American Bio Medica Corporation and Nanogen Sign Supply Agreement; Nanogen Expands Point-of-Care Product Line to Include Drugs of Abuse Tests

KINDERHOOK, N.Y. & SAN DIEGO--(BUSINESS WIRE)--Aug. 23, 2006--American Bio Medica Corporation (NASDAQ: ABMC), a global provider of immunoassay diagnostic test kits, and Nanogen, Inc. (NASDAQ: NGEN), a developer of advanced diagnostic products, announced today that they have entered into a supply agreement in which ABMC will sell its rapid drugs of abuse (DOA) tests to Nanogen. Nanogen will market the tests, under their own Tox STATus(TM) brand name, to customers in hospital- related markets using its existing sales force and distribution network.

The immunoassay DOA tests, which can be used to detect up to 15 commonly abused substances including cocaine, methamphetamine and THC (active ingredient in marijuana), are FDA-cleared and CE Marked.

“Establishing a partnership to reach markets including hospitals has been a priority for ABMC some time. I am excited about this opportunity with Nanogen and what it means for sales of ABMC products in markets in which we currently have minimal presence.”

Nanogen currently manufactures and markets its Cardiac STATus(TM) immunoassay tests for rapid emergency room detection of heart attacks on a global basis. The ABMC-manufactured tests will deliver results using Nanogen's portable hand-held I-Lynx reader.

Nanogen expects to begin distribution of the DOA rapid tests before the end of the year.

"The drugs of abuse products supplied by ABMC expand our ability to meet the point of care needs of our current customers," said Howard Birndorf, Nanogen's chairman and CEO, "and they will also help to attract additional customers. We examined a number of potential partners for penetrating the growing DOA diagnostic market, and we are very pleased with the performance of the ABMC tests."

ABMC Chief Executive Officer Stan Cipkowski stated: "Establishing a partnership to reach markets including hospitals has been a priority for ABMC some time. I am excited about this opportunity with Nanogen and what it means for sales of ABMC products in markets in which we currently have minimal presence." To date, ABMC's customer base has consisted mainly of the workplace and law enforcement DOA market segments.

A recently issued report from the Substance Abuse and Mental Health Services Administration showed that more than a million emergency department visits in 2004 were related to drug misuse or abuse. According to a Biotechnology Associates Report, the point of care DOA market is expected to exceed $100 million in 2007.

For more information on ABMC or its drug testing products, please visit

About Nanogen, Inc.

Nanogen's advanced technologies provide researchers, clinicians and physicians worldwide with improved methods and tools to predict, diagnose, and ultimately help treat disease. The company's products include real-time PCR reagents, the NanoChip(R) electronic microarray platform and a line of rapid diagnostic tests. Nanogen's ten years of pioneering research involving nanotechnology holds the promise of miniaturization and continues to be supported for its potential for diagnostic and biodefense applications. For additional information please visit Nanogen's website at

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(R), Rapid One, Rapid TEC(R), RDS(R) InCup(R) and Rapid TOX(TM) products test for the presence or absence of drugs of abuse in urine, while OralStat(R) tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader(TM) 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.

Forward-Looking Statement

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including whether patents owned or licensed will be developed into products, whether the patents offer any protection against competitors with competing technologies, whether products under development can be successfully developed and commercialized, whether results reported by customers or partners can be identically replicated, whether the market for molecular diagnostics technologies and products will further develop, and other risks and uncertainties discussed under the caption "Factors That May Affect Results" and elsewhere in Nanogen's and ABMC's Form 10-K or Form 10-Q most recently filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Nanogen and ABMC disclaim any intent or obligation to update these forward-looking statements.


Stan Cipkowski, 800-227-1243, Ext 106
Suzanne Clancy, 858-410-4688

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