PSYCHEMEDICS CORPORATION COMPLETES
2,000,000 CORPORATE DRUG TESTS

Cambridge, Massachusetts, June 30, 1999 -- Psychemedics Corporation (AMEX:PMD) today announced it had completed over 2,000,000 corporate drugtests using the Company's patented and proprietary hair test for detecting drugs of abuse.

Raymond C. Kubacki, President and Chief Executive Officer said, "This is another milestone for our Company. It not only demonstrates that our superior drug testing method is finding broad and enthusiastic reception in the marketplace, but that our technology and science has been subjected to the rigors and scrutiny of years of research and over 2 million tests in the field! Recently, a study in a new publication, Drug Testing Technology: Assessment of Field Applications (CRC Press 1999) concluded that there is no race bias with hair testing dispelling the last of the lingering "myths" spread by supporters of competing testing methods and the familiar anti drug testing organizations opposed, in principle, to all drug testing."

Kubacki concluded, "Over 1600 corporations, many in the Fortune 500, are currently relying on our hair test for the detection of drugs of abuse. Our patented technology and science has proven sound and we have demonstrated our worldwide leadership in the testing of drugs of abuse with hair."

Psychemedics Corporation paid a quarterly dividend of $.04 per share on June 29, 1999.
 
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NEW STUDY SHOWS NO RACE BIAS WITH HAIR TESTING


Cambridge, Massachusetts, June 14, 1999 -- Psychemedics Corporation (AMEX:PMD) today reported that a new publication, Drug Testing Technology: Assessment of Field Applications (CRC Press 1999) compares and evaluates various methods used to determine illicit drug use. Included in the publication is "An Analysis of the Racial Bias Controversy in the Use of Hair Assays" by Tom Mieczkowski, PH.D. and Richard Newel, MA, which thoroughly debunks the earlier conjecture that hair analysis was "potentially" color or racially biased.

The study further reports on flaws in both the methodology and data interpretation in the earlier conclusions of the proponents of the "bias" theories. Dr. Mieczkowski concludes from the analysis of numerous data sets that any effect of hair color or race would be negligible as a factor in the outcome of a hair test. In fact, in a side-by-side comparison of hair, urine and self-reporting, the racial differential in positive rates, compared to self-reporting, was greater in urine than hair analysis.

Raymond C. Kubacki, President and C.E.O. of Psychemedics Corporation that is the laboratory performing the majority of hair testing worldwide said "We are pleased to see the growing body of credible scientific literature reporting on hair testing. We believe that reports of hair color as a biological race marker were perpetuated by opponents of drug testing. Further, there should be no tolerance for the reckless distribution of misinformation purely to discredit a credible and proven technology which can be a valuable tool in the war against drugs."

Kubacki continued, "We currently serve over 1600 corporations, many in the Fortune 500, four of the largest police departments, five Federal Reserve Banks, hospitals, universities and others. They have done extensive due diligence on our patented hair test for drugs of abuse and find our method accurate and extremely effective in identifying drug users. While some persistent critics, inaccurately described as "independent", have attempted to slow the acceptance of hair testing, it is nonetheless rapidly becoming the "Gold Standard" when absolute detection of drug abusers is critical. This new study should finally dispel any of the lingering "myths" spread by supporters of competing testing methods and/or anti drug testing organizations."

Psychemedics Corporation serves the fast growing drug testing market. The patented test offered by Psychemedics is unique in that it uses hair, instead of urine, as the test substance. The Psychemedics testing method is obviously less invasive, and also affords dramatically higher detection rates. One reason is the wider window of detection; a urine test typically reveals drug use during the previous three or four days while Psychemedics' hair test detects usage for a previous period of approximately 90 days. Additionally, there are several well-publicized and easily available means of eluding positive urine test results including simple short-term abstinence. These common methods of beating a urine test are not available to a drug user subjected to the Psychemedics hair test.

Psychemedics Corporation recently announced a quarterly dividend of $.04 per share payable to shareholders of record on June 15, 1999.
More on drug testing


DaimlerChrysler Drug Case
 
(Dow Jones) DJN: Drug Charges Brought Against 11 DaimlerChrysler Employees

WARREN, Mich.  (AP) --Drug charges have been brought against 11 DaimlerChrysler AG workers following a 16-month undercover investigation at their auto plant.

A forklift operator, William Sturkin, was charged with possession with intent to deliver cocaine and heroin at the Dodge City truck assembly plant, where he worked for more than 20 years. Sturkin, 45, of Detroit, complained of heart problems Sunday in the Warren police lockup and was transported to St. John Macomb Hospital Center for treatment of an irregular heartbeat. He was arraigned Monday at his hospital bed and ordered held on $200,000 bond.

Police arrested 10 others last week on lesser charges.

Authorities launched the probe in late 1997, when workers complained to management about drug dealing at the plant. Daimler-Benz AG and Chrysler Corp. merged in November. After conferring with police and the Macomb County prosecutor's office, the automaker hired a private detective to work undercover in the plant. Detective Cpl. Mark Fontaine said the undercover employee purchased marijuana from Sturkin.

As part of the investigation, police also seized 77 rocks of crack cocaine valued at $10 - $20 each, 65 packs of heroin worth about $650 on the street, and 29 $10 packets of powder cocaine, Fontaine said.
He said more arrests were possible.

(END) DOW JONES NEWS  04-06-99


 Drug Testing in the Workplace


IMPORTANT NEWS

The "CBS Morning News" completed a three part investigation on hair testing which was aired February 15th, 16th and 17th. Althought the intent of the story appeared to be designed to be negative showing variations among hair testing labs, the results of the study demonstrated the accuracy of Psychemedics testing methodology.

CBS sent "blind" test samples to Psychemedics and two other laboratory companies that advertise a hair test for drugs of abuse. Psychemedics was the only laboratory that correctly identified every drug - using individual as positive for one or more drugs and correctly identified non-users as negative.

Additionally, and most importantly, Psychemedics was the only laboratory that correctly identified the sample with external contamination. Both of the other labs identified this negative sample as positive. These "false positives" pose the greatest risk and liability to a company with a drug testing program. A false positive not only increases the risk of losing in court and embarrassing the company and its' management, but can cause great personal harm to innocent victims.

During the CBS report, reference was made to a series of studies which had been done by the National Institute of Standards and Technologies. Those studies involve sending 7 rounds of "blind" hair samples to numerous laboratories across the United States. Psychemedics has been 100% successful in identifying positives and negatives in all of these studies.

Psychemedics Corporation has performed, and continues to perform, more drug tests using hair as the sample than any other laboratory in the world. Our patented technology has withstood numerous court challenges. We pride ourselves on our state-of-the-art science and currently have over 1600 corporations, police departments, Federal Reserve Banks, parole departments and schools and universities relying on our patented testing.

We were pleased that even the CBS samples clearly demonstrated that our test is reliable, and most importantly, able to determine outside contamination and prevent false positives. Our clients can be assured that they are using the very best drug testing technology available.
 
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