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    <title>
      Form S-8 to Register 1999 Plan
</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      S-8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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        <hr style="COLOR: black" align="center" noshade size="2" width="35%">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="cdi_logo.jpg" alt=""><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Chembio
      Diagnostics, Inc.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Exact
      Name of Registrant as Specified in its Charter)</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="2" width="35%">
    </div>
    <div>&#160;</div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" width="40%">

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            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nevada</strong></font></div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>88-0425691</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(State
                or Other Jurisdiction of</em></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Incorporation
                or Organization)</em></font></div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(I.R.S.
                Employer</em></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Identification
                Number)</em></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3661
      Horseblock Road</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Medford,
      New York 11763</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(631)
      924-1135</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Address,
      Including Zip Code, and Telephone Number, Including Area Code, of Registrant&#8217;s
      Principal Executive Offices)</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="center" noshade size="2" width="35%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1999
      Equity Incentive Plan</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Full
      Name of Plan)</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <hr style="COLOR: black" align="center" noshade size="2" width="35%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Lawrence&#160;A.
      Siebert</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3661
      Horseblock Road</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Medford,
      New York 11763</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(631)
      924-1135</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Name,
      Address, Including Zip Code, and Telephone Number, Including Area Code, of
      Agent
      for Service)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Copy
      to: </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Alan
      Talesnick, Esq.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>James
      J. Muchmore, Esq.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Patton
      Boggs LLP</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1660
      Lincoln Street, Suite 1900</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Denver,
      Colorado 80264</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(303)
      830-1776</strong></font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" align="center" noshade size="1" width="100%">
          <div>
            <hr style="COLOR: black" align="center" noshade size="3" width="100%">
          </div>
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CALCULATION
      OF REGISTRATION FEE</strong></font></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="57%">

          <tr>
            <td valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title
                of Securities to be Registered</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                to be Registered (1)</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
                Maximum Offering Price per Share (2)</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
                Maximum Aggregate Offering Price (2)</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                of Registration Fee (2)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                Stock, par value $.01 per share (3)</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,515,750</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.68</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1,030,710</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                31.64</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                Stock, par value $.01 per share (4)</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">165,000</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.68</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$112,200</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                3.45</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                Stock, par value $.01 per share (5)</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,319,250</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.68</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$897,090</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                27.54</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                (6):</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,000,000</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.68</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$2,040,000</font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                62.63</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="5" valign="top" width="57%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                to Rule 416 under the Securities Act of 1933, as amended, this
                Registration Statement shall also cover additional shares of Common
                Stock
                that may become issuable by reason of any stock split, stock dividend,
                recapitalization or other similar transactions effected without
                consideration that results in an increase in the number of the
                Registrant&#8217;s shares of outstanding Common Stock. In addition, this
                Registration Statement covers the resale by certain Selling Stockholders
                named in the Prospectus included in and filed with this Form&#160;S-8 of
                certain of the shares of the Registrant&#8217;s Common Stock subject to this
                Registration Statement, for which no additional registration fee
                is
                required pursuant to Rule 457(h)(3).</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Solely
                for the purpose of calculating the registration fee, the offering
                price
                per share and the aggregate offering price have been calculated pursuant
                to Rules 457(c) and 457(h) of the Securities Act of 1933, as amended,
                computed on the basis of the market value of the shares of Common
                Stock on
                March&#160;16, 2007 estimated in accordance with Rule 457(c).</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                shares underlying outstanding options granted under the 1999 Equity
                Incentive Plan.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                restricted shares previously issued upon exercise of options granted
                under
                the 1999 Equity Incentive Plan.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                shares available for future grants under the 1999 Equity Incentive
                Plan.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                total restricted shares previously issued upon excercise of options,
                shares underlying options granted, and shares available for grant,
                of
                3,000,000 under the 1999 Equity Incentive
                Plan.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
        </div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXPLANATORY
      NOTE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Registration Statement on Form S-8 (this &#8220;Registration Statement&#8221;) registers
      shares of common stock, par value $0.01 per share, of Chembio Diagnostics,
      Inc.
      (the &#8220;Company&#8221;), consisting of (i) shares previously issued upon the exercise of
      options granted under the Company&#8217;s 1999 Equity Incentive Plan (the &#8220;1999
      Plan&#8221;); (ii) shares that will be issued, upon the exercise of options granted
      under the 1999 Plan; and (iii) shares available to be issued under the 1999
      Plan.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Registration Statement contains two parts. First, the materials that follow
      Part
      I of this Registration Statement on Form S-8 (this &#8220;Registration Statement&#8221;) up
      to Part II of this Registration Statement constitute the reoffer prospectus,
      prepared in accordance with Part I of Form S-3, in accordance with General
      Instruction C of Form S-8 (the &#8220;Prospectus&#8221;). The Prospectus permits reoffers
      and resales of those shares referred to above that constitute &#8220;restricted
      securities&#8221; or &#8220;control securities&#8221;, within the meaning of Form S-8, by certain
      of the Company&#8217;s stockholders, as more fully set forth therein. The second part
      contains information required to be set forth in the registration statement
      pursuant to Part II of Form S-8. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
      I</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
      REQUIRED IN THE SECTION 10(a) PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      documents containing the information required by Part I of this Registration
      Statement will be sent or given to our employees, officers and directors, as
      specified by Rule 428(b)(1) under the Securities Act of 1933, as amended (the
      "Securities Act"). Those documents do not need to be filed with the Securities
      and Exchange Commission (the &#8220;Commission&#8221;) either as part of this Registration
      Statement or as prospectuses or prospectus supplements pursuant to Rule 424
      under the Securities Act. These documents and the documents incorporated by
      reference in this Registration Statement pursuant to Item 3 of Part II of this
      Registration Statement, taken together, constitute a prospectus that meets
      the
      requirement of Section 10(a) of the Securities Act. The Company will provide
      without charge to any person, upon written or oral request of such person,
      a
      copy of each document incorporated by reference in Item 3 of Part II of this
      Registration Statement (which documents are incorporated by reference in the
      Prospectus as set forth in Form S-8), other than exhibits to such documents
      that
      are not specifically incorporated by reference, the other documents required
      to
      be delivered to eligible employees pursuant to Rule 428(b) under the Securities
      Act and additional information about the 1999 Plan. Requests should be directed
      to the Company&#8217;s Secretary at 3661 Horseblock Road, Medford, New York
      11763.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>REOFFER
      PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CHEMBIO
      DIAGNOSTICS, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,680,750
      SHARES OF COMMON STOCK</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
      or to be Acquired by the Selling Stockholders Under</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1999
      Equity Incentive Plan</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      reoffer prospectus (this &#8220;Prospectus&#8221;) relates to an aggregate of up to
      1,680,750 shares (the &#8220;Shares&#8221;) of common stock, par value $0.01 per share (the
&#8220;Common Stock&#8221;), of Chembio Diagnostics, Inc., a Nevada corporation (the
&#8220;Company&#8221;), consisting of 165,000 outstanding restricted shares and 1,515,750
      shares issuable upon exercise of currently outstanding options, which may be
      offered and sold from time to time by certain stockholders of the Company (the
      &#8220;Selling Stockholders&#8221;) who have acquired or will acquire such Shares pursuant
      to the Company&#8217;s 1999 Equity Incentive Plan (the &#8220;1999 Plan&#8221;). See &#8220;Selling
      Stockholders&#8221;. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Prospectus covers the offering for resale of (i) shares acquired by the Selling
      Stockholders prior to the filing of&#160;the Registration Statement on Form S-8
      of which this Prospectus is a part; (ii) shares to be acquired by the Selling
      Stockholders upon an exercise of currently outstanding options ((i) and (ii)
      collectively referred to as the &#8220;Restricted Shares&#8221;); and (iii)&#160;shares to
      be acquired by Selling Stockholders who may be deemed affiliates of the Company
      after the filing of a Registration Statement on Form S-8 pursuant to options
      currently held by those Selling Stockholders (&#8220;Control Shares&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
      acquired pursuant to the 1999 Plan prior to the effective date of a registration
      statement covering securities issued under the 1999 Plan are &#8220;restricted
      securities&#8221; pursuant to Rule 144, whether or not held by affiliates of the
      Company. This Prospectus has been prepared for the purpose of registering the
      shares under the Securities Act to allow for future sales by the Selling
      Stockholders, on a continuous or delayed basis, to the public without
      restriction. The Selling Stockholders may offer for their own account these
      Shares for resale from time to time. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Selling Stockholders may sell the Shares covered by this Prospectus through
      various means, including directly or indirectly to purchasers, in one or more
      transactions on any stock market on which the Shares are traded at the time
      of
      sale, in privately negotiated transactions, or through a combination of these
      methods. Each Selling Stockholder that sells any Shares pursuant to this
      Prospectus may be deemed to be an &#8220;underwriter&#8221; within the meaning of the
      Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;). Any commissions
      received by a broker or dealer in connection with resales of shares may be
      deemed to be underwriting commissions or discounts under the Securities Act.
      For
      additional information on the Selling Stockholders&#8217; possible methods of sale,
      you should refer to the section in this Prospectus entitled &#8220;Plan of
      Distribution.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      will
      not receive any proceeds from the sale of the Shares being offered by the
      Selling Stockholders. We will pay all of the expenses associated with this
      Prospectus. Brokerage commissions and similar selling expenses, if any,
      attributable to the offer or sale of the Shares will be borne by the Selling
      Stockholder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Common Stock is quoted on the OTC Bulletin Board under the symbol &#8220;CEMI.&#8221; On
      March&#160;16, 2007, the closing bid price of our Common Stock on such market
      was $0.68 per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      investment involves a high degree of risk. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Please
      see &#8220;Risk Factors&#8221; beginning on page&#160;3 of this
      Prospectus.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Neither
      the Securities and Exchange Commission nor any state securities commission
      has
      approved or disapproved of these securities or determined whether this
      Prospectus is truthful or complete. Any representation to the contrary is a
      criminal offense.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      date
      of this Prospectus is March&#160;23, 2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="55%">

            <tr>
              <td align="right" valign="top" width="50%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TABLE
                  OF CONTENTS</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
            </tr>
            <tr>
              <td valign="top" width="50%">&#160;</td>
              <td valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Page</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Where">WHERE
                  YOU CAN FIND ADDITIONAL
                  INFORMATION</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Spec">SPECIAL
                  NOTE REGARDING FORWARD-LOOKING
                  STATEMENTS</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Sum">SUMMARY</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Risk">RISK
                  FACTORS</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Use">USE
                  OF PROCEEDS</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Sell">SELLING
                  STOCKHOLDERS</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Plan">PLAN
                  OF DISTRIBUTION</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Experts">EXPERTS</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Experts">LEGAL
                  MATTERS</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Incorp">INCORPORATION
                  OF CERTAIN DOCUMENTS BY
                  REFERENCE</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="50%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Disclouser">Disclosure
                  of Commission Position of Indemnification
                  for Securities Act Liabilities</a></font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
      should only rely on the information incorporated by reference or provided in
      this Prospectus or any supplement. We have not authorized anyone else to provide
      you with different information. The Common Stock is not being offered in any
      state where the offer is not permitted. You should not assume that the
      information in this Prospectus or any supplement is accurate as of any date
      other than the date on the front of this Prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
        </div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Where">WHERE</a>
      YOU CAN FIND ADDITIONAL INFORMATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company is subject to the information requirements of the Securities Exchange
      Act of 1934, as amended (the &#8220;Exchange Act&#8221;), and, in accordance therewith,
      files reports, proxy statements and other information with the Securities and
      Exchange Commission (the &#8220;Commission&#8221;). The reports, proxy statements and other
      information filed by the Company with the Commission can be inspected and copied
      at the Public Reference Room of the Commission at 100 F Street, N.E.,
      Washington, D.C. 20549. Copies of such material also may be obtained by mail
      from the Public Reference Room of the Commission, 100 F Street, N.E.,
      Washington, D.C. 20549, at prescribed rates. Information regarding the operation
      of the Public Reference Room may be obtained by calling the Commission at
      1-800-SEC-0330. Additionally, the Commission maintains an Internet site that
      contains reports, proxy and information statements and other information
      regarding registrants that file electronically with the Commission and that
      is
      located at http://www.sec.gov.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Prospectus constitutes part of a Registration Statement on Form S-8 filed on
      the
      date hereof (herein, together with all amendments and exhibits, referred to
      as
      the &#8220;Registration Statement&#8221;) by the Company with the Commission under the
      Securities Act. This Prospectus does not contain all of the information set
      forth in the Registration Statement, certain parts of which are omitted in
      accordance with the rules and regulations of the Commission. For further
      information with respect to the Company and the Common Stock, reference is
      hereby made to the Registration Statement. Statements contained herein
      concerning the provisions of any contract, agreement or other document are
      not
      necessarily complete, and in each instance reference is made to the copy of
      such
      contract, agreement or other document filed as an exhibit to the Registration
      Statement or otherwise filed with the Commission. Each such statement is
      qualified in its entirety by such reference. Copies of the Registration
      Statement together with exhibits may be inspected at the offices of the
      Commission as indicated above without charge and copies thereof may be obtained
      therefrom upon payment of a prescribed fee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Spec">SPEC</a>IAL
      NOTE REGARDING FORWARD-LOOKING
      STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>This
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Prospectus
      contains forward-looking statements that may be affected by matters outside
      our
      control that could cause materially different results. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Some
      of
      the information in this Prospectus contains forward-looking statements within
      the meaning of Section 27A of the Securities Act of 1933. These statements
      express, or are based on, our expectations about future events. Forward-looking
      statements give our current expectations or forecasts of future events.
      Forward-looking statements generally can be identified by the use of
      forward-looking terminology, such as, &#8220;may,&#8221; &#8220;will,&#8221; &#8220;expect,&#8221; &#8220;intend,&#8221;
&#8220;project,&#8221; &#8220;estimate,&#8221; &#8220;anticipate,&#8221; &#8220;believe&#8221; or &#8220;continue&#8221; or the negative
      thereof or similar terminology. They include statements regarding
      our:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">financial
                position;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">business
                strategy;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">budgets;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amount,
                nature and timing of capital
                expenditures;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquisition
                risks;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">operating
                costs and other expenses; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cash
                flow and anticipated liquidity.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      we believe the expectations and forecasts reflected in these and other
      forward-looking statements are reasonable, we can give no assurance they will
      prove to have been correct. They can be affected by inaccurate assumptions
      or by
      known or unknown risks and uncertainties. Factors that could cause actual
      results to differ materially from expected results are described under &#8220;Risk
      Factors&#8221; and include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">general
                economic conditions;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">currency
                exchange volatility;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                risks associated with acquiring and integrating new
                businesses;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                ability to generate sufficient cash flows to
                operate;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">availability
                of capital;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                strength and financial resources of our
                competitors;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">regulatory
                risks and developments;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                ability to find and retain skilled personnel;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                lack of liquidity of our Common
                Stock.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      of
      the factors listed above and other factors contained in this Prospectus could
      cause our actual results to differ materially from the results implied by these
      or any other forward-looking statements made by us or on our behalf. We cannot
      assure you that our future results will meet our expectations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When
      you
      consider these forward-looking statements, you should keep in mind these risk
      factors and the other cautionary statements in this Prospectus. Our
      forward-looking statements speak only as of the date made.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Sum">SUM</a>MARY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
      following summary is qualified in its entirety by the more detailed information
      and the financial statements and notes thereto appearing elsewhere in, or
      incorporated by reference into, this Prospectus. Consequently, this summary
      does
      not contain all of the information that you should consider before investing
      in
      our Common Stock. You should carefully read the entire Prospectus, including
      the
&#8220;Risk Factors&#8221; section, and the documents and information incorporated by
      reference into this Prospectus before making an investment
      decision.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Prospectus relates to 1,644,750 shares of our Common Stock, consisting of
      165,000 outstanding restricted shares and 1,479,750 shares issuable upon
      exercise of currently outstanding options, which may be offered for sale from
      time to time by the Selling Stockholders identified in this Prospectus. We
      anticipate that the Selling Stockholders will offer the Shares for sale at
      prevailing market prices on the OTC Bulletin Board on the date of such sale.
      We
      will not receive any proceeds from these sales. We are paying the expenses
      incurred in registering the Shares, but all selling and other expenses incurred
      by each of the Selling Stockholders will be borne by such Selling
      Stockholder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Chembio
      Diagnostics</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      Corporate Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chembio
      Diagnostic Systems Inc. was formed in 1985. Since inception we have been
      involved in developing, manufacturing, selling and distributing medical
      diagnostic tests, including rapid tests that detect a number of infectious
      diseases and for pregnancy. On May&#160;5, 2004, Chembio Diagnostic Systems Inc.
      completed a merger through which it became a wholly-owned subsidiary of Chembio
      Diagnostics, Inc., formerly known as Trading Solutions.com, Inc. (&#8220;Chembio&#8221; or
      the &#8220;Company&#8221;). As a result of this transaction, the management and business of
      Chembio Diagnostic Systems Inc. became the management and business of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      Business</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are a
      developer, manufacturer and marketer of rapid diagnostic tests that detect
      infectious diseases. Our main products presently commercially available are
      three rapid tests for the detection of HIV antibodies in whole blood, serum
      and
      plasma samples, two of which were approved by the FDA last year. These products
      employ single path lateral flow technology which we have licensed from Inverness
      Medical Innovations, Inc. (&#8220;Inverness&#8221;), who is also our exclusive marketing
      partner for those two products in the United States under&#160;its Clearview&#174;
brand. Inverness launched its marketing of these products in the United States
      in February, 2007. Chembio&#8217;s two HIV STAT-PAK&#174; rapid HIV tests are marketed
      outside the United States through different partners and channels under license
      from Inverness. We also have a rapid test for Chagas disease (a parasitic
      disease endemic in Latin America) as well as a line of rapid tests for
      tuberculosis, including tests for tuberculosis in animals for which USDA
      approval is pending.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March&#160;13, 2007, we were issued United States patent no.&#160;7,189,522 for
      its Dual Path Platform (&#8220;DPP&#8482;&#8221;) rapid test system. We believe that as a result
      of the patent protection we now have with DPP&#8482;,&#160;we have&#160;a significant
      opportunity to develop and license many new rapid tests in a number of fields
      including but not limited to infectious diseases. We have already completed
      initial development on some products in this new platform. We believe the DPP&#8482;
provides significant advantages over standard single path lateral flow assays,
      and we are developing most of our new products using this platform.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      products are sold to medical laboratories and hospitals, governmental and public
      health entities, non-governmental organizations, medical professionals and
      retail establishments.&#160;Our products are sold either under our STAT-PAK&#174; or
      SURE CHECK&#174; registered trademarks and/or the private labels of our marketing
      partners, such as the Inverness Clearview&#174; label.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have a
      history of losses, and we continue to incur operating and net losses. We have
      non-exclusive licenses to lateral flow patents held by Inverness and Abbott
      Laboratories, Inc., and to reagents including those that are used in our HIV
      rapid tests. These licenses do not necessarily insulate us from patent
      challenges by other patent holders. We have filed applications for two lateral
      flow patents that incorporate features that we believe may further protect
      us
      from patent challenges.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      main
      products are as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">HIV
                Rapid Tests: HIV 1/2 STAT-PAK&#174; Cassette, HIV 1/2 SURE CHECK&#174; and HIV 1/2
                STAT-PAK&#174; Dipstick;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chagas
                Rapid Test: Chagas STAT-PAK; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tuberculosis
                (TB): Prima TB STAT-PAK and Veterinary
                products.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      also
      are in the process of developing rapid tests employing our patented DPP&#8482;
technology including, but not limited to, an oral fluid rapid HIV test and
      a
      human tuberculosis test.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      manufacture all of the products we sell. All of these products, as well as
      those
      that are under development, employ various formats of lateral flow technology.
      Lateral flow, whether single or dual path, generally refers to the process
      of a
      sample flowing from the point of application on a test strip to provide a test
      result on a portion of a strip downstream from either the point of application
      of the sample or of another reagent. We believe we have expertise and
      proprietary know-how in the field of lateral flow technology.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      principal executive offices are located at 3661 Horseblock Road, Medford, New
      York 11763. Our telephone number is (631) 924-1135. Our website address is
      www.chembio.com.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Risk">RISK</a>
      FACTORS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>You
      should carefully consider each of the following risk factors and all of the
      other information provided in this Prospectus before purchasing our Common
      Stock. The risks described below are those we currently believe may materially
      affect us. An investment in our Common Stock involves a high degree of risk,
      and
      should be considered only by persons who can afford the loss of their entire
      investment. </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Risks
      related to our industry, business and strategy</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Because
      we may not be able to obtain necessary regulatory approvals for some of our
      products, we may not generate revenues in the amounts we expect, or in the
      amounts necessary to continue our business.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      our proposed and existing products are subject to regulation in the U.S. by
      the
      U.S. Food and Drug Administration, the U.S. Department of Agriculture and/or
      other domestic and international governmental, public health agencies,
      regulatory bodies or non-governmental organizations. In particular, we are
      subject to strict governmental controls on the development, manufacture,
      labeling, distribution and marketing of our products. The process of obtaining
      required approvals or clearances varies according to the nature of, and uses
      for, a specific product. These processes can involve lengthy and detailed
      laboratory testing, human or animal clinical trials, sampling activities, and
      other costly, time-consuming procedures. The submission of an application to
      a
      regulatory authority does not guarantee that the authority will grant an
      approval or clearance for product. Each authority may impose its own
      requirements and can delay or refuse to grant approval or clearance, even though
      a product has been approved in another country.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      time
      taken to obtain approval or clearance varies depending on the nature of the
      application and may result in the passage of a significant period of time from
      the date of submission of the application. Delays in the approval or clearance
      processes increase the risk that we will not succeed in introducing or selling
      the subject products, and we may determine to devote our resources to different
      products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
      in government regulations could increase our costs and could require us to
      undergo additional trials or procedures, or could make it impractical or
      impossible for us to market our products for certain uses, in certain markets,
      or at all. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
      in government regulations may adversely affect our financial condition and
      results of operations because we may have to incur additional expenses if we
      are
      required to change or implement new testing, manufacturing and control
      procedures. If we are required to devote resources to develop such new
      procedures, we may not have sufficient resources to devote to research and
      development, marketing, or other activities that are critical to our business.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      example, the European Union and other jurisdictions have recently established
      a
      requirement that diagnostic medical devices used to test human biological
      specimens must receive regulatory approval known as a CE mark, or be registered
      under the ISO 13.485 medical device directive. The letters &#8220;CE&#8221; are the
      abbreviation of the French phrase &#8220;Conforme Europ&#233;ene,&#8221; which means &#8220;European
      conformity.&#8221; ISO (&#8220;International Organization for Standardization&#8221;) is the
      world&#8217;s largest developer of standards with 148 member countries. As such,
      export to the European and other jurisdictions without the CE or ISO 13.485
      mark
      is not possible. Although we are not currently selling products to countries
      requiring CE marking, we expect that we will do so in the near future in order
      to grow our business. We are in the process of implementing quality and
      documentary procedures in order to obtain CE and ISO 13.485 registration, and
      we
      are not aware of any material reason why such approvals will not be granted.
      However, if for any reason CE or ISO 13.485 registration is not granted, our
      ability to export our products could be adversely impacted.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      can
      manufacture and sell our products only if we comply with regulations of
      government agencies such as the FDA and USDA. We have implemented a quality
      system that is intended to comply with applicable regulations. Although FDA
      approval is not required for the export of our products, there are export
      regulations promulgated by the FDA that specifically relate to the export of
      our
      products. Although we believe that we meet the regulatory standards required
      for
      the export of our products, these regulations could change in a manner that
      could adversely impact our ability to export our products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div id="HDR">
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      products may not be able to compete with new diagnostic products or existing
      products developed by well-established competitors, which would negatively
      affect our business.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      diagnostic industry is focused on the testing of biological specimens in a
      laboratory or at the point-of-care and is highly competitive and rapidly
      changing. Our principal competitors often have considerably greater financial,
      technical and marketing resources than we do. Several companies produce
      diagnostic tests that compete directly with our testing product line, including
      but not limited to, Orasure Technologies, Inverness Medical and Trinity Biotech.
      As new products enter the market, our products may become obsolete or a
      competitor&#8217;s products may be more effective or more effectively marketed and
      sold than ours. Although we have no specific knowledge of any competitor&#8217;s
      product that will render our products obsolete, if we fail to maintain and
      enhance our competitive position or fail to introduce new products and product
      features, our customers may decide to use products developed by competitors,
      which could result in a loss of revenues and cash flow. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      developing an oral fluid rapid HIV test as well as other applications utilizing
      our DPP&#8482; technology, which we believe could enhance our competitive position in
      HIV rapid testing and other fields. However, we have not completed development
      of any DPP&#8482; product, and we still have technical, manufacturing, regulatory and
      marketing challenges to meet before we will know whether we can successful
      commercialize products incorporating this technology. There can be no assurance
      that we will overcome these challenges.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      granted Inverness exclusive rights to market our SURE CHECK&#174; HIV 1/2 globally
      and our HIV 1/2 STAT PAK&#174; in the U.S. Inverness has no rapid HIV tests that are
      approved for marketing in the U.S., we are not aware of any rapid HIV products
      that Inverness is even contemplating for the U.S., and Inverness is obligated
      to
      inform us of any such products as soon as it is able to do so. Inverness does
      have rapid HIV tests manufactured by certain of its subsidiaries outside the
      U.S. that are being actively marketed outside the U.S., primarily in developing
      countries. Our HIV 1/2 STAT PAK cassette and dipstick products compete against
      these Inverness Products, and we specifically acknowledge in our agreements
      with
      Inverness the existence of such other products. Moreover, except for a product
      in the HIV barrel field as defined in our agreement with Inverness, Inverness
      is
      permitted under our agreements to market certain types of permitted competing
      rapid HIV tests in the U.S. Under these conditions, we could choose to terminate
      the applicable agreement with Inverness or change the agreement to a
      non-exclusive agreement, and Inverness would expand the lateral flow license
      granted to the Company to allow the Company to market the product independently
      or through other marketing partners. While we believe that Inverness is
      committed to successfully marketing our products particularly in the U.S. and
      other developed countries where our products are or become approved for
      marketing, Inverness may choose to develop or acquire competing products for
      marketing in the U.S. as well as other markets where they are marketing our
      SURE
      CHECK HIV 1/2 product, and such an action could have at least a temporary
      material adverse effect on the marketing of these products until such time
      as
      alternative marketing arrangements could be implemented. While we also believe
      that the expansion of our license to the Inverness lateral flow patents
      substantially facilitates our ability to make alternative marketing
      arrangements, there can be no assurance that the modification of marketing
      arrangements and the possible corresponding delays or suspension of sales would
      not have a material adverse effect on our business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the point-of-care diagnostics industry is undergoing rapid
      technological changes, with frequent introductions of new technology-driven
      products and services. As new technologies become introduced into the
      point-of-care diagnostic testing market, we may be required to commit
      considerable additional efforts, time and resources to enhance our current
      product portfolio or develop new products. We may not have the available time
      and resources to accomplish this and many of our competitors have substantially
      greater financial and other resources to invest in technological improvements.
      We may not be able to effectively implement new technology-driven products
      and
      services or be successful in marketing these products and services to our
      customers, which would materially harm our operating results.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      own no
      issued patents covering single path lateral flow technology, and the field
      of
      lateral flow technology is complex and characterized by a substantial amount
      of
      litigation, so the risk of potential patent challenges is ongoing for us in
      spite of our pending patent applications. </font></div>
    <div id="PN" style="PAGE-BREAK-AFTER: always">
      <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">5</font></div>
      <div style="WIDTH: 100%; TEXT-ALIGN: center">
        <hr style="COLOR: black" noshade size="2">
      </div>
    </div>
    <div id="HDR">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      we have been granted non-exclusive licenses to lateral flow patents owned by
      Inverness Medical Innovations, Inc. and Abbott Laboratories, Inc., there is
      no
      assurance that their lateral flow patents will not be challenged or that
      licenses from other parties may not be required, if available at all. In the
      event that it is determined that a license is required and it is not possible
      to
      negotiate a license agreement under a necessary patent, we may be able to modify
      our HIV rapid test products and other products such that a license would not
      be
      necessary. However, this alternative could delay or limit our ability to sell
      these products in the U.S. and other markets, which would adversely affect
      our
      results of operations, cash flows and business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      2005 and 2006,&#160;we made substantial additions to our intellectual property
      portfolio as a result of the development of a new rapid test platform, Dual
      Path
      Platform (DPP&#8482;). This platform has shown improved sensitivity as compared with
      conventional platforms in a number of preliminary studies using well
      characterized HIV, Tuberculosis and other samples. This technology formed the
      basis of two patent applications that we filed, and may result in additional
      applications covering additional uses of this technology platform. On
      March&#160;13, 2007, one of these patent applications was approved by the United
      States Patent &amp; Trademark Office, which issued United States patent
      no.&#160;7,189,522 for our DPP&#8482; rapid test system. Also, we believe that this
      new lateral flow platform is outside of the scope of currently issued patents
      in
      the field of lateral flow technology, thereby offering the possibility of a
      greater freedom to operate. There is no assurance that our patents or&#160;our
      products incorporating the patent claims will not be challenged at some time
      in
      the future.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
      developments in health treatments or new non-diagnostic products may reduce
      or
      eliminate the demand for our products.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      development and commercialization of products outside of the diagnostics
      industry could adversely affect sales of our product. For example, the
      development of a safe and effective vaccine to HIV or treatments for other
      diseases or conditions that our products are designed to detect, could reduce,
      or eventually eliminate, the demand for our HIV or other diagnostic products
      and
      result in a loss of revenues.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      may not have sufficient resources to effectively introduce and market our
      products, which could materially harm our operating results.
</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Introducing
      and achieving market acceptance for our rapid HIV tests and other new products
      will require substantial marketing efforts and will require us or our contract
      partners to make significant expenditures. In the U.S. and other developed
      world
      markets where we will begin to market our FDA-approved products through
      Inverness and through other partners, we have no history upon which to base
      market or customer acceptance of these products. In some instances we will
      be
      totally reliant on the marketing efforts and expenditures of our contract
      partners. If they do not have or commit the expertise and resources to
      effectively market the products that we manufacture, our operating results
      will
      be materially harmed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      success of our business depends on our ability to raise additional capital
      through the sale of debt or equity or through borrowing, and we may not be
      able
      to raise capital or borrow funds in amounts necessary to continue our business,
      or at all.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      our revenues and gross margins increased significantly in recent
      periods,&#160;we sustained significant operating losses in the first nine months
      of 2006 and the years 2005 and 2004. At September&#160;30, 2006, we had a
      stockholders&#8217; deficiency of $898,030, and a working capital surplus of
      $1,836,636. Including the funds received from the Series C 7% Convertible
      Preferred Stock offering, we believe our resources are sufficient to
      fund&#160;our needs through the end of 2007. Our liquidity and cash requirements
      will depend on several factors. These factors include: (1) the level of revenue
      growth; (2) the extent to which, if any, that revenue growth improves operating
      cash flows; (3)&#160;our investments in research and development, facilities,
      marketing, regulatory approvals and other investments it may determine to make;
      and (4) the investment in capital equipment and the extent to which it improves
      cash flow through operating efficiencies. If our resources are not sufficient
      to
      fund&#160;our needs through 2007, there are no assurances that we will be
      successful in raising sufficient capital.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March&#160;30, 2006, we sold $1 million of additional Series B Preferred stock
      to a Series B Preferred shareholder pursuant to provisions of the
      January&#160;2005 Series B 9% Preferred Stock financing agreements. Such
      provisions were exclusive to said shareholder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      June&#160;29, 2006, we borrowed $1,300,000. The loan was repaid in part on
      September&#160;27, 2006 and the balance converted on October&#160;5, 2006 and is
      secured by a lien on&#160;our assets.&#160; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September&#160;29, 2006 and October&#160;5, 2006, we completed the Series C
      Offering for $8,150,000. Some of the proceeds were used to repay the loan
      borrowed on June&#160;29, 2006. This Series C offering will be enough to supply
      our cash needs through the end of 2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      objective of increasing international sales is critical to our business plan
      and
      if we fail to meet this objective, we may not generate revenues in the amounts
      we expect, or in amounts necessary to continue our
      business.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      intend
      to attempt to increase international sales of our products. A number of factors
      can slow or prevent international sales, or substantially increase the cost
      of
      international sales, including:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">regulatory
                requirements and customs
                regulations;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cultural
                and political differences;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">foreign
                exchange rates, currency fluctuations and
                tariffs;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">dependence
                on and difficulties in managing international distributors or
                representatives;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                creditworthiness of foreign
                entities;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">difficulties
                in foreign accounts receivable collection;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">economic
                conditions and the absence of available funding
                sources.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      we are
      unable to increase our revenues from international sales, our operating results
      will be materially harmed. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      rely on trade secret laws and agreements with our key employees and other third
      parties to protect our proprietary rights, and we cannot be sure that these
      laws
      or agreements adequately protect our rights.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that factors such as the technological and creative skills of our
      personnel, strategic relationships, new product developments, frequent product
      enhancements and name recognition are essential to our success. All our
      management personnel are bound by non-disclosure agreements. If personnel leave
      our employment, in some cases we would be required to protect our intellectual
      property rights pursuant to common law theories which may be less protective
      than provisions of employment, non-competition or non-disclosure
      agreements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      seek
      to protect our proprietary products under trade secret and copyright laws,
      enter
      into license agreements for various materials and methods employed in our
      products, and enter into strategic relationships for distribution of the
      products. These strategies afford only limited protection. We currently have
      no
      or foreign patents, although we have several license agreements for reagents.
      Our Sure Check&#8482; trademark has been registered in the U.S. </font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Despite
      our efforts to protect our proprietary rights, unauthorized parties may attempt
      to copy aspects of our products or to obtain information that we regard as
      proprietary. We may be required to expend substantial resources in asserting
      or
      protecting our intellectual property rights, or in defending suits related
      to
      intellectual property rights. Disputes regarding intellectual property rights
      could substantially delay product development or commercialization activities
      because some of our available funds would be diverted away from our business
      activities. Disputes regarding intellectual property rights might include state,
      federal or foreign court litigation as well as patent interference, patent
      reexamination, patent reissue, or trademark opposition proceedings in the U.S.
      Patent and Trademark Office. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      facilitate development and commercialization of a proprietary technology base,
      we may need to obtain additional licenses to patents or other proprietary rights
      from other parties. Obtaining and maintaining these licenses, which may not
      be
      available, may require the payment of up-front fees and royalties. In addition,
      if we are unable to obtain these types of licenses, our product development
      and
      commercialization efforts may be delayed or precluded.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      order
      to sell our rapid HIV tests and generate expected revenue from these tests,
      we
      will need to arrange for a license to patents for detection of the HIV-2 virus,
      and we may not be able to do so.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      the current licensor of the peptides used in our HIV tests claims an HIV-2
      patent, other companies have also claimed such patents. Even though HIV-2 is
      a
      type of the HIV virus estimated to represent only a small fraction of the known
      HIV cases worldwide, it is still considered to be an important component in
      the
      testing regimen for HIV in many markets. HIV-2 patents often are found in most
      of the countries of North America and Western Europe, as well as in Japan,
      Korea, South Africa and Australia. Access to a license for one or more HIV-2
      patents may be necessary to sell HIV-2 tests in countries where such patents
      are
      in force, or to manufacture in countries where such patents are in force and
      then sell into non-patent markets. Since HIV-2 patents are in force in the
      U.S.,
      we may be restricted from manufacturing a rapid HIV-2 test in the U.S. and
      selling into other countries, even if there were no HIV-2 patents in those
      other
      countries. The license agreement that we have in effect for the use and sale
      of
      the Adaltis HIV 1 and 2 peptides that are used in our HIV rapid test does not
      necessarily insulate us from claims by other parties that we need to obtain
      a
      license to other HIV-1 and/or HIV-2 patents. Although we have discussed
      additional HIV-2 licenses that would be advantageous for some markets, if we
      are
      unable to complete these discussions successfully our business and operating
      results could be materially harmed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      continued growth depends on retaining our current key employees and attracting
      additional qualified personnel, and we may not be able to do
      so.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      success will depend to a large extent upon the skills and experience of our
      executive officers, management and sales, marketing, operations and scientific
      staff. Although we have not experienced unusual retention and/or recruitment
      problems to date, we may not be able to attract or retain qualified employees
      in
      the future due to the intense competition for qualified personnel among medical
      products businesses.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      we are
      not able to attract and retain the necessary personnel to accomplish our
      business objectives, we may experience constraints that will adversely affect
      our ability to effectively manufacture, sell and market our products, to meet
      the demands of our strategic partners in a timely fashion, or to support
      internal research and development programs. Although we believe we will be
      successful in attracting and retaining qualified personnel, competition for
      experienced scientists and other personnel from numerous companies and academic
      and other research institutions may limit our ability to do so on acceptable
      terms.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      entered into employment contracts with our President, Lawrence Siebert, and
      our
      Vice President of Research and Development, Javan Esfandiari. Due to the
      specific knowledge and experience of these executives regarding the industry,
      technology and market, the loss of the services of either one of them would
      likely have a material adverse effect on the Company. The contract with Mr.
      Siebert has a term of two years ending May&#160;2008, and the contract with Mr.
      Esfandiari has a term of three years ending May&#160;2007. We have obtained a
      key man insurance policy for Mr. Esfandiari.</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      believe our success depends on our ability to participate in large government
      programs in the U.S. and worldwide and we may not be able to do
      so.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe it to be in our best interests to meaningfully participate in the
      Presidential Emergency Plan for Aids Relief Program, UN Global Fund initiatives
      and other programs funded by large donors. We have initiated several strategies
      to participate in these programs. Participation in these programs requires
      alignment with the many other participants in these programs including the
      World
      Health Organization, U.S. Center for Disease Control, U.S. Agency for
      International Development, non-governmental organizations, and HIV service
      organizations. If we are unsuccessful in our efforts to participate in these
      programs, our operating results could be materially harmed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      have a history of incurring net losses and we cannot be certain that we will
      be
      able to achieve profitability.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      the
      inception of Chembio Diagnostic Systems, Inc. in 1985 and through the period
      ended </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December&#160;31,
      2005, we have incurred net losses. As of December&#160;31, 2005, we have an
      accumulated deficit of $(18,868,428). We incurred net losses of $(3,252,000)
      and
      $(3,098,891) in 2005 and 2004, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      expect
      to continue to make substantial expenditures for sales and marketing, regulatory
      submissions, product development and other purposes. Our ability to achieve
      profitability in the future will primarily depend on our ability to increase
      sales of our products, reduce production and other costs and successfully
      introduce new products and enhanced versions of our existing products into
      the
      marketplace. If we are unable to increase our revenues at a rate that is
      sufficient to achieve profitability, our operating results would be materially
      harmed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>To
      the extent that we are unable to obtain sufficient product liability insurance
      or that we incur product liability exposure that is not covered by our product
      liability insurance, our operating results could be materially
      harmed.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      may be
      held liable if any of our products, or any product which is made with the use
      or
      incorporation of any of the technologies belonging to us, causes injury of
      any
      type or is found otherwise unsuitable during product testing, manufacturing,
      marketing, sale or usage. Although we have obtained product liability insurance,
      this insurance may not fully cover our potential liabilities. In addition,
      as we
      attempt to bring new products to market, we may need to increase our product
      liability coverage which would be a significant additional expense that we
      may
      not be able to afford. If we are unable to obtain sufficient insurance coverage
      at an acceptable cost to protect us, we may be forced to abandon efforts to
      commercialize our products or those of our strategic partners, which would
      reduce our revenues.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Risks
      related to our </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Common
      Stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      Common Stock is classified as penny stock and is extremely illiquid, so
      investors may not be able to sell as much stock as they want at prevailing
      market prices.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
      Stock is classified as penny stock. Penny stocks generally are equity securities
      with a price of less than $5.00 and trade on the over-the-counter market. As
      a
      result, an investor may find it more difficult to dispose of or obtain accurate
      quotations as to the price of the Shares being registered in this registration
      statement. In addition, the &#8220;penny stock&#8221; rules adopted by the Commission under
      the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), subject
      the sale of the shares of the Common Stock to regulations that impose sales
      practice requirements on broker-dealers, causing many broker-dealers to not
      trade penny stocks or to only offer the stocks to sophisticated investors that
      meet specified net worth or net income criteria identified by the Commission.
      These regulations contribute to the lack of liquidity of penny stocks.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      average daily trading volume of our Common Stock on the over-the-counter market
      was less than 33,000 shares per day over the three months ended
      December&#160;31, 2006. If limited trading in our stock continues, it may be
      difficult for investors to sell their shares in the public market at any given
      time at prevailing prices. Since the certificates of designation creating our
      series&#160;A and series B preferred stock contain restrictions on our ability
      to declare and pay dividends on our Common Stock, the lack of liquidity of
      our
      Common Stock could negatively impact the rate of return on your
      investment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales
      of a substantial number of shares of our </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
      Stock into the public market by the selling stockholders may result in
      significant downward pressure on the price of our Common Stock and could affect
      the ability of our stockholders to realize the current trading price of our
      Common Stock.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      the
      time of effectiveness of the registration statement, the number of shares of
      our
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
      Stock eligible to be immediately sold in the market will increase significantly.
      If the selling stockholders sell significant amounts of our stock, our stock
      price could drop. Even a perception by the market that selling stockholders
      will
      sell in large amounts after the registration statement is effective could place
      significant downward pressure on our stock price.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>You
      will experience substantial dilution upon the conversion of the shares of
      preferred stock and the exercise of warrants that we issued in three private
      placements and the warrants and options that were assumed in connection with
      the
      merger. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May&#160;5,
      2004, we completed three separate private placements in which we issued
      151.57984 shares of our series A preferred stock and warrants to acquire
      9,094,801 shares of our Common Stock at an exercise price of $.90 per share.
      The
      shares of series A preferred stock are convertible into 7,578,985 shares of
      our
      Common Stock. We also issued warrants to purchase 425,000 shares of our Common
      Stock at an exercise price of $0.72 per share and warrants to purchase 510,000
      shares of Common Stock at an exercise price of $1.08 per share to designees
      of
      our placement agents. We also issued warrants pursuant to an employment
      agreement with Mark L. Baum, our former president and former member of our
      board
      of directors, to purchase 425,000 shares and 425,000 shares of our Common Stock,
      respectively, at exercise prices of $0.60 and $0.90 per share, respectively.
      In
      connection with the acquisition of Chembio Diagnostic Systems, Inc., we assumed
      the obligation to issue 690,000 shares of our Common Stock upon the exercise
      of
      warrants, which warrants are exercisable at prices ranging from $0.45 to $4.00
      per share. We also adopted the stock option plan of Chembio Diagnostic Systems
      Inc. and assumed the entire obligation to issue 704,000 common shares upon
      the
      exercise of the options outstanding as of the merger date. On January&#160;28,
      2005, we completed a private placement in which we issued 100 shares of our
      9%
      Series B Convertible Preferred Stock, which we refer to as the &#8220;Series B Stock,&#8221;
together with warrants to purchase 7,786,960 shares of our Common Stock. For
      each $.61 invested in this private placement, an investor received (a) $.61
      of
      face amount of Series B Stock, which is convertible into one share of our Common
      Stock, and (b) a five-year warrant to acquire .95 of a share of our Common
      Stock. Each full share of the Series B Stock was purchased for $50,000, with
      fractional shares of Series B Stock being purchased by investments of less
      than
      $50,000. In connection with the January&#160;28, 2005 offering, we also issued
      to the placement agent Series B Stock in an aggregate amount equal to 5% of
      the
      amount of cash proceeds from the private placement, together with accompanying
      warrants to purchase our Common Stock. We also issued to the placement agent
      warrants to purchase 737,712 shares of our Common Stock. As of March&#160;31,
      2006, there were 1,529,750 options issued and outstanding under the stock option
      plan and 1,470,250 options available for issuance under the stock option plan.
      As a result, the conversion of the outstanding preferred stock and the exercise
      of the outstanding warrants and options will result in substantial dilution
      to
      the holders of our Common Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March&#160;30, 2006, we issued to an investor 20 shares (face amount $1,000,000)
      of the Company&#8217;s series B preferred stock with warrants to purchase a total of
      1,557,377 shares of&#160;our Common Stock at an exercise price of $0.61 per
      share for a period of five years. We agreed to issue, and the investor agreed
      to
      purchase for $1,000,000, the securities described above pursuant to the terms
      of
      a Securities Purchase Agreement dated January&#160;26, 2005 by and among the
      Company and various purchasers. This transaction represents the second closing
      under the Agreement, and was triggered upon the&#160;our&#160;achievment, as of
      the fourth fiscal quarter of 2005, certain financial milestones. As compensation
      for services rendered to the Company by Midtown for the second closing, we
      agreed to issued to Midtown two shares (face amount $100,000) of its Series
      B
      Preferred and warrants to purchase a total of 155,738 shares of its Common
      Stock
      at an exercise price of $.061 per share for a period of five years.
</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June&#160;29,
      2006, we issued $1,300,000 of secured debentures to four investors. Pursuant
      to
      the terms of these debentures, investors agreed to receive back from the Company
      the full amount of their principal investment, plus interest on the unpaid
      principal sum outstanding at the rate of 0.667% per month. Each investor was
      also granted a warrant to purchase up to 400 shares of Common Stock for each
      $1,000 of such investor&#8217;s subscription amount, with an exercise price of $0.75
      per share, exercisable for a five year term. </font></div>
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      September&#160;29, 2006 and October&#160;5, 2006, we completed a private
      placement for $8,150,000, consisting of 165 shares of 7% series&#160;C
      convertible preferred stock, which we refer to as the &#8220;Series C Stock,&#8221; together
      with warrants to purchase 2,578,125 shares of our Common Stock. For each $0.80
      of consideration received, an investor received (a) $0.80 of face amount of
      series C stock, which shall pay cumulative dividends in cash or shares at the
      rate of 7% per annum payable semiannually beginning in the year 2007, and which
      is convertible into one share of the Common Stock, and (b) a five-year warrant
      to acquire shares of our Common Stock, equal to 25% of the investor&#8217;s
      subscription amount divided by $0.85, with an exercise price of $1.00 share.
      Each full share of the Series C Stock was purchased for $50,000, with fractional
      shares of series C preferred stock being purchased by investments of less than
      $50,000. In connection with this private placement, we employed Midtown Partners
      &amp; Co., LLC to serve as the placement agent with respect to investors
      investing $1,000,000 in this offering. As compensation for services rendered
      to
      the Company, we agreed to (i) pay Midtown a cash fee equal to 5% of the amount
      of cash proceeds we received from the investors Midtown solicited; and (ii)
      issue to Midtown warrants to purchase 62,500 shares of our Common Stock. The
      warrants issued to Midtown are exercisable for a period of five years from
      their
      issuance and have an exercise price of $1.00 per share. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      management and larger stockholders exercise significant control over our Company
      and may approve or take actions that may be adverse to your
      interests.</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January&#160;31,
      2007, our named executive officers, directors and 5% stockholders beneficially
      owned approximately 25.85% of our voting power. For the foreseeable future,
      to
      the extent that our current stockholders vote similarly, they will be able
      to
      exercise control over many matters requiring approval by the board of directors
      or our stockholders. As a result, they will be able to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
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          <tr valign="top" style="line-height: 1.25;">
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            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">control
                the composition of our board of
                directors;</font></div>
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      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">control
                our management and policies;</font></div>
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          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determine
                the outcome of significant corporate transactions, including changes
                in
                control that may be beneficial to stockholders;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">act
                in each of their own interests, which may conflict with, or be different
                from, the interests of each other or the interests of the other
                stockholders.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Use">USE</a>
      OF PROCEEDS</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      will
      not receive any of the proceeds from the sale of the Shares by the Selling
      Stockholders. The Selling Stockholders will pay any underwriting discounts,
      commissions and expenses for brokerage, or any other expenses they incur in
      disposing of the Shares. We will bear all other costs, fees and expenses
      incurred in effecting the registration of the Shares covered by this
      Prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Sell">SELL</a>ING
        STOCKHOLDERS</strong></font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Prospectus relates to Shares that are being registered for reoffers and resales
      by Selling Stockholders who have acquired (or, in some cases, may acquire)
      Shares pursuant to the 1999 Plan. Non-affiliates holding less than 1,000
      Restricted Shares issued under the 1999 Plan and who are not named below may
      use
      this Prospectus for the offer or sale of those Shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
      ownership is determined in accordance with the rules of the Commission, is
      based
      upon 11,754,015 shares outstanding as of March&#160;16, 2007, and generally
      includes voting or investment power with respect to securities. Options to
      purchase shares of Common Stock that are currently exercisable or exercisable
      within 60 days of March&#160;16, 2007 are deemed to be outstanding and to be
      beneficially owned by the person holding such options for the purpose of
      computing the percentage ownership of such person but are not treated as
      outstanding for the purpose of computing the percentage ownership of any other
      person. Information regarding the Selling Stockholders, including the number
      of
      Shares offered for sale, will be set forth in a prospectus supplement to the
      extent required. Of the 1,680,750 shares listed below covered by this
      Prospectus, 165,000 shares are restricted shares that have been acquired by
      the
      Selling Stockholders pursuant to the 1999 Plan, and 1,515,750 shares are shares
      to be issued upon exercise of outstanding options issued pursuant to the 1999
      Plan, and are being registered for reoffers and resales by the Selling
      Stockholders named in the table below. The Selling Stockholders may resell
      all,
      a portion, or none of the Shares from time to time. Certain unnamed
      non-affiliates, each of whom may sell up to 1,000 shares of common stock
      issuable upon the exercise of options granted by the 1999 Plan, may use this
      reoffer prospectus for reoffers and resales.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      address of each stockholder listed below is care of Chembio Diagnostics, Inc.,
      3661 Horseblock Road, Medford, New York 11763. The following table sets forth
      the name and relationship to the Company of each Selling Stockholder and: (1)
      the number of shares of Common Stock which each Selling Stockholder beneficially
      owned as of March 16, 2007 (which includes options exercisable within 60 days
      of
      March 16, 2007); (2) the number of shares of Common Stock that each Selling
      Stockholder may offer pursuant to this Prospectus (including shares that may
      be
      issued upon exercise of options); and (3) (if one percent or more) the
      percentage of the class to be beneficially owned by such stockholder assuming
      the sale of all shares offered pursuant to this Prospectus.</font></div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" width="60%">

          <tr>
            <td valign="bottom" width="15%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Selling
                Stockholder</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares
                Beneficially Owned</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares
                Covered Under this Prospectus</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percent
                Beneficially Owned After the Resale</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benway,
                Leon H.</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employee</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,500
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,500
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brandi,
                Louis V.</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employee</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,500
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,500
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bruce,
                Richard A.</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">VP</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125,500
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">120,000
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Carus,
                Alan</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="top" width="7%">
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            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="top" width="10%">
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                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dang,
                Kim T.</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="7%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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                Rena</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="7%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="top" width="7%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CFO</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="7%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
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            <td align="left" valign="top" width="7%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="right" valign="top" width="10%">
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            <td align="left" valign="top" width="7%">&#160;</td>
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            <td align="right" valign="top" width="10%">
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                </strong></font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Plan">PLAN</a>
      OF DISTRIBUTION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Shares covered by this Prospectus are being registered by us for the account
      of
      the Selling Stockholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Shares offered by this Prospectus may be sold from time to time directly by
      or
      on behalf of the Selling Stockholders in one or more transactions on the OTC
      Bulletin Board or on any stock exchange on which the Common Stock may be listed
      at the time of sale, in privately negotiated transactions, or through a
      combination of these methods. The Selling Stockholders may sell Shares through
      one or more agents, brokers or dealers or directly to purchasers. These brokers
      or dealers may receive compensation in the form of commissions, discounts or
      concessions from the Selling Stockholders and/or purchasers of the Shares,
      or
      both. Compensation as to a particular broker or dealer may be in excess of
      customary commissions. The Selling Stockholders will act independently of us
      in
      making decisions with respect to the timing, manner and size of each sale or
      non-sale related transfer. If a Selling Stockholder is an employee, officer
      or
      director of the Company, he or she will be subject to our policies concerning
      trading and other transactions in the Company&#8217;s securities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      Selling Stockholder of the Shares and any of their pledgees, assignees and
      successors-in-interest may, from time to time, sell any or all of their Shares
      on any stock exchange, market or trading facility on which the shares are traded
      or in private transactions. These sales may be at fixed or negotiated prices.
      A
      Selling Stockholder may use any one or more of the following methods when
      selling the Shares:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
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            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
                exchange distribution in accordance with the rules of the applicable
                exchange;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">privately
                negotiated transactions;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">settlement
                of short sales entered into after the date of this
                Prospectus;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                combination of any such methods of
                sale;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or otherwise;
                or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                other method permitted pursuant to applicable
                law.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this Prospectus. There is no assurance
      that
      the Selling Stockholders will sell all or a portion of the stock being offered
      hereby.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the sale of Shares, the Selling Stockholders may enter into
      hedging transactions with broker-dealers or other financial institutions, which
      may in turn engage in short sales of the Shares in the course of hedging the
      positions they assume. The Selling Stockholders may also sell the Shares short
      and deliver these Shares to close out short positions, or loan or pledge the
      Shares to broker-dealers or other financial institutions that in turn may sell
      these Shares. The Selling Stockholders may also enter into option or other
      transactions with broker-dealers or other financial institutions that require
      the delivery to the broker-dealer or other financial institution of the Shares,
      which the broker-dealer or other financial institution may resell pursuant
      to
      this Prospectus, or enter into transactions in which a broker-dealer makes
      purchases as a principal for resale for its own account or through other types
      of transactions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the sales, a Selling Stockholder and any participating broker
      or
      dealer may be deemed to be &#8220;underwriters&#8221; within the meaning of the Securities
      Act, and any commissions they receive and the proceeds of any sale of Shares
      may
      be deemed to be underwriting discounts or commissions under the Securities
      Act.
      A Selling Stockholder who is deemed to be an &#8220;underwriter&#8221; within the meaning of
      Section&#160;2(11) of the Securities Act will be subject to the prospectus
      delivery requirements of the Securities Act. The Selling Stockholders and any
      other person participating in such distribution will be subject to applicable
      provisions of the Exchange Act and the rules and regulations thereunder,
      including, without limitation, Regulation M. Regulation M may limit the timing
      of purchases and sales of shares of our Common Stock by the Selling Stockholders
      and any other person. Furthermore, Regulation M may restrict, for a period
      of up
      to five business days prior to the commencement of the distribution, the ability
      of any person engaged in a distribution of shares of our Common Stock to engage
      in market-making activities with respect to these shares. All of the foregoing
      may affect the marketability of shares of our Common Stock and the ability
      of
      any person or entity to engage in market-making activities with respect to
      shares of our Common Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      the
      extent required, the Shares to be sold, the names of the persons selling the
      Shares, the respective purchase prices and public offering prices, the names
      of
      any agent, dealer or underwriter and any applicable commissions or discounts
      with respect to a particular offer will be set forth in an accompanying
      prospectus supplement or, if appropriate, a post-effective amendment to the
      registration statement of which this Prospectus is a part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      bearing all of the fees and expenses relating to the registration of the Shares.
      Any underwriting discounts, commissions or other fees payable to broker-dealers
      or agents in connection with any sale of the Shares will be borne by the Selling
      Stockholders. In order to comply with certain states&#8217; securities laws, if
      applicable, the Shares may be sold in such jurisdictions only through registered
      or licensed brokers or dealers. In certain states, the Shares may not be sold
      unless the Shares have been registered or qualified for sale in such state,
      or
      unless an exemption from registration or qualification is available and is
      obtained and complied with. Sales of the Shares must also be made by the Selling
      Stockholders in compliance with all other applicable state securities laws
      and
      regulations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Selling Stockholders may agree to indemnify any broker-dealer or agent that
      participates in transactions involving sales of the Shares against certain
      liabilities in connection with the offering of the Shares arising under the
      Securities Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      notified the Selling Stockholders of the need to deliver a copy of this
      Prospectus in connection with any sale of the Shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Experts">EXPERTS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      consolidated financial statements as of December&#160;31, 2005 and
      December&#160;31, 2004 and for the years ended December&#160;31, 2005,
      December&#160;31, 2004 and December&#160;31, 2003, incorporated by reference in
      this Prospectus and the related financial statement schedule incorporated by
      reference in this Prospectus have been audited by Lazar, Levine &amp; Felix LLP,
      a registered independent public accounting firm, as stated in its reports
      incorporated by reference herein, and are included in reliance upon the reports
      of such firm given upon its authority as an expert in accounting and auditing.
      The foregoing financial statements have been incorporated by reference herein
      in
      reliance upon such reports given on the authority of such firm as experts in
      accounting and auditing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Legal">LEGAL</a>
      MATTERS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      validity of the Shares being offered hereby has been passed upon for the Company
      by Patton Boggs LLP. A partner of Patton Boggs LLP owns 82,101 shares of Common
      Stock, 1.44731 shares of series A preferred stock (which are convertible into
      72,365 shares of Common Stock) and a warrant to purchase 94,930 shares of our
      Common Stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Incorp">INCORPO</a>RATION
      OF CERTAIN DOCUMENTS BY
      REFERENCE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      disclose important information to you by referring you to documents that we
      have
      previously filed with the Commission or documents we will file with the
      Commission in the future. We hereby incorporate by reference the following
      documents into this Prospectus: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                Annual Report on Form 10-KSB for the fiscal year ended December&#160;31,
                2005, filed with the Commission on March&#160;30, 2006;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                Quarterly Reports on Form 10-QSB for the quarters ended March&#160;31,
                2006 (filed May&#160;12, 2006) and June&#160;30, 2006 (filed
                August&#160;11, 2006); </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                Current Reports on Form 8-K filed February&#160;13, 2007, January&#160;30,
                2007, December&#160;6, 2006 (except for Item 7.01 and Exhibit 99.1
                contained therein); November&#160;15, 2006 (except for Items 2.02 and 7.01
                and Exhibits 99.1 and 99.2 contained therein); October&#160;5, 2006
                (except for Item 7.01 and Exhibits 99.1 and 99.2 contained therein),
                October&#160;5, 2006 (except for Item 7.01 and Exhibit 99.1),
                August&#160;9, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), July&#160;3, 2006 (except for Item 7.01 and Exhibits 99.1, 99.2,
                99.3 and 99.4), June&#160;21, 2006, June&#160;14, 2006, April&#160;24,
                2006, April&#160;21, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), April&#160;6, 2006 and April&#160;4, 2006 (except for Item 7.01
                and Exhibits 99.1 and 99.2) pursuant to Section 13 of the Securities
                Exchange Act of 1934, as amended; and
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                description of our Common Stock set forth in our prospectus filed
                pursuant
                to Rule 424(b) of the Securities Act of 1933 (as amended), filed
                with the
                Commission February&#160;6, 2007, and all amendments and reports filed by
                us to update that description.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
      all documents filed by us with the SEC under Sections 13(a), 13(c), 14 or 15(d)
      of the Securities Exchange Act of 1934, as amended, after the date of this
      Prospectus and before the termination or completion of this offering shall
      be
      deemed to be incorporated by reference into this Prospectus from the respective
      dates of filing of such documents. Any information that we subsequently file
      with the Commission that is incorporated by reference as described above will
      automatically update and supersede any previous information that is part of
      this
      Prospectus. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      written or oral request, we will provide you without charge, a copy of any
      or
      all of the documents incorporated by reference, other than exhibits to those
      documents unless the exhibits are specifically incorporated by reference in
      the
      documents. Please send requests to Chembio Diagnostics, Inc., 3661 Horseblock
      Road, Medford, New York 11763, or call (631)&#160;924-1135.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Disclouser">DISC</a>LOSURE
      OF COMMISSION POSITION OF
      INDEMNIFICATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
      SECURITIES ACT LIABILITIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      directors and officers are indemnified by our bylaws against amounts actually
      and necessarily incurred by them in connection with the defense of any action,
      suit or proceeding in which they are a party by reason of being or having been
      directors or officers of Chembio Diagnostics, Inc. or of our subsidiary. Our
      articles of incorporation provide that none of our directors or officers shall
      be personally liable for damages for breach of any fiduciary duty as a director
      or officer involving any act or omission of any such director or officer.
      Insofar as indemnification for liabilities arising under the Securities Act
      of
      1933, as amended, may be permitted to such directors, officers and controlling
      persons pursuant to the foregoing provisions, or otherwise, we have been advised
      that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Securities Act
      and
      is, therefore, unenforceable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      event that a claim for indemnification against such liabilities, other than
      the
      payment by Chembio Diagnostics, Inc. of expenses incurred or paid by such
      director, officer or controlling person in the successful defense of any action,
      suit or proceeding, is asserted by such director, officer or controlling person
      in connection with the securities being registered, we will, unless in the
      opinion of counsel the matter has been settled by controlling precedent, submit
      to a court of appropriate jurisdiction the question whether such indemnification
      by it is against public policy as expressed in the Securities Act and will
      be
      governed by the final adjudication.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NO
      DEALER, SALESMAN OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION
      OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS,
      AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED
      UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY SELLING STOCKHOLDER.
      NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL,
      UNDER
      ANY CIRCUMSTANCES, IMPLY THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE
      COMPANY OR THAT THE INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT
      TO
      THE DATE AS OF WHICH SUCH INFORMATION IS GIVEN. THIS PROSPECTUS DOES NOT
      CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY ANY OF
      THE
      SECURITIES OFFERED HEREBY TO ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER
      OR
      SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
      SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANYONE TO WHOM IT IS UNLAWFUL
      TO
      MAKE SUCH OFFER OR SOLICITATION.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div align="center">
          <table cellpadding="0" cellspacing="0" width="55%">

              <tr>
                <td align="right" valign="top" width="50%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TABLE
                    OF CONTENTS</font></div>
                </td>
                <td align="right" valign="top" width="5%">&#160;</td>
              </tr>
              <tr>
                <td valign="top" width="50%">&#160;</td>
                <td valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Page</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Where">WHERE
                    YOU CAN FIND ADDITIONAL
                    INFORMATION</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Spec">SPECIAL
                    NOTE REGARDING FORWARD-LOOKING
                    STATEMENTS</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Sum">SUMMARY</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Risk">RISK
                    FACTORS</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Use">USE
                    OF PROCEEDS</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Sell">SELLING
                    STOCKHOLDERS</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Plan">PLAN
                    OF DISTRIBUTION</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Experts">EXPERTS</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Experts">LEGAL
                    MATTERS</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Incorp">INCORPORATION
                    OF CERTAIN DOCUMENTS BY
                    REFERENCE</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="50%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Disclouser">Disclosure
                    of Commission Position of Indemnification
                    for Securities Act Liabilities</a></font></div>
                </td>
                <td align="left" valign="top" width="5%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CHEMBIO
      DIAGNOSTICS, INC. HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
      WASHINGTON, D.C., A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WITH RESPECT
      TO THE SHARES OFFERED HEREBY. THIS PROSPECTUS OMITS CERTAIN INFORMATION
      CONTAINED IN THE REGISTRATION STATEMENT. THE INFORMATION OMITTED MAY BE OBTAINED
      FROM THE SECURITIES AND EXCHANGE COMMISSION UPON PAYMENT OF THE REGULAR CHARGE
      THEREFORE.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,680,750
      SHARES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CHEMBIO
      DIAGNOSTICS, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">COMMON
      STOCK</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REOFFER
      PROSPECTUS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March&#160;23,
      2007</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
      II</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      3. INCORPORATION OF DOCUMENTS BY REFERENCE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      hereby
      incorporate by reference the following documents into this Registration
      Statement: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                Annual Report on Form 10-KSB for the fiscal year ended December&#160;31,
                2005, filed with the Commission on March&#160;30, 2006;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                Quarterly Reports on Form 10-QSB for the quarters ended March&#160;31,
                2006 (filed May&#160;12, 2006) and June&#160;30, 2006 (filed
                August&#160;11, 2006); </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                Current Reports on Form 8-K filed February&#160;13, 2007, January&#160;30,
                2007, December&#160;6, 2006 (except for Item 7.01 and Exhibit 99.1
                contained therein); November&#160;15, 2006 (except for Items 2.02 and 7.01
                and Exhibits 99.1 and 99.2 contained therein); October&#160;5, 2006
                (except for Item 7.01 and Exhibits 99.1 and 99.2 contained therein),
                October&#160;5, 2006 (except for Item 7.01 and Exhibit 99.1),
                August&#160;9, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), July&#160;3, 2006 (except for Item 7.01 and Exhibits 99.1, 99.2,
                99.3 and 99.4), June&#160;21, 2006, June&#160;14, 2006, April&#160;24,
                2006, April&#160;21, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), April&#160;6, 2006 and April&#160;4, 2006 (except for Item 7.01
                and Exhibits 99.1 and 99.2) pursuant to Section 13 of the Securities
                Exchange Act of 1934, as amended; and
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                description of our Common Stock set forth in our prospectus filed
                pursuant
                to Rule 424(b) of the Securities Act of 1933 (as amended), filed
                with the
                Commission February&#160;6, 2007, and all amendments and reports filed by
                us to update that description.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      documents we file pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
      Exchange Act subsequent to the date hereof and prior to the filing of a
      post-effective amendment that indicates that all securities offered have been
      sold or that deregisters all securities then remaining unsold shall be deemed
      to
      be incorporated by reference into this Registration Statement and to be part
      hereof from the date of filing of such documents. Any statement contained in
      a
      document incorporated or deemed to be incorporated by reference herein shall
      be
      deemed to be modified or superseded for purposes of this</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
      Statement to the extent that a statement contained herein or in any other
      subsequently filed document which also is or is deemed to be incorporated by
      reference herein modifies or supersedes such statement. Any such statement
      so
      modified or superseded shall not be deemed, except as so modified or superseded,
      to constitute a part hereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      4. DESCRIPTION OF SECURITIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      incorporate by reference herein the description of our securities set forth
      in
      our prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933
      (as amended), filed on February&#160;6, 2007, File
      No.&#160;333-138266.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      5. INTEREST OF NAMED EXPERTS AND COUNSEL</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      validity of the common stock covered by this Registration Statement has been
      passed upon for the Company by Patton Boggs LLP. A partner of Patton Boggs
      LLP
      owns 82,101 shares of common stock, 1.44731 shares of series A preferred stock
      (which are convertible into 72,365 shares of common stock) and a warrant to
      purchase 94,930 shares of our common stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">18</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      6. INDEMNIFICATION OF DIRECTORS AND OFFICERS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      articles of incorporation provide for the indemnification of the directors,
      officers, employees and agents of the Company to the fullest extent permitted
      by
      the laws of the State of Nevada. Section 78.7502 of the Nevada General
      Corporation Law permits a corporation to indemnify any of its directors,
      officers, employees or agents against expenses actually and reasonably incurred
      by such person in connection with any threatened, pending or completed action,
      suit or proceeding, whether civil, criminal, administrative or investigative
      (except for an action by or in right of the corporation) by reason of the fact
      that such person is or was a director, officer, employee or agent of the
      corporation, provided that it is determined that such person acted in good
      faith
      and in a manner which he reasonably believed to be in, or not opposed to, the
      best interests of the corporation and, with respect to any criminal action
      or
      proceeding, had no reasonable cause to believe his conduct was unlawful.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
      78.751 of the Nevada General Corporation Law requires that the determination
      that indemnification is proper in a specific case must be made by (a) the
      stockholders, (b) the board of directors by majority vote of a quorum consisting
      of directors who were not parties to the action, suit or proceeding or (c)
      independent legal counsel in a written opinion (i) if a majority vote of a
      quorum consisting of disinterested directors is not possible or (ii) if such
      an
      opinion is requested by a quorum consisting of disinterested directors.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      (the
&#8220;Securities Act&#8221;) may be permitted to directors, officers and controlling
      persons of the registrant pursuant to the foregoing provisions, or otherwise,
      the registrant has been advised that in the opinion of the Securities and
      Exchange Commission such indemnification is against public policy as expressed
      in the Securities Act and is, therefore, unenforceable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      7. EXEMPTION FROM REGISRTATION CLAIMED</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      8. EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following documents are filed as exhibits to this Registration
      Statement:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Number</u></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1999
      Equity Incentive Plan (<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
      by reference to the <a href="http://www.sec.gov/Archives/edgar/data/1092662/000107878205000166/chembiodef14a.htm">Registrant's
      Proxy Statement filed with the Commission on May 11,
      2005</a></font>.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex5_1.htm">Opinion
      and Consent of Patton Boggs LLP</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex23_1.htm">Consent
      of Lazar Levine and Felix LLP</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Patton Boggs LLP (<a href="ex5_1.htm">included in Exhibit
      5.1</a>)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
      of
      Attorney (included on signature page hereto)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">19</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      9. UNDERTAKINGS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      registrant hereby undertakes:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      file,
      during any period in which offers or sales are being made, a post-effective
      amendment to this Registration Statement to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Include
                any prospectus required by Section 10(a)(3) of the Securities
                Act;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflect
                in the prospectus any facts or events arising after the effective
                date of
                the Registration Statement (or the most recent post-effective amendment
                thereof) which, individually or in the aggregate, represent a fundamental
                change in the information in the Registration Statement. Notwithstanding
                the foregoing, any increase or decrease in volume of securities offered
                (if the total dollar value of securities offered would not exceed
                that
                which was registered) and any deviation from the low or high end
                of the
                estimated maximum offering range may be reflected in the form of
                prospectus filed with the Commission pursuant to Rule 424(b) if,
                in the
                aggregate, the changes in volume and price represent no more than
                a 20%
                change in the maximum aggregate offering price set forth in the
                &#8220;Calculation of Registration Fee&#8221; table in the effective registration
                statement.</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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          <tr valign="top" style="line-height: 1.25;">
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            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></div>
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                any material information with respect to the plan of distribution
                not
                previously disclosed in the Registration Statement or any material
                change
                to such information in the Registration
                Statement;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provided,
      however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the
      Registration Statement is on Form S-8 and the information required to be
      included in a post-effective amendment by those paragraphs is contained in
      periodic reports filed with or furnished to the Commission by the registrant
      pursuant to Section 13 or 15(d) of the Exchange Act that are incorporated by
      reference to the Registration Statement.</font></div>
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      for
      the purpose of determining any liability under the Securities Act, each such
      post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering
      thereof.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
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      being registered which remain unsold at the termination of the
      offering.</font></div>
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      undersigned registrant hereby undertakes that, for purposes of determining
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      liability under the Securities Act, each filing of the registrant&#8217;s annual
      report pursuant to Section 13(a) or 15(d) of the Exchange Act that is
      incorporated by reference in the Registration Statement shall be</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">deemed
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      the offering of such securities at that time shall be deemed to be the initial
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
      as indemnification for liabilities arising under the Securities Act may be
      permitted to the directors, officers and controlling persons of the registrant
      pursuant to the foregoing provision, or otherwise, the registrant has been
      advised that in the opinion of the Commission such indemnification is against
      public policy as expressed in the Securities Act and is, therefore,
      unenforceable. In the event that a claim for indemnification against such
      liabilities (other than the payment by the registrant of expenses incurred
      or
      paid by a director, officer or controlling person of the registrant in the
      successful defense of any action, suit, or proceeding) is asserted by such
      director, officer or controlling person in connection with the securities being
      registered, the registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act and will be governed by final
      adjudication of such issue.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">20</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Act, the registrant certifies that it
      has
      reasonable grounds to believe that its meets all of the requirements for filing
      on Form S-8 and has duly caused this Registration Statement to be signed on
      its
      behalf by the undersigned, thereunto duly authorized, in the city of Medford,
      State of New York, on this 23rd day of March&#160;2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 144pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CHEMBIO
      DIAGNOSTICS, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 144pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lawrence
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    <div>&#160;</div>
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      person whose signature appears below appoints Lawrence A. Siebert, individually,
      as true and lawful attorneys-in-fact and agents, with full power of substitution
      to sign any amendments (including post-effective amendments) to this
      Registration Statement and to each registration statement amended hereby, and
      to
      file the same, with all exhibits and other related documents, with the
      Commission, with full power and authority to perform any necessary or
      appropriate act in connection with the amendment(s). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
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      indicated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="40%">

          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;/s/
                Lawrence A. Siebert </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March&#160;23,
                2007</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Lawrence
                A. Siebert</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;President,
                Chief Executive Officer and Chairman of the Board</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(Principal
                Executive Officer)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;/s/
                Richard J. Larkin </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March&#160;23,
                2007</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Richard
                J. Larkin</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Chief
                Financial Officer</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
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            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="25%" style="border-bottom: black thin solid;">
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            <td align="left" valign="top" width="11%">
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            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
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            <td align="left" valign="top" width="25%">
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            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="25%">
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                Director</font></div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                </font></div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="25%" style="border-bottom: black thin solid;">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March&#160;23,
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            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                Dr.&#160;Gary Meller</font></div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Director</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>

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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">21</font></div>
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      INDEX</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Number</u></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1999
      Equity Incentive Plan (Incorporated by reference to the Company&#8217;s annual report
      on Form 10-KSB filed with the Commission on March&#160;31, 2005.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
      and Consent of Patton Boggs LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Lazar Levine and Felix LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Patton Boggs LLP (included in Exhibit 5.1)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
      of
      Attorney (included on signature page hereto)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">22</font><br></div>
    <div>
      <hr style="COLOR: black" align="center" noshade size="2" width="100%">
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[{"type": "S-8", "sequence": "1", "filename": "form_s8.htm", "description": "FORM S-8 TO REGISTER 1999 PLAN", "secsgml_size_bytes": 340434}]
{"company-data": {"conformed-name": "CHEMBIO DIAGNOSTICS, INC.", "cik": "0001092662", "assigned-sic": "2834", "irs-number": "880425691", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-141555", "film-number": "07716116"}, "business-address": {"street1": "3661 HORSEBLOCK ROAD", "city": "MEDFORD", "state": "NY", "zip": "11763", "phone": "(631) 924-1135"}, "mail-address": {"street1": "3661 HORSEBLOCK ROAD", "city": "MEDFORD", "state": "NY", "zip": "11763"}, "former-company": [{"former-conformed-name": "Chembio Diagnostics Inc.", "date-changed": "20040607"}, {"former-conformed-name": "TRADING SOLUTIONS COM INC", "date-changed": "19990805"}]}
Form S-8 to Register 1999 Plan
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      S-8
REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933
Chembio
      Diagnostics, Inc.
(Exact
      Name of Registrant as Specified in its Charter)
Nevada
88-0425691
(State
                or Other Jurisdiction of
Incorporation
                or Organization)
(I.R.S.
                Employer
Identification
                Number)
3661
      Horseblock Road
Medford,
      New York 11763
(631)
      924-1135
(Address,
      Including Zip Code, and Telephone Number, Including Area Code, of Registrant's
      Principal Executive Offices)
1999
      Equity Incentive Plan
(Full
      Name of Plan)
Lawrence A.
      Siebert
3661
      Horseblock Road
Medford,
      New York 11763
(631)
      924-1135
(Name,
      Address, Including Zip Code, and Telephone Number, Including Area Code, of
      Agent
      for Service)
Copy
      to:
Alan
      Talesnick, Esq.
James
      J. Muchmore, Esq.
Patton
      Boggs LLP
1660
      Lincoln Street, Suite 1900
Denver,
      Colorado 80264
(303)
      830-1776
CALCULATION
      OF REGISTRATION FEE
Title
                of Securities to be Registered
Amount
                to be Registered (1)
Proposed
                Maximum Offering Price per Share (2)
Proposed
                Maximum Aggregate Offering Price (2)
Amount
                of Registration Fee (2)
Common
                Stock, par value $.01 per share (3)
1,515,750
$0.68
$1,030,710
$
                31.64
Common
                Stock, par value $.01 per share (4)
165,000
$0.68
$112,200
$
                3.45
Common
                Stock, par value $.01 per share (5)
1,319,250
$0.68
$897,090
$
                27.54
Total
                (6):
3,000,000
$0.68
$2,040,000
$
                62.63
(1)
Pursuant
                to Rule 416 under the Securities Act of 1933, as amended, this
                Registration Statement shall also cover additional shares of Common
                Stock
                that may become issuable by reason of any stock split, stock dividend,
                recapitalization or other similar transactions effected without
                consideration that results in an increase in the number of the
                Registrant's shares of outstanding Common Stock. In addition, this
                Registration Statement covers the resale by certain Selling Stockholders
                named in the Prospectus included in and filed with this Form S-8 of
                certain of the shares of the Registrant's Common Stock subject to this
                Registration Statement, for which no additional registration fee
                is
                required pursuant to Rule 457(h)(3).
(2)
Solely
                for the purpose of calculating the registration fee, the offering
                price
                per share and the aggregate offering price have been calculated pursuant
                to Rules 457(c) and 457(h) of the Securities Act of 1933, as amended,
                computed on the basis of the market value of the shares of Common
                Stock on
                March 16, 2007 estimated in accordance with Rule 457(c).
(3)
Represents
                shares underlying outstanding options granted under the 1999 Equity
                Incentive Plan.
(4)
Represents
                restricted shares previously issued upon exercise of options granted
                under
                the 1999 Equity Incentive Plan.
(5)
Represents
                shares available for future grants under the 1999 Equity Incentive
                Plan.
(6)
Represents
                total restricted shares previously issued upon excercise of options,
                shares underlying options granted, and shares available for grant,
                of
                3,000,000 under the 1999 Equity Incentive
                Plan.
EXPLANATORY
      NOTE
This
      Registration Statement on Form S-8 (this "Registration Statement") registers
      shares of common stock, par value $0.01 per share, of Chembio Diagnostics,
      Inc.
      (the "Company"), consisting of (i) shares previously issued upon the exercise of
      options granted under the Company's 1999 Equity Incentive Plan (the "1999
      Plan"); (ii) shares that will be issued, upon the exercise of options granted
      under the 1999 Plan; and (iii) shares available to be issued under the 1999
      Plan.
This
      Registration Statement contains two parts. First, the materials that follow
      Part
      I of this Registration Statement on Form S-8 (this "Registration Statement") up
      to Part II of this Registration Statement constitute the reoffer prospectus,
      prepared in accordance with Part I of Form S-3, in accordance with General
      Instruction C of Form S-8 (the "Prospectus"). The Prospectus permits reoffers
      and resales of those shares referred to above that constitute "restricted
      securities" or "control securities", within the meaning of Form S-8, by certain
      of the Company's stockholders, as more fully set forth therein. The second part
      contains information required to be set forth in the registration statement
      pursuant to Part II of Form S-8.
PART
      I
INFORMATION
      REQUIRED IN THE SECTION 10(a) PROSPECTUS
The
      documents containing the information required by Part I of this Registration
      Statement will be sent or given to our employees, officers and directors, as
      specified by Rule 428(b)(1) under the Securities Act of 1933, as amended (the
      "Securities Act"). Those documents do not need to be filed with the Securities
      and Exchange Commission (the "Commission") either as part of this Registration
      Statement or as prospectuses or prospectus supplements pursuant to Rule 424
      under the Securities Act. These documents and the documents incorporated by
      reference in this Registration Statement pursuant to Item 3 of Part II of this
      Registration Statement, taken together, constitute a prospectus that meets
      the
      requirement of Section 10(a) of the Securities Act. The Company will provide
      without charge to any person, upon written or oral request of such person,
      a
      copy of each document incorporated by reference in Item 3 of Part II of this
      Registration Statement (which documents are incorporated by reference in the
      Prospectus as set forth in Form S-8), other than exhibits to such documents
      that
      are not specifically incorporated by reference, the other documents required
      to
      be delivered to eligible employees pursuant to Rule 428(b) under the Securities
      Act and additional information about the 1999 Plan. Requests should be directed
      to the Company's Secretary at 3661 Horseblock Road, Medford, New York
      11763.
REOFFER
      PROSPECTUS
CHEMBIO
      DIAGNOSTICS, INC.
1,680,750
      SHARES OF COMMON STOCK
Acquired
      or to be Acquired by the Selling Stockholders Under
1999
      Equity Incentive Plan
This
      reoffer prospectus (this "Prospectus") relates to an aggregate of up to
      1,680,750 shares (the "Shares") of common stock, par value $0.01 per share (the
"Common Stock"), of Chembio Diagnostics, Inc., a Nevada corporation (the
"Company"), consisting of 165,000 outstanding restricted shares and 1,515,750
      shares issuable upon exercise of currently outstanding options, which may be
      offered and sold from time to time by certain stockholders of the Company (the
      "Selling Stockholders") who have acquired or will acquire such Shares pursuant
      to the Company's 1999 Equity Incentive Plan (the "1999 Plan"). See "Selling
      Stockholders".
This
      Prospectus covers the offering for resale of (i) shares acquired by the Selling
      Stockholders prior to the filing of the Registration Statement on Form S-8
      of which this Prospectus is a part; (ii) shares to be acquired by the Selling
      Stockholders upon an exercise of currently outstanding options ((i) and (ii)
      collectively referred to as the "Restricted Shares"); and (iii) shares to
      be acquired by Selling Stockholders who may be deemed affiliates of the Company
      after the filing of a Registration Statement on Form S-8 pursuant to options
      currently held by those Selling Stockholders ("Control Shares").
Shares
      acquired pursuant to the 1999 Plan prior to the effective date of a registration
      statement covering securities issued under the 1999 Plan are "restricted
      securities" pursuant to Rule 144, whether or not held by affiliates of the
      Company. This Prospectus has been prepared for the purpose of registering the
      shares under the Securities Act to allow for future sales by the Selling
      Stockholders, on a continuous or delayed basis, to the public without
      restriction. The Selling Stockholders may offer for their own account these
      Shares for resale from time to time.
The
      Selling Stockholders may sell the Shares covered by this Prospectus through
      various means, including directly or indirectly to purchasers, in one or more
      transactions on any stock market on which the Shares are traded at the time
      of
      sale, in privately negotiated transactions, or through a combination of these
      methods. Each Selling Stockholder that sells any Shares pursuant to this
      Prospectus may be deemed to be an "underwriter" within the meaning of the
      Securities Act of 1933, as amended (the "Securities Act"). Any commissions
      received by a broker or dealer in connection with resales of shares may be
      deemed to be underwriting commissions or discounts under the Securities Act.
      For
      additional information on the Selling Stockholders' possible methods of sale,
      you should refer to the section in this Prospectus entitled "Plan of
      Distribution."
We
      will
      not receive any proceeds from the sale of the Shares being offered by the
      Selling Stockholders. We will pay all of the expenses associated with this
      Prospectus. Brokerage commissions and similar selling expenses, if any,
      attributable to the offer or sale of the Shares will be borne by the Selling
      Stockholder.
Our
      Common Stock is quoted on the OTC Bulletin Board under the symbol "CEMI." On
      March 16, 2007, the closing bid price of our Common Stock on such market
      was $0.68 per share.
This
      investment involves a high degree of risk.
Please
      see "Risk Factors" beginning on page 3 of this
      Prospectus.
Neither
      the Securities and Exchange Commission nor any state securities commission
      has
      approved or disapproved of these securities or determined whether this
      Prospectus is truthful or complete. Any representation to the contrary is a
      criminal offense.
The
      date
      of this Prospectus is March 23, 2007.
TABLE
                  OF CONTENTS
Page
WHERE
                  YOU CAN FIND ADDITIONAL
                  INFORMATION
1
SPECIAL
                  NOTE REGARDING FORWARD-LOOKING
                  STATEMENTS
1
SUMMARY
2
RISK
                  FACTORS
3
USE
                  OF PROCEEDS
11
SELLING
                  STOCKHOLDERS
12
PLAN
                  OF DISTRIBUTION
13
EXPERTS
15
LEGAL
                  MATTERS
15
INCORPORATION
                  OF CERTAIN DOCUMENTS BY
                  REFERENCE
15
Disclosure
                  of Commission Position of Indemnification
                  for Securities Act Liabilities
16
You
      should only rely on the information incorporated by reference or provided in
      this Prospectus or any supplement. We have not authorized anyone else to provide
      you with different information. The Common Stock is not being offered in any
      state where the offer is not permitted. You should not assume that the
      information in this Prospectus or any supplement is accurate as of any date
      other than the date on the front of this Prospectus.
WHERE
YOU CAN FIND ADDITIONAL INFORMATION
The
      Company is subject to the information requirements of the Securities Exchange
      Act of 1934, as amended (the "Exchange Act"), and, in accordance therewith,
      files reports, proxy statements and other information with the Securities and
      Exchange Commission (the "Commission"). The reports, proxy statements and other
      information filed by the Company with the Commission can be inspected and copied
      at the Public Reference Room of the Commission at 100 F Street, N.E.,
      Washington, D.C. 20549. Copies of such material also may be obtained by mail
      from the Public Reference Room of the Commission, 100 F Street, N.E.,
      Washington, D.C. 20549, at prescribed rates. Information regarding the operation
      of the Public Reference Room may be obtained by calling the Commission at
      1-800-SEC-0330. Additionally, the Commission maintains an Internet site that
      contains reports, proxy and information statements and other information
      regarding registrants that file electronically with the Commission and that
      is
      located at http://www.sec.gov.
This
      Prospectus constitutes part of a Registration Statement on Form S-8 filed on
      the
      date hereof (herein, together with all amendments and exhibits, referred to
      as
      the "Registration Statement") by the Company with the Commission under the
      Securities Act. This Prospectus does not contain all of the information set
      forth in the Registration Statement, certain parts of which are omitted in
      accordance with the rules and regulations of the Commission. For further
      information with respect to the Company and the Common Stock, reference is
      hereby made to the Registration Statement. Statements contained herein
      concerning the provisions of any contract, agreement or other document are
      not
      necessarily complete, and in each instance reference is made to the copy of
      such
      contract, agreement or other document filed as an exhibit to the Registration
      Statement or otherwise filed with the Commission. Each such statement is
      qualified in its entirety by such reference. Copies of the Registration
      Statement together with exhibits may be inspected at the offices of the
      Commission as indicated above without charge and copies thereof may be obtained
      therefrom upon payment of a prescribed fee.
SPEC
IAL
      NOTE REGARDING FORWARD-LOOKING
      STATEMENTS
This
Prospectus
      contains forward-looking statements that may be affected by matters outside
      our
      control that could cause materially different results.
Some
      of
      the information in this Prospectus contains forward-looking statements within
      the meaning of Section 27A of the Securities Act of 1933. These statements
      express, or are based on, our expectations about future events. Forward-looking
      statements give our current expectations or forecasts of future events.
      Forward-looking statements generally can be identified by the use of
      forward-looking terminology, such as, "may," "will," "expect," "intend,"
"project," "estimate," "anticipate," "believe" or "continue" or the negative
      thereof or similar terminology. They include statements regarding
      our:
·
financial
                position;
·
business
                strategy;
·
budgets;
·
amount,
                nature and timing of capital
                expenditures;
·
acquisition
                risks;
·
operating
                costs and other expenses; and
·
cash
                flow and anticipated liquidity.
Although
      we believe the expectations and forecasts reflected in these and other
      forward-looking statements are reasonable, we can give no assurance they will
      prove to have been correct. They can be affected by inaccurate assumptions
      or by
      known or unknown risks and uncertainties. Factors that could cause actual
      results to differ materially from expected results are described under "Risk
      Factors" and include:
1
·
general
                economic conditions;
·
currency
                exchange volatility;
·
the
                risks associated with acquiring and integrating new
                businesses;
·
our
                ability to generate sufficient cash flows to
                operate;
·
availability
                of capital;
·
the
                strength and financial resources of our
                competitors;
·
regulatory
                risks and developments;
·
our
                ability to find and retain skilled personnel;
                and
·
the
                lack of liquidity of our Common
                Stock.
Any
      of
      the factors listed above and other factors contained in this Prospectus could
      cause our actual results to differ materially from the results implied by these
      or any other forward-looking statements made by us or on our behalf. We cannot
      assure you that our future results will meet our expectations.
When
      you
      consider these forward-looking statements, you should keep in mind these risk
      factors and the other cautionary statements in this Prospectus. Our
      forward-looking statements speak only as of the date made.
SUM
MARY
The
      following summary is qualified in its entirety by the more detailed information
      and the financial statements and notes thereto appearing elsewhere in, or
      incorporated by reference into, this Prospectus. Consequently, this summary
      does
      not contain all of the information that you should consider before investing
      in
      our Common Stock. You should carefully read the entire Prospectus, including
      the
"Risk Factors" section, and the documents and information incorporated by
      reference into this Prospectus before making an investment
      decision.
This
      Prospectus relates to 1,644,750 shares of our Common Stock, consisting of
      165,000 outstanding restricted shares and 1,479,750 shares issuable upon
      exercise of currently outstanding options, which may be offered for sale from
      time to time by the Selling Stockholders identified in this Prospectus. We
      anticipate that the Selling Stockholders will offer the Shares for sale at
      prevailing market prices on the OTC Bulletin Board on the date of such sale.
      We
      will not receive any proceeds from these sales. We are paying the expenses
      incurred in registering the Shares, but all selling and other expenses incurred
      by each of the Selling Stockholders will be borne by such Selling
      Stockholder.
Chembio
      Diagnostics
Our
      Corporate Information
Chembio
      Diagnostic Systems Inc. was formed in 1985. Since inception we have been
      involved in developing, manufacturing, selling and distributing medical
      diagnostic tests, including rapid tests that detect a number of infectious
      diseases and for pregnancy. On May 5, 2004, Chembio Diagnostic Systems Inc.
      completed a merger through which it became a wholly-owned subsidiary of Chembio
      Diagnostics, Inc., formerly known as Trading Solutions.com, Inc. ("Chembio" or
      the "Company"). As a result of this transaction, the management and business of
      Chembio Diagnostic Systems Inc. became the management and business of the
      Company.
Our
      Business
We
      are a
      developer, manufacturer and marketer of rapid diagnostic tests that detect
      infectious diseases. Our main products presently commercially available are
      three rapid tests for the detection of HIV antibodies in whole blood, serum
      and
      plasma samples, two of which were approved by the FDA last year. These products
      employ single path lateral flow technology which we have licensed from Inverness
      Medical Innovations, Inc. ("Inverness"), who is also our exclusive marketing
      partner for those two products in the United States under its Clearview®
brand. Inverness launched its marketing of these products in the United States
      in February, 2007. Chembio's two HIV STAT-PAK® rapid HIV tests are marketed
      outside the United States through different partners and channels under license
      from Inverness. We also have a rapid test for Chagas disease (a parasitic
      disease endemic in Latin America) as well as a line of rapid tests for
      tuberculosis, including tests for tuberculosis in animals for which USDA
      approval is pending.
2
On
      March 13, 2007, we were issued United States patent no. 7,189,522 for
      its Dual Path Platform ("DPP™") rapid test system. We believe that as a result
      of the patent protection we now have with DPP™, we have a significant
      opportunity to develop and license many new rapid tests in a number of fields
      including but not limited to infectious diseases. We have already completed
      initial development on some products in this new platform. We believe the DPP™
provides significant advantages over standard single path lateral flow assays,
      and we are developing most of our new products using this platform.
Our
      products are sold to medical laboratories and hospitals, governmental and public
      health entities, non-governmental organizations, medical professionals and
      retail establishments. Our products are sold either under our STAT-PAK® or
      SURE CHECK® registered trademarks and/or the private labels of our marketing
      partners, such as the Inverness Clearview® label.
We
      have a
      history of losses, and we continue to incur operating and net losses. We have
      non-exclusive licenses to lateral flow patents held by Inverness and Abbott
      Laboratories, Inc., and to reagents including those that are used in our HIV
      rapid tests. These licenses do not necessarily insulate us from patent
      challenges by other patent holders. We have filed applications for two lateral
      flow patents that incorporate features that we believe may further protect
      us
      from patent challenges.
Our
      main
      products are as follows:
·
HIV
                Rapid Tests: HIV 1/2 STAT-PAK® Cassette, HIV 1/2 SURE CHECK® and HIV 1/2
                STAT-PAK® Dipstick;
·
Chagas
                Rapid Test: Chagas STAT-PAK; and
·
Tuberculosis
                (TB): Prima TB STAT-PAK and Veterinary
                products.
We
      also
      are in the process of developing rapid tests employing our patented DPP™
technology including, but not limited to, an oral fluid rapid HIV test and
      a
      human tuberculosis test.
We
      manufacture all of the products we sell. All of these products, as well as
      those
      that are under development, employ various formats of lateral flow technology.
      Lateral flow, whether single or dual path, generally refers to the process
      of a
      sample flowing from the point of application on a test strip to provide a test
      result on a portion of a strip downstream from either the point of application
      of the sample or of another reagent. We believe we have expertise and
      proprietary know-how in the field of lateral flow technology.
Our
      principal executive offices are located at 3661 Horseblock Road, Medford, New
      York 11763. Our telephone number is (631) 924-1135. Our website address is
      www.chembio.com.
RISK
FACTORS
You
      should carefully consider each of the following risk factors and all of the
      other information provided in this Prospectus before purchasing our Common
      Stock. The risks described below are those we currently believe may materially
      affect us. An investment in our Common Stock involves a high degree of risk,
      and
      should be considered only by persons who can afford the loss of their entire
      investment.
3
Risks
      related to our industry, business and strategy
Because
      we may not be able to obtain necessary regulatory approvals for some of our
      products, we may not generate revenues in the amounts we expect, or in the
      amounts necessary to continue our business.
All
      of
      our proposed and existing products are subject to regulation in the U.S. by
      the
      U.S. Food and Drug Administration, the U.S. Department of Agriculture and/or
      other domestic and international governmental, public health agencies,
      regulatory bodies or non-governmental organizations. In particular, we are
      subject to strict governmental controls on the development, manufacture,
      labeling, distribution and marketing of our products. The process of obtaining
      required approvals or clearances varies according to the nature of, and uses
      for, a specific product. These processes can involve lengthy and detailed
      laboratory testing, human or animal clinical trials, sampling activities, and
      other costly, time-consuming procedures. The submission of an application to
      a
      regulatory authority does not guarantee that the authority will grant an
      approval or clearance for product. Each authority may impose its own
      requirements and can delay or refuse to grant approval or clearance, even though
      a product has been approved in another country.
The
      time
      taken to obtain approval or clearance varies depending on the nature of the
      application and may result in the passage of a significant period of time from
      the date of submission of the application. Delays in the approval or clearance
      processes increase the risk that we will not succeed in introducing or selling
      the subject products, and we may determine to devote our resources to different
      products.
Changes
      in government regulations could increase our costs and could require us to
      undergo additional trials or procedures, or could make it impractical or
      impossible for us to market our products for certain uses, in certain markets,
      or at all.
Changes
      in government regulations may adversely affect our financial condition and
      results of operations because we may have to incur additional expenses if we
      are
      required to change or implement new testing, manufacturing and control
      procedures. If we are required to devote resources to develop such new
      procedures, we may not have sufficient resources to devote to research and
      development, marketing, or other activities that are critical to our business.
For
      example, the European Union and other jurisdictions have recently established
      a
      requirement that diagnostic medical devices used to test human biological
      specimens must receive regulatory approval known as a CE mark, or be registered
      under the ISO 13.485 medical device directive. The letters "CE" are the
      abbreviation of the French phrase "Conforme Européene," which means "European
      conformity." ISO ("International Organization for Standardization") is the
      world's largest developer of standards with 148 member countries. As such,
      export to the European and other jurisdictions without the CE or ISO 13.485
      mark
      is not possible. Although we are not currently selling products to countries
      requiring CE marking, we expect that we will do so in the near future in order
      to grow our business. We are in the process of implementing quality and
      documentary procedures in order to obtain CE and ISO 13.485 registration, and
      we
      are not aware of any material reason why such approvals will not be granted.
      However, if for any reason CE or ISO 13.485 registration is not granted, our
      ability to export our products could be adversely impacted.
We
      can
      manufacture and sell our products only if we comply with regulations of
      government agencies such as the FDA and USDA. We have implemented a quality
      system that is intended to comply with applicable regulations. Although FDA
      approval is not required for the export of our products, there are export
      regulations promulgated by the FDA that specifically relate to the export of
      our
      products. Although we believe that we meet the regulatory standards required
      for
      the export of our products, these regulations could change in a manner that
      could adversely impact our ability to export our products.
4
Our
      products may not be able to compete with new diagnostic products or existing
      products developed by well-established competitors, which would negatively
      affect our business.
The
      diagnostic industry is focused on the testing of biological specimens in a
      laboratory or at the point-of-care and is highly competitive and rapidly
      changing. Our principal competitors often have considerably greater financial,
      technical and marketing resources than we do. Several companies produce
      diagnostic tests that compete directly with our testing product line, including
      but not limited to, Orasure Technologies, Inverness Medical and Trinity Biotech.
      As new products enter the market, our products may become obsolete or a
      competitor's products may be more effective or more effectively marketed and
      sold than ours. Although we have no specific knowledge of any competitor's
      product that will render our products obsolete, if we fail to maintain and
      enhance our competitive position or fail to introduce new products and product
      features, our customers may decide to use products developed by competitors,
      which could result in a loss of revenues and cash flow.
We
      are
      developing an oral fluid rapid HIV test as well as other applications utilizing
      our DPP™ technology, which we believe could enhance our competitive position in
      HIV rapid testing and other fields. However, we have not completed development
      of any DPP™ product, and we still have technical, manufacturing, regulatory and
      marketing challenges to meet before we will know whether we can successful
      commercialize products incorporating this technology. There can be no assurance
      that we will overcome these challenges.
We
      have
      granted Inverness exclusive rights to market our SURE CHECK® HIV 1/2 globally
      and our HIV 1/2 STAT PAK® in the U.S. Inverness has no rapid HIV tests that are
      approved for marketing in the U.S., we are not aware of any rapid HIV products
      that Inverness is even contemplating for the U.S., and Inverness is obligated
      to
      inform us of any such products as soon as it is able to do so. Inverness does
      have rapid HIV tests manufactured by certain of its subsidiaries outside the
      U.S. that are being actively marketed outside the U.S., primarily in developing
      countries. Our HIV 1/2 STAT PAK cassette and dipstick products compete against
      these Inverness Products, and we specifically acknowledge in our agreements
      with
      Inverness the existence of such other products. Moreover, except for a product
      in the HIV barrel field as defined in our agreement with Inverness, Inverness
      is
      permitted under our agreements to market certain types of permitted competing
      rapid HIV tests in the U.S. Under these conditions, we could choose to terminate
      the applicable agreement with Inverness or change the agreement to a
      non-exclusive agreement, and Inverness would expand the lateral flow license
      granted to the Company to allow the Company to market the product independently
      or through other marketing partners. While we believe that Inverness is
      committed to successfully marketing our products particularly in the U.S. and
      other developed countries where our products are or become approved for
      marketing, Inverness may choose to develop or acquire competing products for
      marketing in the U.S. as well as other markets where they are marketing our
      SURE
      CHECK HIV 1/2 product, and such an action could have at least a temporary
      material adverse effect on the marketing of these products until such time
      as
      alternative marketing arrangements could be implemented. While we also believe
      that the expansion of our license to the Inverness lateral flow patents
      substantially facilitates our ability to make alternative marketing
      arrangements, there can be no assurance that the modification of marketing
      arrangements and the possible corresponding delays or suspension of sales would
      not have a material adverse effect on our business.
In
      addition, the point-of-care diagnostics industry is undergoing rapid
      technological changes, with frequent introductions of new technology-driven
      products and services. As new technologies become introduced into the
      point-of-care diagnostic testing market, we may be required to commit
      considerable additional efforts, time and resources to enhance our current
      product portfolio or develop new products. We may not have the available time
      and resources to accomplish this and many of our competitors have substantially
      greater financial and other resources to invest in technological improvements.
      We may not be able to effectively implement new technology-driven products
      and
      services or be successful in marketing these products and services to our
      customers, which would materially harm our operating results.
We
      own no
      issued patents covering single path lateral flow technology, and the field
      of
      lateral flow technology is complex and characterized by a substantial amount
      of
      litigation, so the risk of potential patent challenges is ongoing for us in
      spite of our pending patent applications.
5
Although
      we have been granted non-exclusive licenses to lateral flow patents owned by
      Inverness Medical Innovations, Inc. and Abbott Laboratories, Inc., there is
      no
      assurance that their lateral flow patents will not be challenged or that
      licenses from other parties may not be required, if available at all. In the
      event that it is determined that a license is required and it is not possible
      to
      negotiate a license agreement under a necessary patent, we may be able to modify
      our HIV rapid test products and other products such that a license would not
      be
      necessary. However, this alternative could delay or limit our ability to sell
      these products in the U.S. and other markets, which would adversely affect
      our
      results of operations, cash flows and business.
During
      2005 and 2006, we made substantial additions to our intellectual property
      portfolio as a result of the development of a new rapid test platform, Dual
      Path
      Platform (DPP™). This platform has shown improved sensitivity as compared with
      conventional platforms in a number of preliminary studies using well
      characterized HIV, Tuberculosis and other samples. This technology formed the
      basis of two patent applications that we filed, and may result in additional
      applications covering additional uses of this technology platform. On
      March 13, 2007, one of these patent applications was approved by the United
      States Patent & Trademark Office, which issued United States patent
      no. 7,189,522 for our DPP™ rapid test system. Also, we believe that this
      new lateral flow platform is outside of the scope of currently issued patents
      in
      the field of lateral flow technology, thereby offering the possibility of a
      greater freedom to operate. There is no assurance that our patents or our
      products incorporating the patent claims will not be challenged at some time
      in
      the future.
New
      developments in health treatments or new non-diagnostic products may reduce
      or
      eliminate the demand for our products.
The
      development and commercialization of products outside of the diagnostics
      industry could adversely affect sales of our product. For example, the
      development of a safe and effective vaccine to HIV or treatments for other
      diseases or conditions that our products are designed to detect, could reduce,
      or eventually eliminate, the demand for our HIV or other diagnostic products
      and
      result in a loss of revenues.
We
      may not have sufficient resources to effectively introduce and market our
      products, which could materially harm our operating results.
Introducing
      and achieving market acceptance for our rapid HIV tests and other new products
      will require substantial marketing efforts and will require us or our contract
      partners to make significant expenditures. In the U.S. and other developed
      world
      markets where we will begin to market our FDA-approved products through
      Inverness and through other partners, we have no history upon which to base
      market or customer acceptance of these products. In some instances we will
      be
      totally reliant on the marketing efforts and expenditures of our contract
      partners. If they do not have or commit the expertise and resources to
      effectively market the products that we manufacture, our operating results
      will
      be materially harmed.
The
      success of our business depends on our ability to raise additional capital
      through the sale of debt or equity or through borrowing, and we may not be
      able
      to raise capital or borrow funds in amounts necessary to continue our business,
      or at all.
Although
      our revenues and gross margins increased significantly in recent
      periods, we sustained significant operating losses in the first nine months
      of 2006 and the years 2005 and 2004. At September 30, 2006, we had a
      stockholders' deficiency of $898,030, and a working capital surplus of
      $1,836,636. Including the funds received from the Series C 7% Convertible
      Preferred Stock offering, we believe our resources are sufficient to
      fund our needs through the end of 2007. Our liquidity and cash requirements
      will depend on several factors. These factors include: (1) the level of revenue
      growth; (2) the extent to which, if any, that revenue growth improves operating
      cash flows; (3) our investments in research and development, facilities,
      marketing, regulatory approvals and other investments it may determine to make;
      and (4) the investment in capital equipment and the extent to which it improves
      cash flow through operating efficiencies. If our resources are not sufficient
      to
      fund our needs through 2007, there are no assurances that we will be
      successful in raising sufficient capital.
6
On
      March 30, 2006, we sold $1 million of additional Series B Preferred stock
      to a Series B Preferred shareholder pursuant to provisions of the
      January 2005 Series B 9% Preferred Stock financing agreements. Such
      provisions were exclusive to said shareholder.
On
      June 29, 2006, we borrowed $1,300,000. The loan was repaid in part on
      September 27, 2006 and the balance converted on October 5, 2006 and is
      secured by a lien on our assets.
On
      September 29, 2006 and October 5, 2006, we completed the Series C
      Offering for $8,150,000. Some of the proceeds were used to repay the loan
      borrowed on June 29, 2006. This Series C offering will be enough to supply
      our cash needs through the end of 2007.
Our
      objective of increasing international sales is critical to our business plan
      and
      if we fail to meet this objective, we may not generate revenues in the amounts
      we expect, or in amounts necessary to continue our
      business.
We
      intend
      to attempt to increase international sales of our products. A number of factors
      can slow or prevent international sales, or substantially increase the cost
      of
      international sales, including:
·
regulatory
                requirements and customs
                regulations;
·
cultural
                and political differences;
·
foreign
                exchange rates, currency fluctuations and
                tariffs;
·
dependence
                on and difficulties in managing international distributors or
                representatives;
·
the
                creditworthiness of foreign
                entities;
·
difficulties
                in foreign accounts receivable collection;
                and
·
economic
                conditions and the absence of available funding
                sources.
If
      we are
      unable to increase our revenues from international sales, our operating results
      will be materially harmed.
We
      rely on trade secret laws and agreements with our key employees and other third
      parties to protect our proprietary rights, and we cannot be sure that these
      laws
      or agreements adequately protect our rights.
We
      believe that factors such as the technological and creative skills of our
      personnel, strategic relationships, new product developments, frequent product
      enhancements and name recognition are essential to our success. All our
      management personnel are bound by non-disclosure agreements. If personnel leave
      our employment, in some cases we would be required to protect our intellectual
      property rights pursuant to common law theories which may be less protective
      than provisions of employment, non-competition or non-disclosure
      agreements.
We
      seek
      to protect our proprietary products under trade secret and copyright laws,
      enter
      into license agreements for various materials and methods employed in our
      products, and enter into strategic relationships for distribution of the
      products. These strategies afford only limited protection. We currently have
      no
      or foreign patents, although we have several license agreements for reagents.
      Our Sure Check™ trademark has been registered in the U.S.
7
Despite
      our efforts to protect our proprietary rights, unauthorized parties may attempt
      to copy aspects of our products or to obtain information that we regard as
      proprietary. We may be required to expend substantial resources in asserting
      or
      protecting our intellectual property rights, or in defending suits related
      to
      intellectual property rights. Disputes regarding intellectual property rights
      could substantially delay product development or commercialization activities
      because some of our available funds would be diverted away from our business
      activities. Disputes regarding intellectual property rights might include state,
      federal or foreign court litigation as well as patent interference, patent
      reexamination, patent reissue, or trademark opposition proceedings in the U.S.
      Patent and Trademark Office.
To
      facilitate development and commercialization of a proprietary technology base,
      we may need to obtain additional licenses to patents or other proprietary rights
      from other parties. Obtaining and maintaining these licenses, which may not
      be
      available, may require the payment of up-front fees and royalties. In addition,
      if we are unable to obtain these types of licenses, our product development
      and
      commercialization efforts may be delayed or precluded.
In
      order
      to sell our rapid HIV tests and generate expected revenue from these tests,
      we
      will need to arrange for a license to patents for detection of the HIV-2 virus,
      and we may not be able to do so.
Although
      the current licensor of the peptides used in our HIV tests claims an HIV-2
      patent, other companies have also claimed such patents. Even though HIV-2 is
      a
      type of the HIV virus estimated to represent only a small fraction of the known
      HIV cases worldwide, it is still considered to be an important component in
      the
      testing regimen for HIV in many markets. HIV-2 patents often are found in most
      of the countries of North America and Western Europe, as well as in Japan,
      Korea, South Africa and Australia. Access to a license for one or more HIV-2
      patents may be necessary to sell HIV-2 tests in countries where such patents
      are
      in force, or to manufacture in countries where such patents are in force and
      then sell into non-patent markets. Since HIV-2 patents are in force in the
      U.S.,
      we may be restricted from manufacturing a rapid HIV-2 test in the U.S. and
      selling into other countries, even if there were no HIV-2 patents in those
      other
      countries. The license agreement that we have in effect for the use and sale
      of
      the Adaltis HIV 1 and 2 peptides that are used in our HIV rapid test does not
      necessarily insulate us from claims by other parties that we need to obtain
      a
      license to other HIV-1 and/or HIV-2 patents. Although we have discussed
      additional HIV-2 licenses that would be advantageous for some markets, if we
      are
      unable to complete these discussions successfully our business and operating
      results could be materially harmed.
Our
      continued growth depends on retaining our current key employees and attracting
      additional qualified personnel, and we may not be able to do
      so.
Our
      success will depend to a large extent upon the skills and experience of our
      executive officers, management and sales, marketing, operations and scientific
      staff. Although we have not experienced unusual retention and/or recruitment
      problems to date, we may not be able to attract or retain qualified employees
      in
      the future due to the intense competition for qualified personnel among medical
      products businesses.
If
      we are
      not able to attract and retain the necessary personnel to accomplish our
      business objectives, we may experience constraints that will adversely affect
      our ability to effectively manufacture, sell and market our products, to meet
      the demands of our strategic partners in a timely fashion, or to support
      internal research and development programs. Although we believe we will be
      successful in attracting and retaining qualified personnel, competition for
      experienced scientists and other personnel from numerous companies and academic
      and other research institutions may limit our ability to do so on acceptable
      terms.
We
      have
      entered into employment contracts with our President, Lawrence Siebert, and
      our
      Vice President of Research and Development, Javan Esfandiari. Due to the
      specific knowledge and experience of these executives regarding the industry,
      technology and market, the loss of the services of either one of them would
      likely have a material adverse effect on the Company. The contract with Mr.
      Siebert has a term of two years ending May 2008, and the contract with Mr.
      Esfandiari has a term of three years ending May 2007. We have obtained a
      key man insurance policy for Mr. Esfandiari.
8
We
      believe our success depends on our ability to participate in large government
      programs in the U.S. and worldwide and we may not be able to do
      so.
We
      believe it to be in our best interests to meaningfully participate in the
      Presidential Emergency Plan for Aids Relief Program, UN Global Fund initiatives
      and other programs funded by large donors. We have initiated several strategies
      to participate in these programs. Participation in these programs requires
      alignment with the many other participants in these programs including the
      World
      Health Organization, U.S. Center for Disease Control, U.S. Agency for
      International Development, non-governmental organizations, and HIV service
      organizations. If we are unsuccessful in our efforts to participate in these
      programs, our operating results could be materially harmed.
We
      have a history of incurring net losses and we cannot be certain that we will
      be
      able to achieve profitability.
Since
      the
      inception of Chembio Diagnostic Systems, Inc. in 1985 and through the period
      ended
December 31,
      2005, we have incurred net losses. As of December 31, 2005, we have an
      accumulated deficit of $(18,868,428). We incurred net losses of $(3,252,000)
      and
      $(3,098,891) in 2005 and 2004, respectively.
We
      expect
      to continue to make substantial expenditures for sales and marketing, regulatory
      submissions, product development and other purposes. Our ability to achieve
      profitability in the future will primarily depend on our ability to increase
      sales of our products, reduce production and other costs and successfully
      introduce new products and enhanced versions of our existing products into
      the
      marketplace. If we are unable to increase our revenues at a rate that is
      sufficient to achieve profitability, our operating results would be materially
      harmed.
To
      the extent that we are unable to obtain sufficient product liability insurance
      or that we incur product liability exposure that is not covered by our product
      liability insurance, our operating results could be materially
      harmed.
We
      may be
      held liable if any of our products, or any product which is made with the use
      or
      incorporation of any of the technologies belonging to us, causes injury of
      any
      type or is found otherwise unsuitable during product testing, manufacturing,
      marketing, sale or usage. Although we have obtained product liability insurance,
      this insurance may not fully cover our potential liabilities. In addition,
      as we
      attempt to bring new products to market, we may need to increase our product
      liability coverage which would be a significant additional expense that we
      may
      not be able to afford. If we are unable to obtain sufficient insurance coverage
      at an acceptable cost to protect us, we may be forced to abandon efforts to
      commercialize our products or those of our strategic partners, which would
      reduce our revenues.
Risks
      related to our
Common
      Stock
Our
      Common Stock is classified as penny stock and is extremely illiquid, so
      investors may not be able to sell as much stock as they want at prevailing
      market prices.
Our
Common
      Stock is classified as penny stock. Penny stocks generally are equity securities
      with a price of less than $5.00 and trade on the over-the-counter market. As
      a
      result, an investor may find it more difficult to dispose of or obtain accurate
      quotations as to the price of the Shares being registered in this registration
      statement. In addition, the "penny stock" rules adopted by the Commission under
      the Securities Exchange Act of 1934, as amended (the "Exchange Act"), subject
      the sale of the shares of the Common Stock to regulations that impose sales
      practice requirements on broker-dealers, causing many broker-dealers to not
      trade penny stocks or to only offer the stocks to sophisticated investors that
      meet specified net worth or net income criteria identified by the Commission.
      These regulations contribute to the lack of liquidity of penny stocks.
9
The
      average daily trading volume of our Common Stock on the over-the-counter market
      was less than 33,000 shares per day over the three months ended
      December 31, 2006. If limited trading in our stock continues, it may be
      difficult for investors to sell their shares in the public market at any given
      time at prevailing prices. Since the certificates of designation creating our
      series A and series B preferred stock contain restrictions on our ability
      to declare and pay dividends on our Common Stock, the lack of liquidity of
      our
      Common Stock could negatively impact the rate of return on your
      investment.
Sales
      of a substantial number of shares of our
Common
      Stock into the public market by the selling stockholders may result in
      significant downward pressure on the price of our Common Stock and could affect
      the ability of our stockholders to realize the current trading price of our
      Common Stock.
At
      the
      time of effectiveness of the registration statement, the number of shares of
      our
Common
      Stock eligible to be immediately sold in the market will increase significantly.
      If the selling stockholders sell significant amounts of our stock, our stock
      price could drop. Even a perception by the market that selling stockholders
      will
      sell in large amounts after the registration statement is effective could place
      significant downward pressure on our stock price.
You
      will experience substantial dilution upon the conversion of the shares of
      preferred stock and the exercise of warrants that we issued in three private
      placements and the warrants and options that were assumed in connection with
      the
      merger.
On
May 5,
      2004, we completed three separate private placements in which we issued
      151.57984 shares of our series A preferred stock and warrants to acquire
      9,094,801 shares of our Common Stock at an exercise price of $.90 per share.
      The
      shares of series A preferred stock are convertible into 7,578,985 shares of
      our
      Common Stock. We also issued warrants to purchase 425,000 shares of our Common
      Stock at an exercise price of $0.72 per share and warrants to purchase 510,000
      shares of Common Stock at an exercise price of $1.08 per share to designees
      of
      our placement agents. We also issued warrants pursuant to an employment
      agreement with Mark L. Baum, our former president and former member of our
      board
      of directors, to purchase 425,000 shares and 425,000 shares of our Common Stock,
      respectively, at exercise prices of $0.60 and $0.90 per share, respectively.
      In
      connection with the acquisition of Chembio Diagnostic Systems, Inc., we assumed
      the obligation to issue 690,000 shares of our Common Stock upon the exercise
      of
      warrants, which warrants are exercisable at prices ranging from $0.45 to $4.00
      per share. We also adopted the stock option plan of Chembio Diagnostic Systems
      Inc. and assumed the entire obligation to issue 704,000 common shares upon
      the
      exercise of the options outstanding as of the merger date. On January 28,
      2005, we completed a private placement in which we issued 100 shares of our
      9%
      Series B Convertible Preferred Stock, which we refer to as the "Series B Stock,"
together with warrants to purchase 7,786,960 shares of our Common Stock. For
      each $.61 invested in this private placement, an investor received (a) $.61
      of
      face amount of Series B Stock, which is convertible into one share of our Common
      Stock, and (b) a five-year warrant to acquire .95 of a share of our Common
      Stock. Each full share of the Series B Stock was purchased for $50,000, with
      fractional shares of Series B Stock being purchased by investments of less
      than
      $50,000. In connection with the January 28, 2005 offering, we also issued
      to the placement agent Series B Stock in an aggregate amount equal to 5% of
      the
      amount of cash proceeds from the private placement, together with accompanying
      warrants to purchase our Common Stock. We also issued to the placement agent
      warrants to purchase 737,712 shares of our Common Stock. As of March 31,
      2006, there were 1,529,750 options issued and outstanding under the stock option
      plan and 1,470,250 options available for issuance under the stock option plan.
      As a result, the conversion of the outstanding preferred stock and the exercise
      of the outstanding warrants and options will result in substantial dilution
      to
      the holders of our Common Stock.
On
      March 30, 2006, we issued to an investor 20 shares (face amount $1,000,000)
      of the Company's series B preferred stock with warrants to purchase a total of
      1,557,377 shares of our Common Stock at an exercise price of $0.61 per
      share for a period of five years. We agreed to issue, and the investor agreed
      to
      purchase for $1,000,000, the securities described above pursuant to the terms
      of
      a Securities Purchase Agreement dated January 26, 2005 by and among the
      Company and various purchasers. This transaction represents the second closing
      under the Agreement, and was triggered upon the our achievment, as of
      the fourth fiscal quarter of 2005, certain financial milestones. As compensation
      for services rendered to the Company by Midtown for the second closing, we
      agreed to issued to Midtown two shares (face amount $100,000) of its Series
      B
      Preferred and warrants to purchase a total of 155,738 shares of its Common
      Stock
      at an exercise price of $.061 per share for a period of five years.
10
On
June 29,
      2006, we issued $1,300,000 of secured debentures to four investors. Pursuant
      to
      the terms of these debentures, investors agreed to receive back from the Company
      the full amount of their principal investment, plus interest on the unpaid
      principal sum outstanding at the rate of 0.667% per month. Each investor was
      also granted a warrant to purchase up to 400 shares of Common Stock for each
      $1,000 of such investor's subscription amount, with an exercise price of $0.75
      per share, exercisable for a five year term.
On
      September 29, 2006 and October 5, 2006, we completed a private
      placement for $8,150,000, consisting of 165 shares of 7% series C
      convertible preferred stock, which we refer to as the "Series C Stock," together
      with warrants to purchase 2,578,125 shares of our Common Stock. For each $0.80
      of consideration received, an investor received (a) $0.80 of face amount of
      series C stock, which shall pay cumulative dividends in cash or shares at the
      rate of 7% per annum payable semiannually beginning in the year 2007, and which
      is convertible into one share of the Common Stock, and (b) a five-year warrant
      to acquire shares of our Common Stock, equal to 25% of the investor's
      subscription amount divided by $0.85, with an exercise price of $1.00 share.
      Each full share of the Series C Stock was purchased for $50,000, with fractional
      shares of series C preferred stock being purchased by investments of less than
      $50,000. In connection with this private placement, we employed Midtown Partners
      & Co., LLC to serve as the placement agent with respect to investors
      investing $1,000,000 in this offering. As compensation for services rendered
      to
      the Company, we agreed to (i) pay Midtown a cash fee equal to 5% of the amount
      of cash proceeds we received from the investors Midtown solicited; and (ii)
      issue to Midtown warrants to purchase 62,500 shares of our Common Stock. The
      warrants issued to Midtown are exercisable for a period of five years from
      their
      issuance and have an exercise price of $1.00 per share.
Our
      management and larger stockholders exercise significant control over our Company
      and may approve or take actions that may be adverse to your
      interests.
As
      of
January 31,
      2007, our named executive officers, directors and 5% stockholders beneficially
      owned approximately 25.85% of our voting power. For the foreseeable future,
      to
      the extent that our current stockholders vote similarly, they will be able
      to
      exercise control over many matters requiring approval by the board of directors
      or our stockholders. As a result, they will be able to:
·
control
                the composition of our board of
                directors;
·
control
                our management and policies;
·
determine
                the outcome of significant corporate transactions, including changes
                in
                control that may be beneficial to stockholders;
                and
·
act
                in each of their own interests, which may conflict with, or be different
                from, the interests of each other or the interests of the other
                stockholders.
USE
OF PROCEEDS
We
      will
      not receive any of the proceeds from the sale of the Shares by the Selling
      Stockholders. The Selling Stockholders will pay any underwriting discounts,
      commissions and expenses for brokerage, or any other expenses they incur in
      disposing of the Shares. We will bear all other costs, fees and expenses
      incurred in effecting the registration of the Shares covered by this
      Prospectus.
11
SELL
ING
        STOCKHOLDERS
This
      Prospectus relates to Shares that are being registered for reoffers and resales
      by Selling Stockholders who have acquired (or, in some cases, may acquire)
      Shares pursuant to the 1999 Plan. Non-affiliates holding less than 1,000
      Restricted Shares issued under the 1999 Plan and who are not named below may
      use
      this Prospectus for the offer or sale of those Shares.
Beneficial
      ownership is determined in accordance with the rules of the Commission, is
      based
      upon 11,754,015 shares outstanding as of March 16, 2007, and generally
      includes voting or investment power with respect to securities. Options to
      purchase shares of Common Stock that are currently exercisable or exercisable
      within 60 days of March 16, 2007 are deemed to be outstanding and to be
      beneficially owned by the person holding such options for the purpose of
      computing the percentage ownership of such person but are not treated as
      outstanding for the purpose of computing the percentage ownership of any other
      person. Information regarding the Selling Stockholders, including the number
      of
      Shares offered for sale, will be set forth in a prospectus supplement to the
      extent required. Of the 1,680,750 shares listed below covered by this
      Prospectus, 165,000 shares are restricted shares that have been acquired by
      the
      Selling Stockholders pursuant to the 1999 Plan, and 1,515,750 shares are shares
      to be issued upon exercise of outstanding options issued pursuant to the 1999
      Plan, and are being registered for reoffers and resales by the Selling
      Stockholders named in the table below. The Selling Stockholders may resell
      all,
      a portion, or none of the Shares from time to time. Certain unnamed
      non-affiliates, each of whom may sell up to 1,000 shares of common stock
      issuable upon the exercise of options granted by the 1999 Plan, may use this
      reoffer prospectus for reoffers and resales.
The
      address of each stockholder listed below is care of Chembio Diagnostics, Inc.,
      3661 Horseblock Road, Medford, New York 11763. The following table sets forth
      the name and relationship to the Company of each Selling Stockholder and: (1)
      the number of shares of Common Stock which each Selling Stockholder beneficially
      owned as of March 16, 2007 (which includes options exercisable within 60 days
      of
      March 16, 2007); (2) the number of shares of Common Stock that each Selling
      Stockholder may offer pursuant to this Prospectus (including shares that may
      be
      issued upon exercise of options); and (3) (if one percent or more) the
      percentage of the class to be beneficially owned by such stockholder assuming
      the sale of all shares offered pursuant to this Prospectus.
Selling
                Stockholder
Position
Shares
                Beneficially Owned
Shares
                Covered Under this Prospectus
Percent
                Beneficially Owned After the Resale
Benway,
                Leon H.
Employee
6,500
6,500
-
Brandi,
                Louis V.
Employee
7,500
7,500
-
Bruce,
                Richard A.
VP
125,500
120,000
-
Carus,
                Alan
Director
90,000
102,000
-
Dang,
                Kim T.
Employee
1,000
1,000
-
Drosin,
                Jay A.
Employee
6,000
6,000
-
Dudnanski,
                Cathy J.
Employee
4,000
4,000
-
Eppner,
                Gerald
Ex-Director
75,000
87,000
-
Esfandiari,
                Javan
VP
229,580
232,500
-
Greenwald,
                David A.
Employee
12,500
12,500
-
Greenwald,
                Rena
Employee
12,500
12,500
-
Ippolito,
                Thomas D.
VP
15,000
15,000
-
Johann-Rera,
                Anna M.
Employee
12,500
12,500
-
Kanaujia,
                Ganga
Employee
15,000
15,000
-
Larkin,
                Richard J.
CFO
145,261
137,500
-
Lyashchenko,
                Konstantin
Employee
35,500
30,000
-
Meller,
                Gary
Director
87,000
123,000
-
Osipowich,
                Carol
Employee
7,500
7,500
-
Pelossof,
                Avi
Employee
                (Ex-VP)
650,113
400,000
2.05%
Rivera,
                Wanda
Employee
6,500
6,500
-
Rojas,
                Jennete Z.
Employee
15,500
10,000
-
Siebert,
                Lawrence A.
President
2,141,919
220,000
15.86%
Speer,
                Sandra K.
Employee
95,468
70,000
-
Stutzman,
                Les C.
VP
25,000
35,000
-
Zambrano,
                Maria V.
Employee
1,000
1,000
-
TOTALS
3,823,341
1,674,500
12
PLAN
OF DISTRIBUTION
The
      Shares covered by this Prospectus are being registered by us for the account
      of
      the Selling Stockholders.
The
      Shares offered by this Prospectus may be sold from time to time directly by
      or
      on behalf of the Selling Stockholders in one or more transactions on the OTC
      Bulletin Board or on any stock exchange on which the Common Stock may be listed
      at the time of sale, in privately negotiated transactions, or through a
      combination of these methods. The Selling Stockholders may sell Shares through
      one or more agents, brokers or dealers or directly to purchasers. These brokers
      or dealers may receive compensation in the form of commissions, discounts or
      concessions from the Selling Stockholders and/or purchasers of the Shares,
      or
      both. Compensation as to a particular broker or dealer may be in excess of
      customary commissions. The Selling Stockholders will act independently of us
      in
      making decisions with respect to the timing, manner and size of each sale or
      non-sale related transfer. If a Selling Stockholder is an employee, officer
      or
      director of the Company, he or she will be subject to our policies concerning
      trading and other transactions in the Company's securities.
Each
      Selling Stockholder of the Shares and any of their pledgees, assignees and
      successors-in-interest may, from time to time, sell any or all of their Shares
      on any stock exchange, market or trading facility on which the shares are traded
      or in private transactions. These sales may be at fixed or negotiated prices.
      A
      Selling Stockholder may use any one or more of the following methods when
      selling the Shares:
·
ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;
·
block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;
·
purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;
·
an
                exchange distribution in accordance with the rules of the applicable
                exchange;
·
privately
                negotiated transactions;
·
settlement
                of short sales entered into after the date of this
                Prospectus;
·
broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;
·
a
                combination of any such methods of
                sale;
·
through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or otherwise;
                or
·
any
                other method permitted pursuant to applicable
                law.
The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this Prospectus. There is no assurance
      that
      the Selling Stockholders will sell all or a portion of the stock being offered
      hereby.
13
In
      connection with the sale of Shares, the Selling Stockholders may enter into
      hedging transactions with broker-dealers or other financial institutions, which
      may in turn engage in short sales of the Shares in the course of hedging the
      positions they assume. The Selling Stockholders may also sell the Shares short
      and deliver these Shares to close out short positions, or loan or pledge the
      Shares to broker-dealers or other financial institutions that in turn may sell
      these Shares. The Selling Stockholders may also enter into option or other
      transactions with broker-dealers or other financial institutions that require
      the delivery to the broker-dealer or other financial institution of the Shares,
      which the broker-dealer or other financial institution may resell pursuant
      to
      this Prospectus, or enter into transactions in which a broker-dealer makes
      purchases as a principal for resale for its own account or through other types
      of transactions.
In
      connection with the sales, a Selling Stockholder and any participating broker
      or
      dealer may be deemed to be "underwriters" within the meaning of the Securities
      Act, and any commissions they receive and the proceeds of any sale of Shares
      may
      be deemed to be underwriting discounts or commissions under the Securities
      Act.
      A Selling Stockholder who is deemed to be an "underwriter" within the meaning of
      Section 2(11) of the Securities Act will be subject to the prospectus
      delivery requirements of the Securities Act. The Selling Stockholders and any
      other person participating in such distribution will be subject to applicable
      provisions of the Exchange Act and the rules and regulations thereunder,
      including, without limitation, Regulation M. Regulation M may limit the timing
      of purchases and sales of shares of our Common Stock by the Selling Stockholders
      and any other person. Furthermore, Regulation M may restrict, for a period
      of up
      to five business days prior to the commencement of the distribution, the ability
      of any person engaged in a distribution of shares of our Common Stock to engage
      in market-making activities with respect to these shares. All of the foregoing
      may affect the marketability of shares of our Common Stock and the ability
      of
      any person or entity to engage in market-making activities with respect to
      shares of our Common Stock.
To
      the
      extent required, the Shares to be sold, the names of the persons selling the
      Shares, the respective purchase prices and public offering prices, the names
      of
      any agent, dealer or underwriter and any applicable commissions or discounts
      with respect to a particular offer will be set forth in an accompanying
      prospectus supplement or, if appropriate, a post-effective amendment to the
      registration statement of which this Prospectus is a part.
We
      are
      bearing all of the fees and expenses relating to the registration of the Shares.
      Any underwriting discounts, commissions or other fees payable to broker-dealers
      or agents in connection with any sale of the Shares will be borne by the Selling
      Stockholders. In order to comply with certain states' securities laws, if
      applicable, the Shares may be sold in such jurisdictions only through registered
      or licensed brokers or dealers. In certain states, the Shares may not be sold
      unless the Shares have been registered or qualified for sale in such state,
      or
      unless an exemption from registration or qualification is available and is
      obtained and complied with. Sales of the Shares must also be made by the Selling
      Stockholders in compliance with all other applicable state securities laws
      and
      regulations.
The
      Selling Stockholders may agree to indemnify any broker-dealer or agent that
      participates in transactions involving sales of the Shares against certain
      liabilities in connection with the offering of the Shares arising under the
      Securities Act.
We
      have
      notified the Selling Stockholders of the need to deliver a copy of this
      Prospectus in connection with any sale of the Shares.
14
EXPERTS
Our
      consolidated financial statements as of December 31, 2005 and
      December 31, 2004 and for the years ended December 31, 2005,
      December 31, 2004 and December 31, 2003, incorporated by reference in
      this Prospectus and the related financial statement schedule incorporated by
      reference in this Prospectus have been audited by Lazar, Levine & Felix LLP,
      a registered independent public accounting firm, as stated in its reports
      incorporated by reference herein, and are included in reliance upon the reports
      of such firm given upon its authority as an expert in accounting and auditing.
      The foregoing financial statements have been incorporated by reference herein
      in
      reliance upon such reports given on the authority of such firm as experts in
      accounting and auditing.
LEGAL
MATTERS
The
      validity of the Shares being offered hereby has been passed upon for the Company
      by Patton Boggs LLP. A partner of Patton Boggs LLP owns 82,101 shares of Common
      Stock, 1.44731 shares of series A preferred stock (which are convertible into
      72,365 shares of Common Stock) and a warrant to purchase 94,930 shares of our
      Common Stock.
INCORPO
RATION
      OF CERTAIN DOCUMENTS BY
      REFERENCE
We
      disclose important information to you by referring you to documents that we
      have
      previously filed with the Commission or documents we will file with the
      Commission in the future. We hereby incorporate by reference the following
      documents into this Prospectus:
·
our
                Annual Report on Form 10-KSB for the fiscal year ended December 31,
                2005, filed with the Commission on March 30, 2006;
·
our
                Quarterly Reports on Form 10-QSB for the quarters ended March 31,
                2006 (filed May 12, 2006) and June 30, 2006 (filed
                August 11, 2006);
·
our
                Current Reports on Form 8-K filed February 13, 2007, January 30,
                2007, December 6, 2006 (except for Item 7.01 and Exhibit 99.1
                contained therein); November 15, 2006 (except for Items 2.02 and 7.01
                and Exhibits 99.1 and 99.2 contained therein); October 5, 2006
                (except for Item 7.01 and Exhibits 99.1 and 99.2 contained therein),
                October 5, 2006 (except for Item 7.01 and Exhibit 99.1),
                August 9, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), July 3, 2006 (except for Item 7.01 and Exhibits 99.1, 99.2,
                99.3 and 99.4), June 21, 2006, June 14, 2006, April 24,
                2006, April 21, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), April 6, 2006 and April 4, 2006 (except for Item 7.01
                and Exhibits 99.1 and 99.2) pursuant to Section 13 of the Securities
                Exchange Act of 1934, as amended; and
·
the
                description of our Common Stock set forth in our prospectus filed
                pursuant
                to Rule 424(b) of the Securities Act of 1933 (as amended), filed
                with the
                Commission February 6, 2007, and all amendments and reports filed by
                us to update that description.
Additionally,
      all documents filed by us with the SEC under Sections 13(a), 13(c), 14 or 15(d)
      of the Securities Exchange Act of 1934, as amended, after the date of this
      Prospectus and before the termination or completion of this offering shall
      be
      deemed to be incorporated by reference into this Prospectus from the respective
      dates of filing of such documents. Any information that we subsequently file
      with the Commission that is incorporated by reference as described above will
      automatically update and supersede any previous information that is part of
      this
      Prospectus.
Upon
      written or oral request, we will provide you without charge, a copy of any
      or
      all of the documents incorporated by reference, other than exhibits to those
      documents unless the exhibits are specifically incorporated by reference in
      the
      documents. Please send requests to Chembio Diagnostics, Inc., 3661 Horseblock
      Road, Medford, New York 11763, or call (631) 924-1135.
15
DISC
LOSURE
      OF COMMISSION POSITION OF
      INDEMNIFICATION
FOR
      SECURITIES ACT LIABILITIES
Our
      directors and officers are indemnified by our bylaws against amounts actually
      and necessarily incurred by them in connection with the defense of any action,
      suit or proceeding in which they are a party by reason of being or having been
      directors or officers of Chembio Diagnostics, Inc. or of our subsidiary. Our
      articles of incorporation provide that none of our directors or officers shall
      be personally liable for damages for breach of any fiduciary duty as a director
      or officer involving any act or omission of any such director or officer.
      Insofar as indemnification for liabilities arising under the Securities Act
      of
      1933, as amended, may be permitted to such directors, officers and controlling
      persons pursuant to the foregoing provisions, or otherwise, we have been advised
      that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Securities Act
      and
      is, therefore, unenforceable.
In
      the
      event that a claim for indemnification against such liabilities, other than
      the
      payment by Chembio Diagnostics, Inc. of expenses incurred or paid by such
      director, officer or controlling person in the successful defense of any action,
      suit or proceeding, is asserted by such director, officer or controlling person
      in connection with the securities being registered, we will, unless in the
      opinion of counsel the matter has been settled by controlling precedent, submit
      to a court of appropriate jurisdiction the question whether such indemnification
      by it is against public policy as expressed in the Securities Act and will
      be
      governed by the final adjudication.
16
NO
      DEALER, SALESMAN OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION
      OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS,
      AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED
      UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY SELLING STOCKHOLDER.
      NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL,
      UNDER
      ANY CIRCUMSTANCES, IMPLY THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE
      COMPANY OR THAT THE INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT
      TO
      THE DATE AS OF WHICH SUCH INFORMATION IS GIVEN. THIS PROSPECTUS DOES NOT
      CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY ANY OF
      THE
      SECURITIES OFFERED HEREBY TO ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER
      OR
      SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
      SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANYONE TO WHOM IT IS UNLAWFUL
      TO
      MAKE SUCH OFFER OR SOLICITATION.
TABLE
                    OF CONTENTS
Page
WHERE
                    YOU CAN FIND ADDITIONAL
                    INFORMATION
1
SPECIAL
                    NOTE REGARDING FORWARD-LOOKING
                    STATEMENTS
1
SUMMARY
2
RISK
                    FACTORS
3
USE
                    OF PROCEEDS
11
SELLING
                    STOCKHOLDERS
12
PLAN
                    OF DISTRIBUTION
13
EXPERTS
15
LEGAL
                    MATTERS
15
INCORPORATION
                    OF CERTAIN DOCUMENTS BY
                    REFERENCE
15
Disclosure
                    of Commission Position of Indemnification
                    for Securities Act Liabilities
16
CHEMBIO
      DIAGNOSTICS, INC. HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
      WASHINGTON, D.C., A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WITH RESPECT
      TO THE SHARES OFFERED HEREBY. THIS PROSPECTUS OMITS CERTAIN INFORMATION
      CONTAINED IN THE REGISTRATION STATEMENT. THE INFORMATION OMITTED MAY BE OBTAINED
      FROM THE SECURITIES AND EXCHANGE COMMISSION UPON PAYMENT OF THE REGULAR CHARGE
      THEREFORE.
1,680,750
      SHARES
CHEMBIO
      DIAGNOSTICS, INC.
COMMON
      STOCK
REOFFER
      PROSPECTUS
March 23,
      2007
17
PART
      II
INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT
ITEM
      3. INCORPORATION OF DOCUMENTS BY REFERENCE
We
      hereby
      incorporate by reference the following documents into this Registration
      Statement:
·
our
                Annual Report on Form 10-KSB for the fiscal year ended December 31,
                2005, filed with the Commission on March 30, 2006;
·
our
                Quarterly Reports on Form 10-QSB for the quarters ended March 31,
                2006 (filed May 12, 2006) and June 30, 2006 (filed
                August 11, 2006);
·
our
                Current Reports on Form 8-K filed February 13, 2007, January 30,
                2007, December 6, 2006 (except for Item 7.01 and Exhibit 99.1
                contained therein); November 15, 2006 (except for Items 2.02 and 7.01
                and Exhibits 99.1 and 99.2 contained therein); October 5, 2006
                (except for Item 7.01 and Exhibits 99.1 and 99.2 contained therein),
                October 5, 2006 (except for Item 7.01 and Exhibit 99.1),
                August 9, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), July 3, 2006 (except for Item 7.01 and Exhibits 99.1, 99.2,
                99.3 and 99.4), June 21, 2006, June 14, 2006, April 24,
                2006, April 21, 2006 (except for Item 7.01 and Exhibit 99.1 contained
                therein), April 6, 2006 and April 4, 2006 (except for Item 7.01
                and Exhibits 99.1 and 99.2) pursuant to Section 13 of the Securities
                Exchange Act of 1934, as amended; and
·
the
                description of our Common Stock set forth in our prospectus filed
                pursuant
                to Rule 424(b) of the Securities Act of 1933 (as amended), filed
                with the
                Commission February 6, 2007, and all amendments and reports filed by
                us to update that description.
All
      documents we file pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
      Exchange Act subsequent to the date hereof and prior to the filing of a
      post-effective amendment that indicates that all securities offered have been
      sold or that deregisters all securities then remaining unsold shall be deemed
      to
      be incorporated by reference into this Registration Statement and to be part
      hereof from the date of filing of such documents. Any statement contained in
      a
      document incorporated or deemed to be incorporated by reference herein shall
      be
      deemed to be modified or superseded for purposes of this
Registration
      Statement to the extent that a statement contained herein or in any other
      subsequently filed document which also is or is deemed to be incorporated by
      reference herein modifies or supersedes such statement. Any such statement
      so
      modified or superseded shall not be deemed, except as so modified or superseded,
      to constitute a part hereof.
ITEM
      4. DESCRIPTION OF SECURITIES
We
      incorporate by reference herein the description of our securities set forth
      in
      our prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933
      (as amended), filed on February 6, 2007, File
      No. 333-138266.
ITEM
      5. INTEREST OF NAMED EXPERTS AND COUNSEL
The
      validity of the common stock covered by this Registration Statement has been
      passed upon for the Company by Patton Boggs LLP. A partner of Patton Boggs
      LLP
      owns 82,101 shares of common stock, 1.44731 shares of series A preferred stock
      (which are convertible into 72,365 shares of common stock) and a warrant to
      purchase 94,930 shares of our common stock.
18
ITEM
      6. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Our
      articles of incorporation provide for the indemnification of the directors,
      officers, employees and agents of the Company to the fullest extent permitted
      by
      the laws of the State of Nevada. Section 78.7502 of the Nevada General
      Corporation Law permits a corporation to indemnify any of its directors,
      officers, employees or agents against expenses actually and reasonably incurred
      by such person in connection with any threatened, pending or completed action,
      suit or proceeding, whether civil, criminal, administrative or investigative
      (except for an action by or in right of the corporation) by reason of the fact
      that such person is or was a director, officer, employee or agent of the
      corporation, provided that it is determined that such person acted in good
      faith
      and in a manner which he reasonably believed to be in, or not opposed to, the
      best interests of the corporation and, with respect to any criminal action
      or
      proceeding, had no reasonable cause to believe his conduct was unlawful.
Section
      78.751 of the Nevada General Corporation Law requires that the determination
      that indemnification is proper in a specific case must be made by (a) the
      stockholders, (b) the board of directors by majority vote of a quorum consisting
      of directors who were not parties to the action, suit or proceeding or (c)
      independent legal counsel in a written opinion (i) if a majority vote of a
      quorum consisting of disinterested directors is not possible or (ii) if such
      an
      opinion is requested by a quorum consisting of disinterested directors.
Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      (the
"Securities Act") may be permitted to directors, officers and controlling
      persons of the registrant pursuant to the foregoing provisions, or otherwise,
      the registrant has been advised that in the opinion of the Securities and
      Exchange Commission such indemnification is against public policy as expressed
      in the Securities Act and is, therefore, unenforceable.
ITEM
      7. EXEMPTION FROM REGISRTATION CLAIMED
Not
      applicable.
ITEM
      8. EXHIBITS
The
      following documents are filed as exhibits to this Registration
      Statement:
Exhibit
Number
Exhibit
4.1
1999
      Equity Incentive Plan (
Incorporated
      by reference to the
Registrant's
      Proxy Statement filed with the Commission on May 11,
      2005
.)
5.1
Opinion
      and Consent of Patton Boggs LLP
23.1
Consent
      of Lazar Levine and Felix LLP
23.2
Consent
      of Patton Boggs LLP (
included in Exhibit
      5.1
)
24.1
Power
      of
      Attorney (included on signature page hereto)
19
ITEM
      9. UNDERTAKINGS
The
      registrant hereby undertakes:
(a)(1)
To
      file,
      during any period in which offers or sales are being made, a post-effective
      amendment to this Registration Statement to:
(i)
Include
                any prospectus required by Section 10(a)(3) of the Securities
                Act;
(ii)
Reflect
                in the prospectus any facts or events arising after the effective
                date of
                the Registration Statement (or the most recent post-effective amendment
                thereof) which, individually or in the aggregate, represent a fundamental
                change in the information in the Registration Statement. Notwithstanding
                the foregoing, any increase or decrease in volume of securities offered
                (if the total dollar value of securities offered would not exceed
                that
                which was registered) and any deviation from the low or high end
                of the
                estimated maximum offering range may be reflected in the form of
                prospectus filed with the Commission pursuant to Rule 424(b) if,
                in the
                aggregate, the changes in volume and price represent no more than
                a 20%
                change in the maximum aggregate offering price set forth in the
                "Calculation of Registration Fee" table in the effective registration
                statement.
(iii)
Include
                any material information with respect to the plan of distribution
                not
                previously disclosed in the Registration Statement or any material
                change
                to such information in the Registration
                Statement;
provided,
      however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the
      Registration Statement is on Form S-8 and the information required to be
      included in a post-effective amendment by those paragraphs is contained in
      periodic reports filed with or furnished to the Commission by the registrant
      pursuant to Section 13 or 15(d) of the Exchange Act that are incorporated by
      reference to the Registration Statement.
(2)
That,
      for
      the purpose of determining any liability under the Securities Act, each such
      post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering
      thereof.
(3)
To
      remove
      from registration by means of a post-effective amendment any of the securities
      being registered which remain unsold at the termination of the
      offering.
(b)
The
      undersigned registrant hereby undertakes that, for purposes of determining
      any
      liability under the Securities Act, each filing of the registrant's annual
      report pursuant to Section 13(a) or 15(d) of the Exchange Act that is
      incorporated by reference in the Registration Statement shall be
deemed
      to
      be a new registration statement relating to the securities offered therein,
      and
      the offering of such securities at that time shall be deemed to be the initial
      bona fide offering thereof.
(c)
Insofar
      as indemnification for liabilities arising under the Securities Act may be
      permitted to the directors, officers and controlling persons of the registrant
      pursuant to the foregoing provision, or otherwise, the registrant has been
      advised that in the opinion of the Commission such indemnification is against
      public policy as expressed in the Securities Act and is, therefore,
      unenforceable. In the event that a claim for indemnification against such
      liabilities (other than the payment by the registrant of expenses incurred
      or
      paid by a director, officer or controlling person of the registrant in the
      successful defense of any action, suit, or proceeding) is asserted by such
      director, officer or controlling person in connection with the securities being
      registered, the registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act and will be governed by final
      adjudication of such issue.
20
SIGNATURES
Pursuant
      to the requirements of the Securities Act, the registrant certifies that it
      has
      reasonable grounds to believe that its meets all of the requirements for filing
      on Form S-8 and has duly caused this Registration Statement to be signed on
      its
      behalf by the undersigned, thereunto duly authorized, in the city of Medford,
      State of New York, on this 23rd day of March 2007.
CHEMBIO
      DIAGNOSTICS, INC.
By:
/s/
      Lawrence A. Siebert
Lawrence
      A. Siebert
President,
      Chief Executive Officer and Chairman of the Board
Each
      person whose signature appears below appoints Lawrence A. Siebert, individually,
      as true and lawful attorneys-in-fact and agents, with full power of substitution
      to sign any amendments (including post-effective amendments) to this
      Registration Statement and to each registration statement amended hereby, and
      to
      file the same, with all exhibits and other related documents, with the
      Commission, with full power and authority to perform any necessary or
      appropriate act in connection with the amendment(s).
Pursuant
      to the requirements of the Securities Act, this Registration Statement has
      been
      signed below by the following persons in the capacities and on the dates
      indicated.
By:
/s/
                Lawrence A. Siebert
March 23,
                2007
Lawrence
                A. Siebert
President,
                Chief Executive Officer and Chairman of the Board
(Principal
                Executive Officer)
By:
/s/
                Richard J. Larkin
March 23,
                2007
Richard
                J. Larkin
Chief
                Financial Officer
(Principal
                Financial and Accounting Officer)
By:
/s/
                Alan Carus
March 23,
                2007
Alan
                Carus
Director
By:
/s/ Dr. Gary Meller
March 23,
                2007
Dr. Gary Meller
Director
21
EXHIBIT
      INDEX
Exhibit
Number
Exhibit
4.1
1999
      Equity Incentive Plan (Incorporated by reference to the Company's annual report
      on Form 10-KSB filed with the Commission on March 31, 2005.)
5.1
Opinion
      and Consent of Patton Boggs LLP
23.1
Consent
      of Lazar Levine and Felix LLP
23.2
Consent
      of Patton Boggs LLP (included in Exhibit 5.1)
24.1
Power
      of
      Attorney (included on signature page hereto)
22