American Bio Medica Expands Product Line With Patented Drug Detector; Provides for Immediate Sales to Over the Counter Market.

Business/Medical Editors

KINDERHOOK, NY--(BUSINESS WIRE)--Jan. 24, 2000

American Bio Medica Corp. (NASDAQ: ABMC) today announced that it has acquired the exclusive rights for distribution and marketing of DRUG DETECTOR(TM) in North and South America. A patented on-site drug detection system, DRUG DETECTOR tests for the presence or absence of residue from marijuana, cocaine, heroin or methamphetamines without the need for urine, hair or saliva samples.

&uot;We are pleased to announce this milestone event that substantially increases the strength of our drug testing product line,&uot; stated ABMC Vice President of Sales &Marketing Jay Bendis. &uot;The revolutionary DRUG DETECTOR provides parents, employers, schools and corrections personnel with immediate information regarding potential substance abuse.&uot;

&uot;This development expedites our entry into the exciting and expanding over-the-counter market for drug abuse testing products since no FDA clearance is required for the DRUG DETECTOR,&uot; Bendis added. &uot;We hope to have this product line on shelves in retail stores across the country within 90 days. We expect to formally submit the Rapid Drug Screen in March for OTC approval from the FDA; very soon after that, look for the Rapid Drug Screen to be on the shelf alongside the DRUG DETECTOR.&uot;

The Company said that, in this instance, it chose to diversify its product line through a strategic alliance since this method enables ABMC to benefit from immediate sales increases through its existing distribution network. This method also enables American Bio Medica to circumvent the significant production and R& costs that would be required through product acquisition or in-house development.

As to the cost of sales for DRUG DETECTOR, Bendis noted that new distribution channels will be required for the OTC market segment - although these can also be leveraged once FDA approval is received for OTC sales of the Rapid Drug Screen. He also said that relatively minor investments in packaging and assembly personnel might be required to support DRUG DETECTOR sales in the future.

The Product

Within ten seconds, DRUG DETECTOR provides very accurate results utilizing a quick and simple testing process. The product comes with a special pad and aerosol spray, which are utilized to perform the test. The pad is used to wipe a surface and then the spray is applied to the pad; a specific color change on the pad indicates the presence of the drug residue.

The person being tested with DRUG DETECTOR may or may not be told of the test and does not have to be present at the time of the test. This is of great benefit in avoiding confrontation with a suspected drug user. Since no urine, hair or saliva is required, the test is much easier to conduct since the cooperation of the person being tested is not required. For instance, DRUG DETECTOR is ideal for use by parents who are concerned about the welfare of their child, are suspicious of substance abuse and are hesitant to create a major argument with their child without just cause.

The Marketing

ABMC acquired distribution rights for Drug Detector from Mistral Security, Inc., which designs, develops, and manufactures security and law enforcement equipment and products. Mistral has been involved during the last ten years in the development and management of unique defense and law enforcement technologies and systems. &uot;Mistral is looking forward to increasing the cooperation with ABMC, which will allow the distribution of a unique and simple tool to fight drug abuse,&uot; stated Mistral President Eyal Banai. &uot;This alliance also allows Mistral to free resources for the continuing R& efforts necessary for our state-of-the-art detection technology&uot;.

The agreement with Mistral allows ABMC to sell Drug Detector in its territories under the American Bio Medica name. All product components will be manufactured by Mistral and shipped to ABMC, which will package, distribute and market the tests. The Company will sell two types of packages. One small aerosol canister will be packaged for sale directly to retail sectors while products for workplace, schools and corrections markets will include a larger size canister and will be distributed through ABMC's existing distribution network.

The Company

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

Forward-looking statements in this release are made pursuant to the &uot;safe harbor&uot; 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.