KINDERHOOK, N.Y. – August 15, 2011 – American Bio Medica Corporation (ABMC.PK) today announced financial results for the three and six months ended June 30, 2011.

Net sales for the second quarter of 2011 were $2,486,000, compared to $3,126,000 for the second quarter of 2010, representing a decrease of $640,000, or 20.5%. For the six months ended June 30, 2011, net sales were $4,533,000, compared to $5,552,000 for the six months ended June 30, 2010, representing a decrease of $1,019,000, or 18.4%.

The Company reported operating income of $175,000 in the second quarter of 2011, compared to operating income of $222,000 in the second quarter of 2010. Net income for the second quarter of 2011 was $123,000, or $0.01 per share, compared to net income of $167,000, or $0.01 per share in the second quarter of 2010. Operating loss for the first six months of 2011 was $198,000, compared to an operating income of $3,000 in the first six months of 2010. Net loss for the first half of 2011 was $301,000, or $(0.01) per share, compared to a net loss of $108,000, or $0.00 per share in the first half of 2010.

ABMC Chief Executive Officer Stan Cipkowski stated, “We have made significant expense reductions that have allowed us to be profitable in the second quarter despite the downturn in sales. We will continue to monitor expenses to ensure that they remain in line with sales levels. The uncertainty of our economy continues to negatively impact business in our core markets of workplace and government. This uncertainty also makes it difficult to predict what the future will bring, however, if we continue to see sales declines in our U.S. markets, we are hopeful that new sales opportunities in European markets will offset such declines.”

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, 2010, 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 loss per share)
(unaudited)
For the threeFor the threeFor the sixFor the six
months endedmonths endedmonths endedmonths ended
June 30, 2011June 30, 2010June 30, 2011June 30, 2010
Net sales$2,486$3,126$4,533$5,552
Cost of goods sold1,3351,6652,6203,140
Gross profit1,1511,4611,9132,412
Operating expenses:
Research and development57114109216
Selling and marketing4455349021,021
General and administrative4745911,1001,172
Total operating expenses9761,2392,1112,409
Operating income / (loss)175222(198)3
Other expense(51)(55)(102)(108)
Net income / (loss) before tax124167(300)(105)
Income tax expense(1)(1)(3)
Net income / (loss)$123$167$(301)$(108)
Basic & diluted income/ (loss) per common share
$
0.01
$
0.01
$
(0.01)
$
0.00
Weighted average shares outstanding – basic
21,745
21,745
21,745
21,745
Weighted average shares outstanding – diluted
21,828
21,745
21,745
21,745
American Bio Medica Corporation
Balance Sheets
(in thousands)
June 30,December 31,
2011

(unaudited)
2010
ASSETS
Current Assets
Cash and cash equivalents$22$37
Accounts receivable, net of allowance for doubtful accounts of
$66,000 at June 30, 2011 and $76,000 at December 31, 2010
1,079
743
Inventory, net of allowance for slow moving and obsolete
inventory of $207,000 at June 30, 2011 and $213,000 at
December 31, 2010

3,221

3,604

Prepaid expenses and other current assets156121
Total current assets4,4784,505
Property, plant and equipment, net1,3321,409
Debt issuance costs, net5072
Other assets2929
Total assets$5,889$6,015
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable600432
Accrued expenses and other current liabilities224287
Wages payable281252
Line of credit580493
Current portion of long-term debt and unearned grant129140
Total current liabilities1,8141,604
Other liabilities141140
Long-term debt1,4191,480
Related party note124124
Unearned grant1010
Total liabilities3,5083,358
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock217217
Additional paid-in capital19,35419,328
Accumulated deficit(17,190)(16,888)
Total stockholders’ equity2,3812,657
Total liabilities and stockholders’ equity$5,889$6,015
Contact:
American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext 106
Chief Executive Officer