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Psychemedics Corporation Announces First Quarter Results
Date:4/30/2008

on of working capital at March 31, 2008. The 13% dividend increase from $0.15 to $0.17 demonstrates our directors' commitment to rewarding shareholders and sharing the financial success of the Company. Therefore we are pleased to declare our 47th consecutive quarterly dividend."

On March 17, 2008, the Company announced the authorization of a 250,000 share stock repurchase program.

Psychemedics is the world's largest provider of hair testing for drugs of abuse with thousands of corporations relying on the patented Psychemedics drug testing services. Psychemedics' clients include over 10% of the Fortune 500, some of the largest police departments in America and six Federal Reserve Banks.

Financial Highlights:

-- Revenue for the first quarter of $5.7 million, no significant change

from 2007

-- Pretax income for the first quarter of $1.5 million, down 13% from 2007

-- Net income for the first quarter of $0.9, or $0.17 per diluted share,

down 14% from 2007

The Psychemedics web site is http://www.drugtestwithhair.com

Cautionary Statement for purposes of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995: From time to time, information provided by Psychemedics may contain forward-looking information that involves risks and uncertainties. In particular, statements contained in this release that are not historical facts (including but not limited to statements concerning earnings, earnings per share, revenues, dividends, future business, growth opportunities, new accounts, customer base, market share, test volume and sales and marketing strategies) may be "forward looking" statements. Actual results may differ from those stated in any forward-looking statements. Factors that may cause such differences include but are not limited to risks associated with the expansion of the Company's sales and marketing t
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SOURCE Psychemedics Corporation
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