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Psychemedics Corporation Announces 2008 Year End Results
Date:2/18/2009

limited to FDA regulations, competition and general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission.

                          Psychemedics Corporation
                   For the Period Ending December 31, 2008

                             Three Months Ended        Twelve Months Ended
                                 December 31,             December 31,
                                 ------------             ------------
                               2008        2007         2008         2007
                               ----        ----         ----         ----

    TOTAL REVENUES          $4,824,016  $5,891,412  $22,948,604  $24,568,824
    DIRECT COSTS             2,224,289   2,496,674    9,598,515    9,892,226
    Gross Profit             2,599,727   3,394,738   13,350,089   14,676,598

    EXPENSES
    Marketing and Selling      933,699     822,833    3,648,584    3,099,909
    General &
     Administrative          1,257,268     978,962    4,520,074    3,948,642
    Research and
     Development               112,092     111,526      474,622      489,007
    Total Operating
     Expenses                2,303,059   1,913,321    8,643,280    7,537,558

    Operating Income           296,668   1,481,417    4,706,809    7,139,040

    Interest Income             58,073     114,600      308,034      416,647

    Income before taxes        354,741   1,596,017    5,014,843    7,555,687
                              --------   ---------    ---------    ---------

    Tax Provision              182,013     689,200    2,046,054    3,072,000
                              --------   ---------    ---------    ---------

    Net Income                $172,728    $906,817   $2,968,789   $4,483,687

    Basic net income per
     share                       $0.03       $0.17        $0.57        $0.86

    Diluted income per
     
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SOURCE Psychemedics Corporation
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