Psychemedics Corporation Announces Year End Results Record Annual and Quarter...(ome for 2007 of $7555687 down 4% from 20...),Health

-- Pretax Income for the fourth quarter of $1,596,017, down 16% from the

prior year quarter

-- Net Income for 2007 of $4,483,687, or $0.85 per diluted share, down 9%

from 2006

-- Net Income for the fourth quarter of $906,817, or $0.17 per diluted

share, down 23% from the prior year quarter

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, 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 network, 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

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