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INVESTOR PRESENTATION AUGUST 2006

INVESTOR PRESENTATION AUGUST 2006. Forward Looking Statements.

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INVESTOR PRESENTATION AUGUST 2006

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  1. INVESTOR PRESENTATION AUGUST 2006

  2. Forward Looking Statements Statements contained herein that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of Chembio and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, Chembio’s ability to obtain additional financing and the demand for Chembio's products. Chembio undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Chembio's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact Chembio's success are more fully disclosed in Chembio's most recent public filings with the U.S. Securities and Exchange Commission.

  3. Growing Global Health Market For Rapid Tests FDA Approval of Two HIV Tests Negotiating with US Marketing Partner Successful Execution in International Markets Pipeline of Complementary Products and Technologies Experienced Management Team Investment Highlights

  4. Estimated 30% of 1MM HIV+ in U.S. are not aware of their status Rapid tests provide the best chance to test and counsel at the point of care and thereby reduce further transmission Current market ~4MM ($50MM) tests could grow 4X New CDC recommendations for routine HIV testing for all Americans age13- 64 $90MM additional funding requested by the President for 2006-2007 HHS Budget Significant growth in hospital market Additional future opportunity in the OTC market Guidelines for approval adopted by FDA, March 2006 The US HIV Rapid Test Market is Growing

  5. International Need for Several Hundred Million Tests 2007-2010 Estimated 40 million infected with HIV/AIDS worldwide, but only 10% aware of their status Estimated 200MM tests needed for PEPFAR 2MM treatment goal $8.3 billion spent on AIDS last year (half from US); UNAIDS estimates $22B / year needed by 2008 Annual therapy cost in 2001 - $10,000; ~$200 today More people will be tested with knowledge that treatment is available

  6. Government Programs to Facilitate Awareness and Testing Initiatives Clinton Foundation HIV/AIDS Initiative The initiative is focused on accelerating high quality treatment and partnering with industry to cost effectively bring treatment to the people in need Chembio was one of four selected by the Clinton Foundation HIV/AIDS Initiative to make available rapid HIV tests that will be used to detect HIV easily and cost effectively The President's Emergency Plan for AIDS Relief (PEPFAR) Commitment to provide $15 billion over five years to fund the Emergency Plan for AIDS Relief The Plan will increase the availability of HIV testing services through a number of key innovative strategies including ensuring adequate supplies of HIV test kits and other essential products The Global Fund Created to finance a dramatic turn-around in the fight against AIDS, tuberculosis and malaria To date, the Global Fund has committed US$ 4.9 billion in 131 countries to support aggressive interventions against AIDS, tuberculosis and malaria

  7. Chembio’s Rapid HIV Tests FDA Approved 5/29/06 • Rapid – 15 minutes • Safe, easy application • Operator friendly • Non–invasive whole blood sample – the standard • True IgG Control- Limits False Negatives • 24 month shelf life • Highly sensitive (99.7%) and specific (99.9%) • Only closed rapid HIV system

  8. Chembio’s Rapid HIV Tests FDA Approved 5/29/06 WHO “Approved” 2005

  9. HIV Tests Marketing Timeline April 18, 2006: Chembio receives FDA approvable letter for its rapid HIV tests May 29, 2006: Chembio receives FDA Approval for its rapid HIV tests Q2: Expect CLAI Waiver submission Q4: Begin working on CE Marking Q4: Commence Plan/Studies for OTC market 2007-2008: Continue increases in US and international sales Q3: Expect to be granted CLIA Waiver Q2 Q4 2007-2008 Q3 Early 2008: Commence Sales in Europe/OTC Q3/Q4: Anticipated Definitive Agreement with Marketing Partner for US and Other Markets (Professional & OTC) Q3/Q4: Initial Sales US Market

  10. U.S. Marketing Plan Currently in discussion with a partner to market HIV products in the U.S. Will retain the right to market non-HIV products in the U.S. Chembio will retain the marketing rights to all products outside the U.S. Established Business Development Offices in Tanzania and Nigeria Chembio’s test designated in Ugandan and Nigerian national protocols; several others pending; distributors established 13 Year technology transfer and supply contract with Brazilian government Public-Private partnership Marketing Strategy

  11. 15,000 SF FDA approved leased facility in Medford, NY Total of 70 Employees Includes all R&D, QA/QC and Technical Support Functions as well as Sales, Administrative and Production and Assembly Functions Will Also Be USDA licensed Capacity to produce 10MM units based upon one operating shift Facility automated for strip production and lamination Plan to Invest in Assembly Automation Will accommodate current and future products Facilities & Manufacturing Overview

  12. Tuberculosis Rapid Tests Human TB Under Development with DPP™ World’s Most Deadly Infectious Disease NIH, WHO Grants and Collaborations Veterinary TB Leverages Our Expertise In TB Serology $50MM Market for Cattle and Other Species - First Product Currently Under USDA Review for Approval “Neglected” Diseases Chagas Disease Leading Rapid Test $1.2 MM Order from PAHO New Product Collaborations in Discussion with Partners Other Product Opportunities

  13. “Dual Path Platform” (DPP™) For Next Generation Tests Increase of 10-50X in analytical sensitivity vs. conventional lateral flow Oral fluid tests more feasible due to sample delivery Patent pending Outside current lateral flow IP, reduces IP costs Licensing strategy for non-core applications Technology in Development Dual Path Rapid Test Platform 12345678

  14. DPP Single Parameter Test Procedure 12345678 12345678 12345678 2. Add 1 drop of buffer to the sample+buffer well (1). 3. Add four drops of the same buffer to the buffer well (2) when the colored lines disappear. 1. Add 5 l of serum/blood to the sample+buffer well (1). 4. Read the results at 15 minutes Negative result: one line or Positive result: two lines 12345678 12345678

  15. Growing HIV & Chagas Revenues

  16. Capital Structure as of 6/30/06

  17. Experienced Senior Management Team

  18. Independent Directors / Advisory Board

  19. Summary of Chembio • Growing Global Health Market For Rapid Tests • Successful Execution in International Markets • FDA Approval of Two HIV Tests • Negotiating with US Marketing Partner • Pipeline of Complementary Products and Technologies • Experienced Management Team

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