ABMC Phone: 800-227-1243
518-758-8158

ABMC Reports Third Quarter 2010 Results

KINDERHOOK, N.Y. - November 11, 2010 - American Bio Medica Corporation (Pink Sheets: ABMC) announced today its financial results for the three and nine months ended September 30, 2010

Net sales for the third quarter of 2010 were $2,530,000, compared to $2,501,000 for the third quarter of 2009, representing an increase of $29,000, or 1.2%. For the nine months ended September 30, 2010, net sales were $8,082,000, compared to $7,563,000 for the nine months ended September 30, 2009, representing an increase of $519,000, or $6.9%.

The Company reported an operating loss of $247,000 in the third quarter of 2010, compared to an operating loss of $184,000 in the same period a year ago. Net loss for the third quarter of 2010 was $300,000, or $(0.01) per share, compared to a net loss of $241,000, or $(0.01) per share in the third quarter of 2009. Operating loss for the nine months ended September 30, 2010 was $244,000, compared to an operating loss of $558,000 for the same period a year ago. Net loss for the nine months ended September 30, 2010 was $408,000, or $(0.02) per share, compared to a net loss of $712,000, or $(0.03) per share in the nine months ended September 30, 2009.

ABMC Chief Executive Officer, Stan Cipkowski stated, "We continued to see modest improvement in sales in the third quarter of 2010 despite the continued financial hardships that many of our customers are experiencing. General economic conditions and increased regulatory oversight in our markets provide new challenges for us every day, however, we continue to control expenses and manufacturing costs with the goal of improving operating results."

Conference Call

The Company will host a conference call and webcast to discuss the Third Quarter 2010 results on Friday, November 12, 2010 at 11:00 a.m. (ET). 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 866-212-4491 and internationally dial 416-800- 1066. 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 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®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II 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, 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, 2009, 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

three months ended

September 30, 2010

For the

three months ended

September 30, 2009

For the

nine months ended

September 30, 2010

For the

nine months ended

September 30, 2009

Net sales $ 2,530 $ 2,501 $ 8,082 $ 7,563
Cost of goods sold 1,653 1,476 4,793 4,463
Gross profit 877 1,025 3,289 3,100
Operating expenses:
Research and development 28 108 244 316
Selling and marketing 511 517 1,532 1,587
General and administrative 585 584 1,757 1,755
Total operating expenses 1,124 1,209 3,533 3,658
Operating loss (247 ) (184 ) (244 ) (558 )
Other expense, net (52 ) (57 ) (160 ) (154 )
Net loss before tax (299 ) (241 ) (404 ) (712 )
Income tax expense (1 ) (4 )
Net loss $ (300 ) $ (241 ) $ (408 ) $ (712 )
Basic & diluted loss per common share
$
(0.01
)
$
(0.01
)
$
(0.02
)
$
(0.03
)
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)
September 30, December 31,
2010
(unaudited)
2009
ASSETS
Current assets
Cash and cash equivalents $ 66 $ 35
Accounts receivable, net of allowance for doubtful accounts of $76,000 at September 30, 2010 and $67,000 at December 31, 2009

1,254

816

Inventory, net of allowance for slow moving and obsolete inventory of $223,000 at September 30, 2010 and $271,000 at December 31, 2009

3,751

4,315

Prepaid expenses and other current assets 186 101
Total current assets 5,257 5,267
Property, plant and equipment, net 1,462 1,624
Debt issuance costs, net 83 118
Other assets 30 31
Total assets $ 6,832 $ 7,040
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 589 $ 678
Accrued expenses and other current liabilities 321 506
Wages payable 252 215
Line of credit 749 260
Current portion of long-term debt and unearned grant 893 117
Total current liabilities 2,804 1,776
Other liabilities 138 136
Long-term debt 753 1,606
Related party note 124 124
Unearned grant 20 20
Total liabilities 3,839 3,662
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity:
Common stock 217 217
Additional paid-in capital 19,323 19,299
Accumulated deficit (16,547 ) (16,138 )
Total stockholders’ equity 2,993 3,378
Total liabilities and stockholders' equity $ 6,832 $ 7,040

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