American BioMed Inc. Announces Second- Quarter and Six-Month Financial Results.

THE WOODLANDS, Texas--(BW HealthWire)--Aug. 17, 1998--American BioMed Inc. (OTC BB:ABMI) Monday announced second-quarter and six- month financial results for the period ended June 30, 1998.

Revenues for the quarter were $94,316, compared with $135,982 reported in the same period last year.

The net loss for the quarter was $873,047, or 3 cents per share, based on a weighted average number of common shares outstanding of 25,611,544, compared with a net loss of $558,911, or 4 cents per share, based on a weighted average number of common shares outstanding of 14,565,103 for the same period last year.

Revenues for the first six months ended June 30, 1998, increased 1.2 percent to $256,400, compared with the $253,329 reported in the same period last year.

Net loss for the six months was $1,431,881, or 6 cents per share, based on a weighted average number of shares outstanding of 22,541,297, vs. a net loss of $1,203,204, or 8 cents per share, based on a weighted average number of common shares outstanding of 14,278,688 for the six-month period of 1997.

According to management, revenue results in the second quarter were adversely impacted because of delays in the company receiving the CE Mark, which is now required for all medical devices entering the European Union after mid-June 1998.

Marshall Kerr, American BioMed's vice president of sales and marketing, stated: "Many of our distributors have been hampered in their promotional efforts because of CE Mark regulations. Until we receive CE Mark, many of our international distributors are not able to promote American BioMed products.

"Most of our European distributors are eagerly awaiting the shipment of orders that were placed in the second quarter, and have indicated increased revenues after we receive CE Mark.

"In addition, the awarding of CE Mark allows us to move forward on one of our primary company goals, which is the establishment of a world-class distribution network. This network will not only provide distribution for our current product offerings, but more importantly will provide the launching pad for new products to be introduced in the next year."

American BioMed has added more than 30 new distributors in the previous 12 months.

The company indicated that it has substantial back orders from its European distributors as well as orders being withheld, pending receipt of the CE Mark.

Steven B. Rash, president and chief executive officer, said: "We have been advised by our notified body that the company has been recommended for CE Mark certification, and we anticipate receiving the CE Mark certification within the next two weeks. All pending orders will be shipped upon receipt of the CE Mark."

In addition, management stated that delays in shipping the new Ahn Thrombectomy catheter, which was introduced in the second quarter, together with OEM contract orders that were shifted from the second quarter to the third quarter, had also impacted revenue results.

Rash continued, "We are very optimistic about our upcoming third-quarter performance, which we feel will increase substantially compared to the prior year's third quarter."

American BioMed utilizes state-of-the-art technology to develop, manufacture and market minimally invasive medical devices for the treatment of cardiovascular disease.

The company's products include 100-percent-silicone-based catheters, through its Cathlab subsidiary; the Evert-O-Cath, a toposcopic catheter for site-specific drug delivery and fluid removal; the OmniCath, an atherectomy catheter designed to remove atherosclerotic plaque from obstructed blood vessels throughout the body; and the OmniFilter, which is used to prevent blood clots from reaching various organs of the body.

The company has more than 25 patents and 11 Food and Drug Administration approvals covering its product portfolio, and addresses an annual worldwide market estimated to be in excess of $10 billion.

"Safe-harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in the release are forward-looking statements that involve risks and uncertainties, including but not limited to the results of research and development efforts, the results of preclinical and clinical testing, the effect of regulation by the FDA and other agencies, the impact of competitive products, product development, commercialization and technological difficulties, the results of financing efforts, the effect of the company's accounting policies, and other risks detailed in the company's Securities and Exchange Commission filings. -0-

                 AMERICAN BIOMED INC. AND SUBSIDIARY
                   (A development-stage enterprise)
                 Consolidated Statement of Operations
                             (Unaudited)

                            Three months ended       Six months ended
                                 June 30,                June 30,
                             1998        1997        1998        1997

Revenues, net           $  94,316   $ 135,982   $ 256,400   $ 253,329
Cost of sales             (74,357)    (35,284)   (226,975)   (160,018)
Gross profit (loss)        19,959     100,698      29,425      93,311
Operating expenses:
 Selling, general and
  administrative         (584,441)   (426,907) (1,068,261)   (894,957)
 Research and
  development            (131,908)   (228,674)   (223,217)   (374,962)
                         (716,349)   (655,581) (1,291,478) (1,269,919)
 Loss from operations    (696,390)   (554,883) (1,262,053) (1,176,608)
Other income (expense):
 Interest income            1,346      15,331       1,941      20,372
 Interest expense         (33,608)    (34,302)    (65,895)    (76,911)
 Other income (expense)   (41,250)     14,943      (2,729)     29,943
 Other income (expense),
  net                     (73,512)     (4,028)    (66,683)    (26,596)
 Net loss                (769,902)   (558,911) (1,328,736) (1,203,204)
Less preferred-stock
 dividends               (103,145)               (103,145)
Net loss attributable to
 common shareholders    $(873,047)  $(558,911)$(1,431,881)$(1,203,204)
Net loss per common
 share                  $   (0.03)  $   (0.04)$     (0.06)$     (0.08)
Weighted average number
 of common shares
 outstanding           25,611,544  14,565,103  22,541,297  14,278,688


                       Select Balance Sheet Data

                                                   March 31,   Dec. 31,
                                                     1998        1997
Assets:
 Current assets:
  Cash and cash equivalents                    $   79,608  $   82,789
  Total current assets                            948,613   1,048,899
 Total assets                                  $1,772,167  $1,945,056

Liabilities and stockholders' equity:
 Total current liabilities                     $1,750,251  $1,676,050
 Long-term debt, net of current maturities         51,323      71,855
 Total stockholders' equity                      (103,052)     97,151
 Total liabilities and stockholders' equity    $1,772,167  $1,945,056

CONTACT: American BioMed Inc., The Woodlands

Steven B. Rash, 281/367-3895

or

Coffin Communications, Sherman Oaks, Calif.

Bill Coffin, 818/789-0100 (investors)

or

Coffin-Mottola Communications, Irvine, Calif.

Christi Mottola, 714/851-1109 (media)