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

eam, development of markets for new products and services offered, the economic health of principal customers of the Company, government regulation, including but not limited to FDA regulations, competition and general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission.

Contact:

Jennifer Chmieleski

Vice President and Controller

(978) 206-8220

Jenniferc@psychemedics.com

PSYCHEMEDICS CORPORATION

STATEMENTS OF INCOME

(in thousands, except per share amounts)

UNAUDITED

Three months ended

March 31, March 31,

2008 2007

REVENUE $5,709 $5,717

COST OF REVENUE 2,387 2,455

Gross profit 3,322 3,262

OPERATING EXPENSES:

General and administrative 1,022 832

Marketing and selling 799 705

Research and development 118 95

1,939 1,632

Income from operations 1,383 1,630

Interest income 112 96

INCOME BEFORE PROVISION FOR INCOME TAXES 1,495 1,726

PROVISION FOR INCOME TAXES 605 691

NET INCOME $890 $1,035

BASIC NET INCOME PER SHARE
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SOURCE Psychemedics Corporation
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