CRANS-MONTANA, September 7, 2014 (AFP) - Lying fourth, three shots off Storm after the third round, Lipsky parred the first sudden death hole, with Storm making a five after his wayward tee shot ended up nestling against a wall.
The pair had both ended the regulation 72 holes with an 18-under par total of 262.
Storm, who won a BMW for a hole in one 24 hours earlier, had kept his cool to par the 18th hole and remain level with Lipsky, who went round in a five under 65.
Lipsky, playing in the penultimate group, birdied the 18th with an approach to within inches of the hole.
That left Storm, who aced the par three 11th on Saturday, needing a three for victory but he played safe to set up the play-off.
The 26-year-old Lipsky was only the second American to win the Swiss event after Craig Stadler back in 1985.
Storm and Lipsky were one shot ahead of Brooks Koepka, who was tied for the lead with Storm until a bogey on the 17th where his approach plugged in a greenside bunker, and Tyrrell Hatton, who ended with a 65.
France's Romain Wattel drove off in a new car after matching Storm's hole-in-one feat of the day before.
But unlike Storm who gets to keep his, Wattel only has the use of his BMW for a year, before having to return it.
"Unfortunately it was one day too late!" said Wattel.
"But I'm obviously still really pleased with it, and with my performance today.
"I played very well over the weekend; it was just a shame I took too long to get started on the first two days. But I'm still delighted."
Fourth round scores from the EPGA European Masters at Crans Montana on Sunday (par 70, GBR & IRL unless stated):
262 - David Lipsky (USA) 67 64 66 65, Graeme Storm 64 66 64 68
(Lipsky wins at first play-off hole)
263 - Brooks Koepka (USA) 65 65 66 67, Tyrrell Hatton 67 66 65 65
264 - Tommy Fleetwood 64 68 63 69, Danny Willett 67 70 64 63
265 - Jamie Donaldson 65 64 69 67
266 - Richie Ramsay 62 66 70 68
267 - Romain Wattel (FRA) 68 69 65 65, Gareth Maybin 64 67 69 67, Lee Slattery 68 68 65 66
268 - Richard Green (AUS) 71 64 67 66
269 - Brett Rumford (AUS) 69 65 71 64, Marc Warren 69 63 71 66, Shane Lowry 66 65 68 70, Nicolas Colsaerts (BEL) 68 67 69 65, Bernd Wiesberger (AUT) 66 70 67 66, Edoardo Molinari (ITA) 62 70 68 69, Seve Benson 65 67 70 67, Anirban Lahiri (IND) 70 67 68 64
270 - Ricardo Gonzalez (ARG) 70 68 68 64, David Lynn 65 68 69 68, Jyoti Randhawa (IND) 72 65 65 68, Gregory Havret (FRA) 68 69 68 65
271 - Emiliano Grillo (ARG) 66 68 69 68, Adrien Saddier (FRA) 69 67 68 67, Peter Whiteford 68 65 70 68, James Morrison 66 69 67 69
Selected
272 - Victor Dubuisson (Fra) 65 67 68 72
273 - Peter Uihlein (USA) 72 67 65 69, Jason Knutzon (USA) 70 69 68 66
275 - Wade Ormsby (AUS) 67 67 70 71, Chapchai Nirat (THA) 66 70 73 66,
278 - Hennie Otto (RSA) 68 69 68 73
279 - Paul Lawrie 70 68 69 72
281 - Seuk-hyun Baek (KOR) 69 70 68 74, Padraig
Harrington 66 71 72 72
283 - Rahil Gangjee (IND) 72 67 71 73, Prom
Meesawat (THA) 66 73 71 73
284 - Justin Walters (RSA) 70 68 73 73
288 - Jin Jeong (KOR) 71 68 77 72