim
or reporting period ending after March 15, 2004, except for those VIE’s
that are considered to be special purpose entities, for



F-15



which the effective date is no later than the end of
the first interim or annual reporting period ending after December 15,
2003.  For all entities that were acquired subsequent to January
31, 2003, this interpretation is effective as of the first interim or
annual period ending after December 31, 2003.  The adoption of FIN
No. 46 did not have a material impact on the Company's results of
operations or financial position.



In November 2002, the FASB issued FIN No. 45,
"Guarantor’s Accounting and Disclosure Requirements for Guarantees,
Including Indirect Guarantees of Indebtedness of Others", and
interpretation of FASB Statements No. 5, 57 and 107 and Rescission of
FASB Interpretation No. 34.  FIN No. 45 clarifies the requirements
of SFAS No. 5, Accounting for Contingencies, relating to the
guarantor’s accounting for, and disclosure of, the issuance of certain
types of guarantees.  This interpretation clarifies that a
guarantor is required to recognize, at the inception of certain types
of guarantees, a liability for the fair value of the obligation
undertaken in issuing the guarantee.  The initial recognition and
initial measurement provisions of this Interpretation are applicable on
a prospective basis to guarantees issued or modified after December 31,
2002, irrespective of the guarantor’s fiscal year-end.  The
disclosure requirements in this interpretation are effective for
financial statements of interim or annual periods ending after December
15, 2002.  The Company adopted FIN No. 45 on January 1, 2003.
 The adoption of FIN No. 45 did not have a material impact on the
Company's results of operations or financial position.



In June 2002, the FASB issued SFAS No. 146,
"Accounting for Costs Associated with Exit or Disposal Activities."
 This Statement requires recording costs associated with exit or
disposal activities at their fair values when a liability has been
incurred.  Under previous guidance, certain exit costs were
accrued upon management's commitment to an exit plan.  The Company
adopted SFAS No. 146 on January 1, 2003.  The adoption of SFAS No.
146 did not have a material impact on the Company's result of
operations or financial position.





2.

Share Acquisition
Agreement



On November 28, 2003, East Coast entered into a share
acquisition agreement with Psy-Ed Corporation d/b/a Exceptional Parent
("EParent").  See Note 1 of Notes to Consolidated Financial
Statements.



As provided for in the share acquisition agreement,
the stockholders of EParent received 190 shares of East Coast common
stock in exchange for each share of EParent common stock they held.
  A total of 13,010,984 shares of East Coast were issued to
EParent stockholders in connection with  the share acquisition
exchange.   Immediately following the share acquisition
exchange, East Coast had a total of 20,326,818 shares of common stock
issued and outstanding excluding shares issuable upon conversion of
Eparent's Series A and Series B Preferred Stock.



F-16



In addition, the resignations of Robert Salluzzo and
Charles Youngblood from the Board of Directors of East Coast and from
their positions as President and Chief Executive Officer and a
Secretary, respectively, took effect upon the close of the share
acquisition exchange.   The EParent Board of Directors became
the Board of Directors of East Coast and Joseph M.  Valenzano, Jr.
 became the President and Chief Executive Officer.



The name of the new parent company was changed to EP
Global Communications, Inc.   Assuming the EParent
stockholders owning all of the 3,642 EParent Series A and Series B
preferred shares first convert them to EParent common shares and then
exchange their common shares for 630,066 East Coast common shares, the
EParent stockholders will then own approximately 65% of East Coast's
outstanding common stock.  While the former stockholders now own
more than a majority of the issued and outstanding shares of East
Coast, no individual stockholder holds enough shares to assert control
over East Coast and neither East Coast or EParent is aware of any group
of stockholders that is acting together in order to assert control over
East Coast.





3.

Property And
Equipment



Property and equipment at December 31, 2004 consists
of the following:



[f10k019.jpg]





Depreciation expense for the years ended December 31,
2004 and 2003 was $21,675 and $15,990, respectively.





4.

Accrued Expenses



Accrued expenses at December 31, 2004 consist of the
following:



[f10k021.jpg]



F-17

5.

Debt



Long Term Debt



Long-term debt at December 31, 2004 consists of the
following:



[f10k023.jpg]



F-18





(1)

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

(2)

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



The following are maturities of long-term debt:



[f10k025.jpg]





Short-term debt



Short-term bank obligations at December 31, 2004,
consists of the following:



[f10k027.jpg]





(3)

The line of credit is secured by the Company’s
accounts receivable, inventory and property and equipment.
  The line of credit is expected to be continued subject to
payments of $75,000 in both March and April 2005.



6.

Capital Lease
Obligation



The Company is the lessee of equipment under one
capitalized lease expiring December 2008.  Future minimum lease
payments under the lease are as follows:



F-19



[f10k029.jpg]



7.

Related Party
Transactions



Note payable to officer/stockholder at December 31,
2004 consists of the following:



[f10k031.jpg]



See Note 9 of the Notes to Consolidated Financial
Statements for other related party transactions





8.

Income Taxes



The liability method, prescribed by SFAS No. 109,
“Accounting for Income Taxes”, is used by the Company in accounting for
income taxes.  Under this method, deferred tax assets and
liabilities are determined based on differences between financial
reporting and tax basis of assets and liabilities and are measured
using the enacted tax rates and laws that are expected to be in effect
when the differences are expected to reverse.



During the year ended December 31, 2004, the Company
recorded a deferred tax asset associated with its net operating loss
(“NOL”) carryforwards of approximately $2,040,000 that was fully offset
by a valuation allowance due to the determination that it was more
likely than not that the Company would be unable to utilize these
benefits in the foreseeable future.  The Company’s NOL
carryforward expires beginning in 2010 through 2017.



F-20



There is no provision for income taxes for the years
ended December 31, 2004 and 2003 as there was no taxable income in
either year.



The types of temporary differences between tax basis
of assets and liabilities and their financial reporting amounts that
give rise to the deferred tax liability and deferred tax asset and
their approximate tax effects are as follows:



[f10k033.jpg]



The provision for income taxes on earnings differs
from the amount computed using the federal statutory rate of 34% as a
result of the following:



[f10k035.jpg]



See Note 2 regarding the Company's business
combination pursuant to a share acquisition agreement.  The
business combination was a tax-free merger pursuant to Internal Revenue
Code Section 368. Accordingly, in connection with this merger, the
Company's ultimate recognition of its NOL became subject to Internal
Revenue Code Section 382.



The general tax principle underlying Code Section 382
is that losses incurred by a corporation may be utilized by offsetting
income it later generates, as long as its separate existence and the
identity of its major shareholders are basically unchanged. However,
significant limitations to the use of the Company's NOL may apply if
there is an ownership change.  The testing period is defined as
the three-year period ending on the day of any shift involving a
five-percent shareholder or the equity structure.



F-21



While the Company does not believe the ultimate
realization of its NOL carryforward will be impacted by the merger, it
can give no assurance that limitations that may exist under the
prevailing, or future, Code Section 382 will not apply.





9.

Stock Issued for
Services



For the year ended December 31, 2004, the Company
issued 1,806,000 shares of the Company's common stock to employees and
non-employees as stock-based compensation in the amount of $16,254.
 Of the amounts 800,000 shares ($7,200) were issued to officers of
the Company (a related party transaction).  The Company accounts
for the services using the fair market value of the services rendered.



10.

Stockholders'
Deficiency



Common Stock



The Company is authorized to issue 60,000,000 shares
of $.001 par value common stock.  All the outstanding Common Stock
is fully paid and non-assessable.



Preferred Stock – Series A



The Company is authorized to issue 5,000,000 shares of
$ .01 par value Preferred Stock – Series A.  All the outstanding
Preferred Stock is fully paid and non-assessable. Each share of the
Preferred Stock is convertible, at the option of the holder at any
time, into 190 shares of the Company’s Common Stock.  The holders
of Series A preferred Stock  have the following rights.



Dividends:



If any dividend is declared on the Company’s Common
Stock in any fiscal year, the holders of the Series A Preferred Stock
first shall be entitled to receive a dividend of $200 per share in
preference to the payment of any dividends on the Company’s
 Common Stock.



Liquidation Preference



In the event of any liquidation or winding up of the
Company, if the funds available for liquidation are less than
$4,000,000 the holders of the Series A Preferred Stock shall be
entitled to receive in full, prior to any other distribution made on
the Company’s Common Stock, cash dividends in an amount of $25.00 per
share (as adjusted for any stock dividends, combinations or splits with
respect to such shares), on an equal basis with any distribution to be
made to the holders of the Series B Preferred Stock.



F-22





After this preferred amount, if any, has been paid in
full, any of the Company’s remaining funds and assets legally available
for distribution to shareholders will be distributed on an as-converted
basis to the holders of the shares of Series A and Series B Preferred
Stock and our Common Stock.  If the funds available for
distribution to stockholders on liquidation is greater than $4,000,000,
then such funds will be distributed to the holders of the Series A
Preferred Stock and Series B Preferred Stock (on a pro rata basis based
on the number of shares of common stock into which all such shares of
preferred stock are convertible) and the holders of the Company’s
Common Stock.



Redemption



Upon the sale by the Company of its capital stock
which results in 51% of capital stock being held by persons other than
those who held its capital stock on September 30, 1995 then the Company
must offer to redeem the Series A Preferred Stock at a price equal to
two times the conversion price of the Series A Preferred Stock
(currently $25 per share).  Notwithstanding the foregoing, if the
Company does not have sufficient funds to redeem the Series A Preferred
Stock without causing a material adverse effect on the Company’s
 ability to carry out its business, only the funds that are
available that will not cause such material adverse effect shall be
used to redeem the Series A Preferred Stock.  This redemption
requirement will continue until such time as all of the shares of
Series A Preferred Stock have been redeemed.



Conversion



Each Share of Series A Preferred Stock is convertible
into 190 shares of Common Stock (subject to adjustment) at any time at
the option of the holder.  The Preferred Stock automatically
converts into the Company’s Common Stock upon the consummation of a
public offering by the Company with aggregate proceeds or fair market
value in excess of $4,000,000.  All rights incident to a share of
Series A Preferred Stock will terminate automatically upon any
conversion of such shares into Common Stock.  The Conversion Rate
will be subject to appropriate adjustment upon any stock split, reverse
stock split or stock dividend or similar transaction.



Anti-dilution Adjustments:



The Series A Preferred Stock  provides for
proportional adjustments to the conversion rate for stock splits,
dividends, recapitalizations and similar transactions.



F-23





Voting Rights



Holders of the Series A Preferred Stock are entitled
to vote on all matters submitted to the Company’s shareholders for a
vote or consent.  Each Share of Series A Preferred Stock has
voting rights equal to the number of shares of Common Stock  into
which it converts (presently 190 for 1).  Except when a separate
class vote is required by law, the Series A Preferred Stock will vote
with the Common Stock as a single class.



Preferred Stock – Series B



The Company is authorized to issue 5,000,000 shares of
$1.00 par value cumulative Preferred Stock – Series B.  All the
outstanding Preferred Stock is fully paid and non-assessable. Each
share of the Preferred Stock is convertible, at the option of the
holder at any time, into 277 shares of the Company’s Common Stock..
 Holders of the Series B Preferred Stock are entitled to 10%
cumulative dividend if declared by the Board of Directors. This class
of stock holds liquidation preferences and is redeemable in December
2005 for face value plus accrued dividends.



Dividends:



The holders of the Series B Preferred Stock shall be
entitled to cumulative dividends of 10% per share prior to the Company
paying any dividends on the Series A Preferred Stock or its Common
Stock.



Liquidation Preference



In the event of any liquidation or winding up of the
Company, if the funds available for liquidation are less than
$4,000,000 the holders of the Series B Preferred Stock shall be
entitled to receive in full, prior to any other distribution made on
the Company’s Common Stock, cash dividends in an amount of $61.00 per
share (as adjusted for any stock dividends, combinations or splits with
respect to such shares), plus all accumulated and unpaid dividends, on
an equal basis with any distribution to be made to the holders of the
Series B Preferred Stock.



After this preferred amount has been paid in full, any
of the Company’s remaining funds and assets legally available for
distribution to shareholders will be distributed on an as-converted
basis to the holders of the shares of Series A and Series B Preferred
Stock and our Common Stock.



F-24



If the funds available for distribution to
stockholders on liquidation is greater than $4,000,000, then such funds
will be distributed to the holders of the Series A Preferred Stock and
Series B Preferred Stock (on a pro rata basis based on the number of
shares of common stock into which all such shares of preferred stock
are convertible) and the holders of Company’s Common Stock on a pro
rata basis.





Redemption



Upon the sale by the Company of its capital stock
which results in 51% of capital stock being held by persons other than
those who held its capital stock on September 30, 1995 then the Company
must redeem the Series A Preferred Stock at a price equal to two times
the conversion price of the Series A Preferred Stock (currently $61 per
share).  In addition, the Series B Preferred Stock is redeemable
by the Company in December 2005 for its issue price of $61 per share
plus accrued dividends.  Notwithstanding the foregoing, if the
Company does not have sufficient funds to redeem the Series B Preferred
Stock without causing a material adverse effect on the Company’s
ability to carry out its business, only the funds that are available
that will not cause such material adverse effect shall be used to
redeem the Series B Preferred Stock.  This redemption requirement
will continue until such time as all of the shares of Series B
Preferred Stock have been redeemed.



Conversion



Each share of Series B Preferred Stock is convertible
into 277 shares of Common Stock (subject to adjustment) at any time at
the option of the holder.  The Series B Preferred Stock
automatically converts into the Company’s Common Stock upon the
consummation of a public offering by the Company with aggregate
proceeds or fair market value in excess of $4,000,000.  All rights
incident to a share of Series B Preferred Stock will terminate
automatically upon any conversion of such shares into Common Stock.
 The Conversion Rate will be subject to appropriate adjustment
upon any stock split, reverse stock split or stock dividend or similar
transaction.



Anti-dilution Adjustments:



The Series B Preferred Stock  provides for
proportional adjustments to the conversion rate for stock splits,
dividends, recapitalizations and similar transactions.



Voting Rights



Holders of the Series B Preferred Stock are entitled
to vote on all matters submitted to the Company’s shareholders for a
vote or consent.  Each Share of Series B Preferred Stock has
voting rights equal to the number of shares of Common Stock  into
which it converts (presently 277 for 1).  Except when a separate
class vote is required by law, the Series B Preferred Stock will vote
with the Common Stock as a single class.



F-25



11.

Sale Of Interest In
LLC



EP Global, during September 2004, entered into a joint
venture with the InforMedx Group, LLC, (“InforMedx”) a  subsidiary
of the Conemaugh Health System of Johnstown, Pennsylvania, to promote
on line educational seminars, using a web based medium presenting
topics that relate to the care of special needs individuals.  The
content of the seminars is medically based in most instances.  The
intended audiences are professional, and aligned and family caregivers
of special needs individuals.



To implement the joint venture, EP has established a
limited liability company, EP Educational Network LLC, (“Network”) and
InforMedx has agreed to pay $210,000 for a one half interest in this
newly established entity.  Of this amount $100,000 was received in
September 2004 with the balance due September 2005.  The balance
of $110,000 receivable is included on the consolidated balance sheet as
other amounts receivable.



All content used is to remain the property of EP with
anyjointly developed content being the property of seminars
with each of the parties able to utilize the content in any manner so
long as that use is not disruptive to the purpose, intent or in
conflict with the business activities of seminars.  Profits are to
allocated based on the ownership ratio.



EP has recognized the gain on the sale of the 50%
interest in the limited liability company in the statement of
operations for the year ended December 31, 2004.





12.

Minority Interests



Minority interests consist of a fifty percent (50%)
ownership interest in InforMedx Group, LLC, (see Note 11).  The
income from the operation of the entity and its respective minority
interests have been reflected in the Company’s statement of operations
for the year ended 2004.  The amount on the Company’s balance
sheet represents the minority interests at December 31, 2004





13.

Commitments and
Contingencies



Operating Leases



The Company has operating leases for office space
expiring in 2006  and office equipment expiring in 2008.
  Total operating lease expense amounted to $111,988 and
$102,035 in 2004 and 2003, respectively.  Subsequent lease
payments are as follows:



F-26

[f10k037.jpg]



Legal Proceedings



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





F-27