American Bio Medica Announces Second Quarter 2009 Results

Net sales for the second quarter of 2009 were $2,808,000, compared to $3,465,000 for the second quarter of 2008, representing a decrease of $657,000, or 19%. For the six months ended June 30, 2009, net sales were $5,063,000, compared to $6,764,000 for the six months ended June 30, 2008, representing a decrease of $1,701,000, or 25%.

The Company reported an operating loss of $170,000 in the second quarter of 2009, compared to an operating loss of $34,000 in the second quarter of 2008. Net loss for the second quarter of 2009 was $219,000, or $(0.01) per share, compared to a net loss of $64,000, or $0.00 per share in the second quarter of 2008. Operating loss for the first half of 2009 was $374,000, compared to an operating loss of $196,000 in the first half of 2008. Net loss for the first half of 2009 was $471,000, or $(0.02) per share, compared to a net loss of $264,000, or $(0.01) per share in the first half of 2008.

ABMC Chief Executive Officer Stan Cipkowski stated, "Second quarter sales turned out a little better than we had expected. This was primarily due to our new Rapid TOX Cup II product and renewed efforts in the criminal justice market, along with a bit of new life in the workplace market. Though expenses were on target based on the massive cuts we made over the past nine months, manufacturing inefficiencies related to reduced demand continue to negatively impact gross margin and cause expected losses. Although it is still too soon to know what the second half of 2009 will bring, I am hopeful that the increasing trend in sales will continue."

Conference Call

The Company will host a conference call and webcast to discuss the 2009 Second Quarter results on Thursday, August 13, 2009 at 11:00 a.m. (EST). Investors and interested parties are invited to participate. The call will be broadcast live, in listen-only mode, over the internet at www.abmc.com/investor/. Listeners are requested to be online at least 15 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 in the event by phone by dialing 877-737-1669, 10-15 minutes prior to the start time (to allow time for registration) and reference the passcode ABMC. International callers should dial 302-709-8008 and use the same passcode. The call will be available for replay at www.abmc.com/investor/ for 30 days.

For more information on American Bio Medica Corporation or its 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, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, intellectual property rights, our dependence on key personnel, third party sales and suppliers, our non-compliance with the continued listing requirements of the Nasdaq Stock Market, our history of recurring net losses and our ability to continue as a going concern. 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, quarterly reports on Form 10-Q, and other periodic reports 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 earnings per share)
(unaudited)
                                                        For the                For the                For the              For the
                                                        three months ended     three months ended     six months ended     six months ended
                                                        June 30, 2009          June 30, 2008          June 30, 2009        June 30, 2008
Net sales                                            $  2,808               $  3,465               $  5,063             $  6,764
Cost of goods sold                                      1,652                  1,847                  2,988                3,719
Gross profit                                            1,156                  1,618                  2,075                3,045
Operating expenses:
Research and development                                106                    178                    208                  316
Sales and marketing                                     572                    716                    1,070                1,484
General and administrative                              648                    758                    1,171                1,441
Total operating expenses                                1,326                  1,652                  2,449                3,241
Operating loss                                          (170       )           (34        )           (374       )         (196       )
Other expense                                           (49        )           (30        )           (97        )         (68        )
Loss before tax                                         (219       )           (64        )           (471       )         (264       )
Income tax
Net loss after tax                                   $  (219       )        $  (64        )        $  (471       )      $  (264       )
Basic & diluted loss per common share                $  (0.01      )        $  0.00                $  (0.02      )      $  (0.01      )
Weighted average shares outstanding-basic & diluted     21,744,768             21,744,768             21,744,768           21,744,768

American Bio Medica Corporation
Balance Sheets
(in thousands)
                                                                       June 30,         December 31,
                                                                       2009             2008
                                                                       (Unaudited)
Assets
Current assets:
Cash and equivalents                                               $   587          $   201
Accounts receivable, net of allowance of $105,000 at both              1,453            1,161
June 30, 2009 and December 31, 2008
Inventory-net of reserve for slow moving and obsolete                  4,461            5,552
inventory of $308,000 at both June 30, 2009 and December 31, 2008
Prepaid expenses and other current assets                              122              97
Total current assets                                                   6,623            7,011
Property, plant and equipment - net                                    1,813            1,961
Debt issuance costs                                                    100              117
Other assets                                                           51               47
Total assets                                                       $   8,587        $   9,136
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable                                                   $   1,389        $   1,568
Accrued expenses and other current liabilities                         484              544
Wages payable                                                          319              230
Line of credit                                                         575              431
Current portion of long term debt                                      1,036            1,098
Current portion of unearned grant                                      10               10
Total current liabilities                                              3,813            3,881
Other long-term liabilities                                            200              207
Long term debt                                                         758              760
Unearned grant                                                         30               30
Total liabilities                                                      4,801            4,878
COMMITMENT AND CONTINGENCIES
Stockholders' equity:
Common stock                                                           217              217
Additional paid-in capital                                             19,279           19,279
Accumulated deficit                                                    (15,710 )        (15,238 )
Total stockholders' equity                                             3,786            4,258
Total liabilities and stockholders' equity                         $   8,587        $   9,136

SOURCE: American Bio Medica Corporation

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