I remembered having trouble with this previously, so I just tried it again.
It "supports" epub in that I can load a DRM-free epub file onto it and then view it on the device, but it's not formatted well. The default font is unnecessarily large, some italicized text isn't being italicized, icons and other images are missing, and other layout elements aren't being rendered (sidebars for instance). This could be a problem with this specific file, but the PDF version renders fine and I think this might be the same trouble I was having with another epub file.