American Bio Medica Prepares Aggressive Marketing Strategy for Drug Detector; Sales through Retail OTC Channels, New E-commerce Site and Distributor Network.

Business Editors & Health Reporters

KINDERHOOK, N.Y.--(BUSINESS WIRE)--March 3, 2000

American Bio Medica Corp. (NASDAQ: ABMC) today reported that it is preparing a multi-faceted marketing strategy for sales of the Drug Detector(TM) on-site test, for which the Company acquired exclusive North and South American marketing and distribution rights last January.

"Initial response to our news regarding Drug Detector was very encouraging. We were immediately contacted by a number of our existing distributors for the Rapid Drug Screen test that are eager to begin marketing the Drug Detector," stated ABMC Chairman and CEO Stan Cipkowski. "We also received numerous leads from individuals and organizations interested in using the product."

ABMC explained that it is rolling out an aggressive marketing strategy for the Drug Detector in order to capitalize upon several high volume sales channels.

Retail OTC Channels

American Bio Medica has contracted with a firm specializing in sales of diagnostic products to retail channels throughout the United States. The Company has retained this distribution organization for sales of the Drug Detector and also for future sales of the Rapid Drug Screen(TM), for which ABMC expects to file an application with the FDA later this month for over-the-counter marketing approval. American Bio Medica is also currently evaluating several marketing partners for distribution to retail over-the-counter channels in South America.

The Company reported that the Drug Detector tests are expected to be on retail shelves across the country within 60 to 90 days. ABMC explained that it is scheduled to receive the first shipment of product from Mistral Security, Inc., manufacturer of the Drug Detector, in approximately 60 days. All packaging and marketing operations for the product for OTC sales are already prepared at American Bio Medica.

E-commerce Channels

ABMC has established www.drug-detector.com for Internet sales of the Drug Detector. The Company is developing marketing strategies to drive consumer traffic to the www.drug-detector.com site through online and traditional advertising.

The Drug Detector website is part of a comprehensive Internet marketing initiative that the Company is developing. This initiative is being designed to expand American Bio Medica's direct sales capabilities for its full product line of on-sites substance abuse tests and to provide further customer support services.

Distributor Channels

In addition to the small aerosol canister of the Drug Detector being packaged for OTC and Internet sales, ABMC will also market a larger size canister through its existing distribution network for workplace, schools and corrections markets. This product version will be ready for distribution within 4 to 8 weeks after the initial Drug Detector tests are introduced to the OTC and Internet channels.

The majority of the Company's existing distributors of the Rapid Drug Screen in North and South America have already contacted American Bio Medica to express interest in also marketing the Drug Detector as soon as the product is ready for sales. The Company will also pursue partnerships with additional distributors for the Rapid Drug Screen and the Drug Detector in those territories that are not currently covered by the firm's existing distribution network.

About American Bio Medica

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.

The Company's long-term goals call for further expansion of its product base with on-site tests that screen for a variety of substances. ABMC may develop some of these new tests in-house since the product platform utilized in the Rapid Drug Screen, which utilizes monoclonal antibodies, can be applied to test urine, blood, serum or saliva samples for multiple specific analyte targets. American Bio Medica also continues to evaluate the profit opportunities presented by obtaining new products through joint ventures or acquisitions.

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.