ABMC Signs Purchase Agreement.

KINDERHOOK, N.Y. -- American Bio Medica Corporation (NASDAQ:ABMC) announced today that they have entered into a Purchase Agreement with one of the world's largest clinical laboratories. The client has requested its name not be disclosed at this time however; ABMC describes the company as an S&P 500 listed company that performs millions of drugs of abuse tests annually. The laboratory will purchase ABMC's point of collection drugs of abuse testing devices for use at locations strategically located throughout the United States.

ABMC Chief Executive Officer Stan Cipkowski stated, "We are extremely pleased to be a supply partner to one of the largest testing laboratories in the United States. This new partnership will have a huge impact on our sales and earnings in 2007 with estimated sales in excess of $3 million. We began shipping product to this customer in Q4 2006 and we expect to be releasing more information on this new partnership in the very near future."

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation is a biotechnology company that develops, manufactures and markets accurate, cost-effective immunoassay diagnostic test kits, including some of the world's most effective point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC's Rapid Drug Screen[R], Rapid One[R], Rapid TEC[R], RDS[R] InCup[R] and Rapid TOX[TM] products test for the presence or absence of drugs of abuse in urine, while OralStat[R] tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader[R] is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.

This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, the following: continued acceptance of the Company's products, increased levels of competition in our industry, the acceptance of new products, inherent risks associated with product development and intellectual property rights, the Company's dependence on key personnel, third party sales and suppliers. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled "Risk Factors" in the Company's annual report on Form 10-KSB for the fiscal year ended December 31, 2005, and quarterly reports on Form 10-QSB on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.