American Bio Medica's New Distributor Targets Corporate and Government Drug Free Workplace Programs in Colombia.

HUDSON, N.Y.--(BW HealthWire)--Nov. 5, 1998--American Bio Medica Corporation (NASDAQ:ABMC) today announced that it has entered into a distribution agreement with SM Health Services, Inc. to market the ABMC Rapid Drug Screen(tm) in Colombia, specifically to corporate and government drug free workplace programs. SM Health Services has already received its first order.

The companies reported that the Rapid Drug Screen will not only be the first on-site drug test available in Colombia, but will also be the first drug test readily available in the country. SM Health Services explained that, until now, corporate and government drug free workplace programs have been shipping samples out of Colombia for evaluation.

"When we approach companies that have been sending samples abroad in order to determine if their employees are using illegal drugs, the response is phenomenal," explained Sergio Madrid, co-founder and president of SM Health Services. "We are offering these companies unheard of advantages not only in cost and ease of use, but also in turnaround time: under five minutes for easy and accurate results at a fraction of what they are currently paying!

"Given these options, we are finding a great deal of initial interest from companies and government offices that already have costly drug testing programs in place," continued Madrid. "These are organizations so committed to a drug free workplace that they are willing to bear the extraordinary costs of shipping samples abroad to foreign laboratories. When you also begin to consider all those that are interested in such drug testing initiatives but turned off by the cost, we believe that the Rapid Drug Screen has the real potential to significantly accelerate the acceptance of drug testing in Colombia."

SM Health Services, Inc., based in Medellin, Colombia, is focused on sales of ABMC's on-site drug test to workplace and government organizations in Colombia.

American Bio Medica Corporation develops, manufactures, and markets inexpensive, accurate, on-site drugs of abuse diagnostic kits and support services worldwide. The Company's global distributors target the workplace, clinical, rehabilitation, physicians, corrections, and educational markets. ABMC's Rapid Drug Screen is proven to correlate 100% with the standard laboratory screening test.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.