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

ABMC Reports Second Quarter 2013 Results

KINDERHOOK, N.Y. - August 14, 2013 - American Bio Medica Corporation (ABMC.PK) today announced financial results for the three and six months ended June 30, 2013.

Net sales for the second quarter of 2013 were $2,380,000, compared to $2,462,000 in the second quarter of 2012, representing a decrease of $82,000, or 3.3%. For the six months ended June 30, 2013, net sales were $4,505,000 compared to $4,758,000 for the six months ended June 30, 2012, representing a decrease of $253,000, or 5.3%.

The Company reported an operating loss of $(211,000) in the second quarter of 2013, compared to an operating loss of $(30,000) in the second quarter of 2012. Net loss for the second quarter of 2013 was $(294,000), or $(0.01) per share, compared to a net loss of $(77,000), or $(0.00) per share in the second quarter of 2012. Operating loss for the first six months of 2013 was $(573,000), compared to an operating loss of $(199,000) in the first six months of 2012. Net loss for the first half of 2013 was $(718,000), or $(0.03) per share, compared to a net loss of $(283,000), or $(0.01) per share in the first half of 2012.

ABMC Chief Executive Officer Stan Cipkowski stated, "Sales growth in our core markets continues to be elusive, not only for ABMC but for our entire industry. This continues to be for the same reasons that have plagued us for the past several years, high unemployment and the uncertain worldwide economic outlook. With the introduction of two new products, pending FDA clearance, we expect to see sales and earnings growth in new and expanded markets in the near future."

Cipkowski continued, "Gross margins have returned to appropriate historical levels, and though we have continued to cut operating expenses, costs related to regulatory clearance for the new products as well as costs associated with additional funding caused increased G&A expenses. Diversification continues to be our primary objective in 2013."

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation develops, manufactures and markets accurate, cost-effective immunoassay test kits, primarily 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™ test 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 year ended December 31, 2012, 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
Condensed Statements of Operations
(unaudited)
For the three For the three For the six For the six
months ended months ended months ended months ended
June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
Net sales $ 2,380,000 $ 2,462,000 $ 4,505,000 $ 4,758,000
Cost of goods sold 1,411,000 1,420,000 2,750,000 2,753,000
Gross profit 969,000 1,042,000 1,755,000 2,005,000
Operating expenses:
Research and development 115,000 55,000 178,000 108,000
Selling and marketing 491,000 529,000 966,000 1,050,000
General and administrative 574,000 488,000 1,184,000 1,046,000
Total operating expenses 1,180,000 1,072,000 2,328,000 2,204,000
Operating loss (211,000 ) (30,000 ) (573,000 ) (199,000 )
Other expense (82,000 ) (44,000 ) (143,000 ) (86,000 )
Net loss before tax (293,000 ) (74,000 ) (716,000 ) (285,000 )
Income tax (expense) / benefit (1,000 ) (3,000 ) (2,000 ) 2,000
Net loss $ (294,000 ) $ (77,000 ) $ (718,000 ) $ (283,000 )
Basic & diluted (loss) / income per common share

$

(0.01

)

$

(0.00

)

$

(0.03

)

$

(0.01

)

Weighted average shares outstanding – basic and diluted

22,166,336

21,744,768

22,109,560

21,744,768

American Bio Medica Corporation
Condensed Balance Sheets
June 30, December 31,

2013
(unaudited)

2012
ASSETS
Current Assets
Cash and cash equivalents $ 55,000 $ 89,000
Accounts receivable, net of allowance for doubtful accounts of $59,000 at June 30, 2013 and $60,000 at December 31, 2012

1,054,000

810,000

Inventory, net of allowance for slow moving and obsolete inventory of $358,000 at June 30, 2013 and $261,000 at December 31, 2012

2,481,000

2,571,000

Prepaid expenses and other current assets 103,000 50,000
Total current assets 3,693,000 3,520,000
Property, plant and equipment, net 1,190,000 1,192,000
Debt issuance costs, net 346,000 29,000
Patents 23,000 24,000
Other assets 14,000 14,000
Total assets $ 5,266,000 $ 4,779,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable 648,000 $ 1,016,000
Accrued expenses and other current liabilities 215,000 174,000
Wages payable 239,000 231,000
Line of credit 1,583,000 321,000
Current portion of long-term debt 1,318,000 1,404,000
Total current liabilities 4,003,000 3,146,000
Other liabilities 146,000 145,000
Related party note 124,000 124,000
Total liabilities 4,273,000 3,415,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock 222,000 218,000
Additional paid-in capital 19,833,000 19,490,000
Accumulated deficit (19,062,000 ) (18,344,000 )
Total stockholders’ equity 993,000 1,364,000
Total liabilities and stockholders’ equity $ 5,266,000 $ 4,779,000

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