Shares of Vasomedical, Inc. (OTCBB: VASO) were up as much as 86 percent on Monday after the company announced that its subsidiary was appointed the exclusive representative for select GE Healthcare Diagnostic Imaging products to specific market segments in the 48 contiguous states of the United States and District of Columbia received signed a sales representative agreement. GE Healthcare is the healthcare business unit of GE (NYSE: GE – News). The Company has already received financial commitments for up to $5 million to fund this project.

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“This representation agreement is an example of Vasomedical’s strategy to expand its operations into new areas of potential growth in healthcare,” stated Abraham E. Cohen, Chairman of the Board of Vasomedical, Inc. in a statement.

The agreement is for an initial term of three years commencing July 1, 2010, subject to extension and also subject to earlier termination under certain circumstances.

Vasomedical, Inc. is primarily engaged in designing, manufacturing, marketing and supporting EECP(R) external counterpulsation systems based on the Company’s proprietary technology. Offered exclusively by Vasomedical, EECP therapy is a safe, non-invasive, outpatient treatment option for patients suffering from ischemic heart diseases such as angina and heart failure

In early April, the company announced that it received clearance from the U.S. Food and Drug Administration to market its Vasomedical-BIOX™ Model 2301 Combined ECG Holter and Ambulatory Blood Pressure Monitoring Recorder and Software Analysis System.

“These are the first in a line of Vasomedical-BIOX™ ECG Holter and Ambulatory Blood Pressure Monitoring Systems that Vasomedical intends to bring to the marketplace,” said Dr. Jun Ma, President and CEO of Vasomedical, Inc.

Shares of Vasomedical are up more than 300 percent over the past 12 months.