American Bio Medica Announces Third Quarter 2009 Results

KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- November 12, 2009 -- American Bio Medica Corporation (ABMC.PK) today announced unaudited financial results for the three and nine month periods ending September 30, 2009.

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®, 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, 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, our non-compliance with the continued listing requirements of the Nasdaq Stock Market, 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.

American Bio Medica Corporation
Statements of Operations

(in thousands, except earnings per share)

(unaudited)

For the
three months ended

September 30, 2009
For the
three months ended

September 30, 2008

For the

nine months ended

September 30, 2009

For the

nine months ended

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,
2009
December 31,

2008

(Unaudited)

Assets

Current assets:

Cash and equivalents $ 181 $ 201

Accounts receivable, net of allowance of $105,000 at September 30, 2009 and December 31, 2008
996

1,161

Inventory-net of reserve for slow moving and obsolete inventory of $308,000 at September 30, 2009 and December 31, 2008

4,404

5,552

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

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