American BioMed Inc. in discussions with five potential buyers/partners.

THE WOODLANDS, Texas--(BUSINESS WIRE)--Dec. 5, 1996--American BioMed Inc. (NASDAQ OTC BB:ABMI) Thursday announced that it has now signed Confidentiality and Non-Disclosure Agreements with four U.S. and one International medical device companies.

Of the four U.S. Suitors, the largest has a market capitalization of $10.1 billion, the second $1.5 billion, the next is a $650 million division of a private company, and the smallest $217 million. The International Suitor is a $560 million division of a major European multi-national corporation capitalized at over $5 billion.

Steven B. Rash, the company's president and CEO, stated: "Initiation of these discussions are a direct result of the company positioning itself to further its strategic plan. Although we are optimistic about the outcome of these discussions, there can be no assurance that a complete company sale or Strategic Alliance with any of these Suitors will be consummated."

Rash further stated, "Each Suitor is at a different stage; all Suitors have formed teams to evaluate ABMI's technology, with the most advanced Suitor having successfully completed a Patent Search."

Valuemetrics, an independent valuation firm, has assigned a median valuation of $56 million on four of the company's 25 technologies, with a high end valuation of $96 million. A Suitor could well justify a higher value based on the acquisition of the entire company, or on the strategic value that ABMI would be to them.

American BioMed Inc. utilizes state of the art technology to develop, manufacture and market minimally invasive medical, surgical and diagnostic devices which deliver unique advantages through advanced science. Over 25 patents cover its technologies competing in an industry with combined markets estimated at over $10 billion annually. The devices include but are not limited to the OmniCath(r) atherectomy catheter, as well as the company's nine patented FDA approved unique all-silicone balloon catheters. These consist of thermodilution, embolectomy and bi-lumen irrigation, urinary bladder and angioscopy catheters. The OmniStent(tm) and accompanying stent technology is used to support diseased blood vessels. Other devices such as the company's drug delivery catheters, guidewire microfilter and minimally invasive spinal instruments are also under development. http://www.americanbiomed.com/ -0-

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CONTACT: Thomas E. Waite & Associates Inc.

407/324-1606, fax [phone]

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