Arte Nathan, Vice President of Human Resources for Bellagio, and a nationally recognized leader in the field of employee training and retention programs said, "At Mirage Resorts, we feel it is of the utmost importance to insist on excellence, whether it be in property location, services or, as in this case, drug screening for our future employees. We take the integrity and motivation of our staff very seriously. We selected Psychemedics because we have confidence that their patented hair analysis process, combined with their superior service, will give us the most reliable and effective results."

Raymond, C. Kubacki, President and Chief Executive Officer of Psychemedics Corporation said, "Psychemedics is very pleased to be partnering with Mirage Resorts, clearly a leader among quality gaming institutions. Mirage now joins some 1,400 other corporate customers, including General Motors and Anheuser Busch, as well as over 60 gaming establishments, which use the Psychemedics' patented hair testing method. The Mirage properties that will now use the Psychemedics hair test include: Treasure Island, The Golden Nugget, The Mirage, and Bellagio; newest jewel in the Mirage crown. All potential employees will be given the Psychemedics drug test."

Mr. Kubacki continued, "A key reason many companies are turning to Psychemedics' hair testing method is that it provides a state-of-the-art alternative to the older methods, including urinalysis, which are susceptible to tampering. Numerous case studies have shown hair testing to be superior to urinalysis, with our hair test results identifying five to ten times the number of drug abusers in side by side tests. No longer can simple abstention for a long weekend be counted on for a "clean" drug test! The patented Psychemedics hair testing technology can detect illegal drug use for up to 90 days prior to the test and is also virtually impossible to beat."

Mr. Kubacki noted that more and more employers are realizing the cost savings of the Psychemedics drug test for potential employees. According to government statistics, drug abusers:

• Cost an employer $7,000-$10,000 per employee annually.
• Cost companies 300 percent more often than non-abusers in medical benefits.
• Are absent up to 16 times more often than their colleagues.
• Are 1/3 less productive than non-abusers.

Arte Nathan of Bellagio concluded, "We were very pleased that Psychemedics was able to handle such a large volume of tests in such a short time. Their efficiency and professionalism are among the reasons we chose them as our drug testing team."

Among the over 60 gaming establishments that contract with Psychemedics for employee and pre-employment drug testing are Caesars Casinos Hotels, Harrah's Casinos and the MGM Grand.

The spectacular Bellagio is one of the most lavish properties in Las Vegas. It features art by Monet, Degas, Cezanne, van Gogh, and Picasso, shops including Armani, Chanel, Gucci, Tiffany and Hermes; and legendary restaurants from New York's Le Cirque, San Francisco's Aqua, to Boston's Olives. The extraordinary Bellagio facility will also feature Cirque du Soleil, in its most ambitious performance to date. The property, set against a magnificent lakeside view, offers the finest service and amenities available.
 

Psychemedics Corporation is the only patented technology for analyzing hair for drug abuse. Our technology allows us to be the only source to be able to offer a person drug history over a 90 day period.  Psychemedics' hair analysis has consistently proven to be more effective than urinalysis and other methods in correctly identifying drug abusers. In fact, when hair and urine results were compared in "side-by-side" evaluation, 5 to 10 times  as many drug abusers were accurately identified with the Psychemedics hair test.  This superior detection ability makes Psychemedics' method the most cost effective and efficient method of drug testing.

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 new customer base, market share and future dividends) may be "forward-looking" statements. Actual results may differ from those stated in any forward-looking statements. Factors that may cause such difference 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, financial and operational risks associated with possible expansion of testing facilities used by the Company, government regulation, including but not limited to FDA regulations, competition and general economic conditions.