American Bio Medica Signs Major Deal With Northwest Drug Testing.

Business Editors

KINDERHOOK, N.Y.--(BUSINESS WIRE)--May 21, 2001

Companies Reach Agreement to Offer Rapid Drug Screen to NDT 

Customers

American Bio Medica Corporation (NASDAQ: ABMC) today announced it has signed an agreement to provide Rapid Drug Screen(TM) assays to Northwest Drug Testing (NDT), a division of NWT Inc., and one of the world's foremost leaders in drugs of abuse and adulterant testing.

The six-figure deal covers purchases of ABMC products within the next year, with options for further increases in the following years.

Rapid Drug Screen will be offered to NDT customers to complement the Salt Lake City-based laboratory's extensive array of drugs of abuse testing services. With Rapid Drug Screen, NDT can offer on-site drug testing resources that feature ease of sample collection and testing with quick turnaround of results. For positive on-site test results NDT can provide necessary confirmation testing services through its SAMHSA-certified laboratory.

According to Michael Feldman, Ph.D., General Manager and Sr Vice President of NDT, the agreement further positions NDT as the preeminent drug testing resource to serve its customer base.

"We are committed to offering our customers the best drug testing resources to satisfy the needs of a variety of applications and programs," said Feldman. "And we believe the Rapid Drug Screen can offer value, and is one of the best performing on-site tests available. We are pleased to have an agreement with ABMC."

ABMC Chief Executive Officer Robert L. Aromando, Jr., said the deal represented an important benchmark in the company's three-year business plan. He credited ABMC Director of Business Development Anne Becknell, who joined ABMC only several weeks ago, for developing the relationship with NDT.

"We are determined to work with industry leaders, and are very pleased to have an opportunity to provide Rapid Drug Screen through NDT," said Aromando. "Clearly, this deal is an early benefit for having brought some of the drug testing industry's most knowledgeable professionals within our organization."

About Northwest Drug Testing

Northwest Drug Testing is a division of NWT Inc., established in 1981. Thousands of clients throughout the United States, Canada, South America, and Japan send specimens to NDT's central facility via the laboratory's courier network and the Salt Lake City International Airport hub. Specimens are processed 24 hours per day, 365 days per year, to facilitate timely reporting of test results. Results are reported through an industry leading array of electronic reporting methods, including Internet-based solutions such as ResultsNOW!(R). For more information, visit www.nwtinc.com or call 1-800-322-3361.

About American Bio Medica Corporation

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, physicians, corrections, clinical and educational markets. ABMC's Drug Detector(TM) identifies minute traces of illegal drugs on surfaces, while the company's Rapid Drug Screen tests individuals and is proven to correlate greater than 99% 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.