Psychemedics Corporation Announces Second Quart...(ver despite these investmentswe continue...),Health

Kubacki concluded, "The Company continues to have a strong balance sheet with approximately $9.5 million of cash and investments and no long-term debt. We continue to stay focused and we remain confident in our future growth. Therefore, we are declaring our 48th consecutive quarterly dividend. This dividend demonstrates our Directors' confidence in the future and continued commitment to rewarding shareholders as we move forward."

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 Summary:

-- Revenue for the second quarter of $6.2 million, down 4% from the prior

year quarter

-- Revenue for the six month period of $11.9 million, down 2% from the

prior year period

-- Pretax income for the second quarter of $1.7 million, down 22% from the

prior year quarter

-- Pretax income for the six month period of $3.2 million, down 18% from

the prior year period

-- Net income for the second quarter of $1.0 million, or $0.20 per diluted

share, down 23% from the prior year quarter

-- Net income for the six month period of $1.9 million, or $0.36 per

diluted share, down 19% from the prior year period

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, inf
'/>"/>