American Bio Medica Posts 63% Sales Increase in the First Quarter Fiscal 2000 With Considerable Move Towards Profitability.

HUDSON, N.Y.--(BUSINESS WIRE)--Sept. 2, 1999--

American Bio Medica Corp. (NASDAQ: ABMC) today announced the unaudited results for the three months ended July 31, 1999.

Net income improved to $(27,000), or $(0.01) per share, for the first quarter fiscal 2000 as compared to $(276,000), or $(0.03) per share, for the comparable period last year on a 63% rise in sales to $2,127,000 for the three months ended July 31, 1999. The Company said the net loss improvement was primarily due to increased sales and a decrease in selling, general, and administrative expenditures.

"I am extremely pleased to announce our significant move towards profitability during the first quarter of this fiscal year," said Stan Cipkowski, chief executive officer and chairman of American Bio Medica. "As we continue to improve manufacturing and further reduce general and administrative expenses, which fell 37% this quarter as a percentage of sales, we should move closer towards profitability during the current fiscal year."

As of July 31, 1999, the Company had $2,296,000 in working capital, $4,302,000 in total assets, and total stockholders' equity of $2,902,000.

The Company said its primary short-term needs are to increase its manufacturing capabilities, decrease current inventory levels, and continue to support its research and development plans. ABMC presently intends to expend approximately $300,000 for the expansion and development of its manufacturing facilities as well as its marketing and general administrative programs. -0-

                        Condensed Balance Sheet

                       As of July 31, 1999       As of April 30, 1999
                       -------------------       --------------------
                              (Unaudited)                  (Audited)

ASSETS
Total current assets            $3,653,000                $3,802,000
Total assets                    $4,302,000                $4,435,000
LIABILITIES & STOCKHOLDERS' EQUITY
Total current liabilities       $1,357,000                $1,415,000
Total liabilities               $1,400,000                $1,462,000
Total stockholders' equity      $2,902,000                $2,973,000



                   Condensed Statement of Operations
                              (Unaudited)

                               For the Three            For the Three
                              Months Ended             Months Ended
                               July 31, 1999            July 31, 1998
Net sales                       $2,127,000                $1,308,000
Cost of goods sold              $1,082,000                  $514,000
Gross profit                    $1,045,000                  $794,000
Net income (loss)                 $(27,000)                $(276,000)
Basic and diluted net income
 (loss) per common share            $(0.01)                   $(0.03)
Weighted average shares outstanding
 - basic and diluted            14,875,190                14,291,462

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(TM) 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 report filed with the Securities and Exchange Commission