American Bio Medica Announces Third Quarter 2009 Results

Net sales for the third quarter of 2009 were $2,501,000, compared to
$3,604,000 for the third quarter of 2008, representing a decrease of
$1,103,000, or $30.6%. For the nine months ended September 30, 2009, net
sales were $7,563,000, compared to $10,368,000 for the nine months ended
September 30, 2008, representing a decrease of $2,805,000, or 27.1%.

ABMC Chief Executive Officer Stan Cipkowski stated, "After encouraging
sales in July and August, we had a disappointing September as a result
of delays or reductions in Fall and seasonal hiring by our customers, as
well as reductions in Federal and State spending for drug testing.
Despite reports over the last several months that the national recession
is turning a corner, we suspect that it will be some time before
significant economic growth occurs and even longer for employment rates
to return to so-called normal levels. Therefore, we will continue to
make efforts to control expenses and to increase manufacturing
efficiencies to reduce losses, as well as look for new market
applications for our immunoassay technology."

The Company reported an operating loss of $184,000 in the third quarter
of 2009, compared to operating income of $127,000 in the third quarter
of 2008. Net loss for the third quarter of 2009 was $241,000, or $(0.01)
per share, compared to net income of $86,000, or $0.00 per share, in the
third quarter of 2008. Operating loss for the nine months ended
September 30, 2009 was $558,000, compared to an operating loss of
$69,000 in the nine months ended September 30, 2008. Net loss for the
nine months ended September 30, 2009 was $712,000, or $(0.03) per share,
compared to a net loss of $177,000, or $(0.01) per share, for the nine
months ended September 30, 2008.

Conference Call

The Company will host a conference call and webcast to discuss the 2009
Third Quarter results on Friday, November 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 866-212-4491, 10-15 minutes
prior to the start time (to allow time for registration) and reference
the passcode ABMC. International callers should dial 416-800-1066 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, trading in our common shares
may be subject to "penny stock" rules, 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.

(Financial tables follow)

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     nine months ended     nine months ended
                                                       September 30, 2009     September 30, 2008     September 30, 2009    September 30, 2008
Net sales                                          $   2,501              $   3,604              $   7,563             $   10,368
Cost of goods sold                                     1,476                  2,104                  4,463                 5,822
Gross profit                                           1,025                  1,500                  3,100                 4,546
Operating expenses:
Research and development                               108                    128                    316                   445
Sales and marketing                                    517                    713                    1,587                 2,197
General and administrative                             584                    532                    1,755                 1,973
Total operating expenses                               1,209                  1,373                  3,658                 4,615
Operating income / (loss)                              (184       )           127                    (558       )          (69        )
Other expense                                          (57        )           (41        )           (154       )          (108       )
Loss before tax                                        (241       )           86                     (712       )          (177       )
Income tax
Net income / (loss)                                $   (241       )       $   86                 $   (712       )      $   (177       )
Basic & diluted income / (loss) per common share   $   (0.01      )       $   0.00               $   (0.03      )      $   (0.01      )
Weighted average shares outstanding- basic             21,744,768             21,744,768             21,744,768            21,744,768
Dilutive effect of stock options and warrants                                 16,954
Weighted average shares outstanding- fully diluted     21,744,768             21,761,722             21,744,768            21,744,768

American Bio Medica Corporation
Balance Sheets
(in thousands)
                                                                        September 30,      December 31,
                                                                        2009               2008
                                                                        (Unaudited)
Assets
Current assets:
Cash and equivalents                                               $    181           $    201
Accounts receivable, net of allowance of $105,000 at September 30,      996                1,161
2009 and December 31, 2008
Inventory-net of reserve for slow moving and obsolete inventory of      4,404              5,552
$308,000 at September 30, 2009 and December 31, 2008
Prepaid expenses and other assets                                       145                97
Total current assets                                                    5,726              7,011
Property, plant and equipment - net                                     1,732              1,961
Debt issuance costs                                                     130                117
Other assets                                                            31                 47
Total assets                                                       $    7,619         $    9,136
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                                                   $    813           $    1,568
Accrued expenses and other liabilities                                  293                544
Wages payable                                                           269                230
Line of credit                                                          580                431
Current portion of long term debt                                       1,005              1,098
Current portion of unearned grant                                       10                 10
Total current liabilities                                               2,970              3,881
Other liabilities                                                       184                207
Long term debt                                                          757                760
Related party note                                                      124
Unearned grant                                                          30                 30
Total liabilities                                                       4,065              4,878
COMMITMENT AND CONTINGENCIES
Stockholders' equity:
Common stock                                                            217                217
Additional paid-in capital                                              19,287             19,279
Accumulated deficit                                                     (15,950 )          (15,238 )
Total stockholders' equity                                              3,554              4,258
Total liabilities and stockholders' equity                         $    7,619         $    9,136

SOURCE: American Bio Medica Corporation

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

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