ABMC Reports Fourth Quarter and Fiscal Year End 2008 Results

KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- March 24, 2009 -- American Bio Medica Corporation (NASDAQ:ABMC) today announced financial results for the fourth quarter and the fiscal year ended December 31, 2008.

Net sales for the fiscal year ended December 31, 2008 were $12,657,000 compared to $13,872,000 for fiscal year ended December 31, 2007, representing a decrease in sales of $1,215,000 or 8.8%. Operating loss for 2008 was $626,000 compared to operating loss of $856,000 in 2007. The Company reported a net loss of $850,000, or $0.04 per share, for 2008 compared to a net loss of $990,000, or $0.05 per share for 2007.

Net sales for the fourth quarter of 2008 were $2,289,000, a decrease of $1,059,000, or 31.6% from $3,348,000 reported in the fourth quarter of 2007. Operating loss for the fourth quarter of 2008 was $557,000 compared to operating income of $6,000 for the fourth quarter of 2007. Net loss for the fourth quarter of 2008 was $672,000, or $0.03 per share, compared to net loss of $28,000, or $0.00 per share reported for the fourth quarter of 2007.

ABMC Chief Executive Officer, Stan Cipkowski, stated, "Sales in the fourth quarter of 2008 suffered greatly, especially in December of 2008, as a result of the overall condition of the global economy. More specifically, sales in our national account division, which sells primarily to the workplace market and historically sees year over year growth, declined as new and existing employment levels continued to be negatively impacted. In addition, budget cuts and price pressure continue to negatively affect our government sales division. On a brighter note, we have continued to see growth in sales outside of the United States, especially in Latin America."

Cipkowski added, "Our cost cutting initiatives implemented in 2008 did enable us to achieve improvement in earnings in 2008 even with the sharp decline in sales, and we continue to look very closely at any and all areas in which we can be more efficient and cost effective."

Conference Call

The Company will host a conference call and webcast to discuss the FY2008 and Fourth Quarter results on Wednesday, March 25, 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 1-800-711-9538 and internationally dial 1-416-640-5925. 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®, Rapid ONE®, Rapid TEC®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® products test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader® 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-KSB for the fiscal year ended December 31, 2007, and quarterly reports on Form 10-QSB 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 Operation

(in thousands, except earnings per share)

Three Months Year

Ended December 31, Ended December 31,

(unaudited) (unaudited) (unaudited)

2008 2007 2008 2007

Net sales $ 2,289 $ 3,348 $ 12,657 $ 13,872

Cost of goods sold 1,574 1,757 7,396 8,141

Gross profit 715 1,591 5,261 5,731

Operating expenses:

Research and development 118 149 563 669

Selling and marketing 552 757 2,749 3,091

General and administrative 602 679 2,575 2,827

Total operating expenses 1,272 1,585 5,887 6,587

Operating income/(loss) (557 ) 6 (626 ) (856 )

Other income/(expense) � net (114 ) (32 ) (223 ) (131 )

Income/(loss) before tax (671 ) (26 ) (849 ) (987 )

Income tax (1 ) (2 ) (1 ) (3 )

Net income/(loss) after tax $ (672 ) $ (28 ) $ (850 ) $ (990 )

Basic & diluted income/(loss) per common share $ (0.03 ) $ 0.00 $ (0.04 ) $ (0.05 )

Basic & diluted weighted average shares outstanding 21,745 21,745 21,745 21,737

American Bio Medica Corporation

Balance Sheets

(in thousands)

December 31, December 31,

2008
(unaudited)
2007

ASSETS

Current Assets

Cash and equivalents $ 201 $ 336

Accounts receivable-net of allowance for doubtful accounts of $105,000 at December 31, 2008 and December 31, 2007
1,161

1,365

Inventory, net of reserve for slow moving and obsolete inventory of $308,000 at December 31, 2008 and $250,000 at December 31, 2007

5,552

4,994

Prepaid and other current assets 97 181

Total current assets 7,011 6,876

Property, plant and equipment � net 1,961 2,267

Debt issuance costs 117

Other non-current assets 47 7

Total assets $ 9,136 $ 9,150

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $ 1,568 $ 1,403

Accrued expenses and other current liabilities 544 220

Wages payable 230 332

Patent sublicense current 50

Line of credit 431 723

Current portion of long term debt and unearned grant 1,108 131

Total current liabilities 3,881 2,859

Other long-term liabilities 207 48

Long-term debt 760 1,107

Unearned grant 30 40

Total liabilities 4,878 4,054

Stockholders' Equity:

Common stock 217 217

Additional paid-in capital 19,279 19,267

Accumulated deficit (15,238 ) (14,388 )

Total stockholders� equity 4,258 5,096

Total liabilities and stockholders' equity $ 9,136 $ 9,150

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