American Bio Medica Wins Mexican Army Contract for Third Consecutive Year.

KINDERHOOK, N.Y. -- American Bio Medica Corporation (NASDAQ: ABMC) today announced that for the third consecutive year they have received a contract from the Mexican Army to supply them with the Company's drugs of abuse testing products through a sub-distributor of ABMC's authorized distributor, Devor Diagnostics SA de CV.

To obtain this contract, the Company's Rapid Drug Screen(R) products were evaluated against a number of competitive products. The Rapid Drug Screen was the only test found to be accurate in the testing of all three drugs for which the Army tests. ABMC has already begun shipping product under this contract, the first order of which was for 52,000 units.

Stan Cipkowski, ABMC Chief Executive Officer stated, "We believe the fact that we have won this contract for three consecutive years speaks volumes for both the quality of our products and the service of our distributor Devor Diagnostics. Because this is a federal contract, other federal agencies can order under it; in fact, the Mexican Federal Police have already placed an order of 15,000 units as a result of this contract. It is because of contracts like this that we have seen increased sales in Mexico to date."

Jose Oruna of ABMC's distributor Devor Diagnostics stated, "I am pleased that the Army continues to have confidence in ABMC's products. It is great to know that the Army tested and re-tested the Rapid Drug Screen products and found them to be more accurate than any of the other tests submitted. This builds confidence in the ABMC products throughout Mexico."

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation is a biotechnology company that develops, manufactures and markets accurate, cost-effective immunoassay diagnostic test kits, including some of the world's most effective point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC's Rapid Drug Screen, Rapid One(R), Rapid TEC(R), RDS(R) InCup(R) and Rapid TOX(TM) products test for the presence or absence of drugs of abuse in urine, while OralStat(R) tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader(TM) is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.

This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, the following: continued acceptance of the Company's products, increased levels of competition in our industry, the acceptance of new products, inherent risks associated with product development and intellectual property rights, the Company's dependence on key personnel, third party sales and suppliers. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled "Risk Factors" in the Company's annual report on Form 10-KSB for the fiscal year ended December 31, 2005, and quarterly reports on Form 10-QSB on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.