ABMC Reports First Quarter 2009 Results

Net sales for the first quarter of 2009 were $2,255,000 compared to net sales of $3,299,000 in the first quarter of 2008, representing a decrease of $1,044,000, or 31.6%. Operating loss for the first quarter of 2009 was $204,000 compared to an operating loss of $162,000 in the first quarter of 2008. The Company reported a net loss of $252,000 in the first quarter of 2009 compared to a net loss of $199,000 in the first quarter of 2008.

ABMC Chief Executive Officer, Stan Cipkowski, stated, "Our story hasn't changed much since March when we reported results for our 2008 fiscal year. We continue to experience decreased sales in our core markets. Workplace drug testing continues to be affected by historically high unemployment rates in the United States, and government sales continue to be affected by budget cuts and price pressures from foreign manufacturers."

Cipkowski added, "We are encouraged by recent news that employers cut fewer jobs in April, which could indicate that the worst of the recession has passed; we hope this means we will start to see sales in the workplace market begin to rebound sometime in 2009. We have also been making progress in garnering new accounts to make up for sales declines with our current customers. At the same time, we have started selling a new version of our Rapid TOX Cup product in the government market with some early success stories. It is our hope that we can stabilize sales in our core markets while keeping costs in line with sales levels; if we can do that, we can get through this economic crisis."

Conference Call

The Company will host a conference call and webcast to discuss the First Quarter 2009 results on Thursday, May 14, 2009 at 11:00 a.m (EST). Investors and interested parties are invited to participate. The call will be broadcast live over the internet at www.abmc.com/investor/. The webcast will be listen-only mode. Listeners are requested to be online at least fifteen minutes early to register, as well as to download and install any complimentary audio software that might be required. To ask questions, you are invited to participate by phone. Within North America, dial 800-533-7619 and internationally dial 785-830-1923. The call will be available for replay at www.abmc.com/investor/ for 30 days.

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(R), Rapid ONE(R), Rapid TEC(R), RDS(R) InCup(R), Rapid TOX(R) and Rapid TOX Cup(R) products test for the presence or absence of drugs of abuse in urine, while OralStat(R) and Rapid STAT(TM) tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader(R) 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, regulatory approvals 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-K for the fiscal year ended December 31, 2008, and quarterly reports on Form 10-Q 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.

AMERICAN BIO MEDICA CORPORATION
Statements of Operations
(in thousands, except loss per share)
(unaudited)
                                                          For the three        For the three
                                                          months ended         months ended
                                                          March 31, 2009       March 31, 2008
Net sales                                            $    2,255           $    3,299
Cost of goods sold                                        1,336                1,872
Gross profit                                              919                  1,427
Operating expenses:
Research and development                                  101                  138
Selling and marketing                                     498                  768
General and administrative                                524                  683
Total operating expenses                                  1,123                1,589
Operating loss                                            (204       )         (162       )
Other expense, net                                        (48        )         (37        )
Loss before tax                                           (252       )         (199       )
Income tax
Net loss after tax                                   $    (252       )    $    (199       )
Basic & diluted loss per common share                $    (0.01      )    $    (0.01      )
Basic & diluted weighted average shares outstanding       21,744,768           21,744,768

American Bio Medica Corporation
Balance Sheets
(in thousands)
                                                                        March 31,        December 31,
                                                                        2009             2008
                                                                        (unaudited)
ASSETS
Current Assets
Cash and equivalents                                                $   592          $   201
Accounts receivable-net of allowance for doubtful accounts
of $105,000 at both March 31, 2009 and December 31, 2008                1,391            1,161
Inventory, net of reserve for slow moving and obsolete
inventory of $308,000 at both March 31, 2009 and December 31, 2008      5,021            5,552
Prepaid expenses and other current assets                               107              97
Total current assets                                                    7,111            7,011
Property, plant and equipment, net                                      1,897            1,961
Debt issuance costs                                                     109              117
Other assets                                                            44               47
Total assets                                                        $   9,161        $   9,136
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                                                    $   1,540        $   1,568
Accrued expenses and other current liabilities                          661              544
Wages payable                                                           263              230
Line of credit                                                          621              431
Current portion of long-term debt and unearned grant                    1,077            1,108
Total current liabilities                                               4,162            3,881
Other long-term liabilities                                             204              207
Long-term debt                                                          759              760
Unearned grant                                                          30               30
Total liabilities                                                       5,155            4,878
Stockholders' Equity:
Common stock                                                            217              217
Additional paid-in capital                                              19,279           19,279
Accumulated deficit                                                     (15,490 )        (15,238 )
Total stockholders' equity                                              4,006            4,258
Total liabilities and stockholders' equity                          $   9,161        $   9,136

SOURCE: American Bio Medica Corporation

American Bio Medica Corporation 
Stan Cipkowski, 800-227-1243, Ext 106 
Chief Executive Officer