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American Bio Medica Begins Shipment of its Rapid Drug Screen Kit for Drugs of Abuse

Increased Profitablity Anticipated from Consolidated Production

ANCRAMDALE, N.Y., Nov. 26 /PRNewswire/ -- American Bio Medica Corporation (OTC Bulletin Board: ABMC) announced today that it has begun shipping the Rapid Drug Screen Kit from its new production facility at Columbia Advocacy and Resource Centers, Inc. (COARC), an FDA registered contract manufacturer located in Mellenville, New York.

ABMC had previously contracted several facilities to manufacture, assemble, and ship the Rapid Drug Screen Kit to its customers. The COARC facility assembled the components of the testing card and the kit's packaging for shipment exclusively, while two other contract manufacturers were producing the remaining components.

Today's announcement represents the consolidation of all elements of the kit's production at the COARC facility. All necessary equipment is already in place and the current manufacturing schedule is set for COARC to increase their production up to 20,000 units per week by December 31, 1996.

"By centralizing all production at the COARC location, our Rapid Drug Screen becomes a more profitable item for us," stated American Bio Medica President, Stan Cipkowski. "We made considerable investments in new machinery, parts inventory, manufacturing, packaging, and shipping equipment. In order to meet growing demand for the Rapid Drug Screen Kit, we are expanding production capabilities at COARC to reach a maximum of 600,000 units per month, and continue to explore outside contractor availability to meet future production needs."

ABMC will maintain production agreements with its reagent supplier and another contract manufacturer whereby the two facilities will produce a total of 10,000 units per week. This arrangement will ensure continued production as scheduled while the COARC facility expands its production capabilities. In addition, American Bio Medica intends to continue its relationships with the two manufacturers so that further expansion of production will be facilitated when future demand grows beyond 600,000 units per month."

Cipkowski elaborated, "Based on orders and indications of orders that we currently have, the production level of 20,000 units per week is needed. Once COARC has the established ability to produce all test components, it will be easy to have the facility further increase production as we receive additional orders."

"We appreciate the opportunity to be working with American Bio Medica on a project that appears to have great growth potential," commented Doug Casterlin, General Manager at Columbia Advocacy and Resource Centers. "This opportunity will enhance our ability to market COARC's contract manufacturing services by demonstrating our involvement with such a high-quality product and our continued success in meeting the increasing demands and specifications involved."

COARC, located twenty miles from ABMC headquarters in Ancramdale, New York, is a federal and state licensed not-for-profit agency where non-disabled employees work side by side with developmentally disabled employees to manufacture a wide variety of products and services. COARC provides a workforce of several hundred and is currently producing products for companies such as Pfizer, Johnson & Johnson, and Sherwood Medical.

American Bio Medica Corporation is an "early stage" biomedical company which develops, manufactures and markets rapid, low-cost and easy-to-use diagnostic kits for abused substance testing and develops other biomedical technologies and devices. ABMC's drug screening test strip employs technology similar to that used commonly in pregnancy test kits. In field tests conducted earlier this year, the drug detection strip demonstrated 100% correlation with the results produced by the SYVA EMIT II and GCMS, both standard laboratory tests.

For further information and updates, visit http://www.otcfn.com

SOURCE American Bio Medica Corporation
 -0- 11/26/96


/CONTACT: Robert M. Joyce of OTC Financial Network, 888-433-3077, or Stan Cipkowski, President of American Bio Medica, 518-329-4485/

(ABMC)

CO: American Bio Medica Corporation; COARC ST: New York IN: MTC SU: PDT

LZ-JL -- NETU018 -- 4205 11/26/96 08:51 EST http://www.prnewswire.com
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Date:Nov 26, 1996
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