I got my first Epic item in STV, the same day I hit lvl 40 :) :)  i got it from the ogres at the Mosh'ogg Ogre Mound.  It was a shield that ended up selling for 189 gold in AH.  That paid for my mount and then some.  The WoW Gods were definately smiling on me that day!!!  w00tw00t

I didnt see the epic drop I got on any of the ogre's drop lists.  Maybe its a new addition?  Worth checking out though.  Didnt take me long to get it =]