Bio-Reference Again Posts Record Profits On Record Revenues in Third Quarter; Company records second consecutive record profits in tenth quarter of record revenues.

Business Editors & Health/Medical Writers

BIOWIRE2K

ELMWOOD PARK, N.J.--(BW HealthWire)

Sept. 11, 2001 -Bio-Reference Laboratories, Inc. (NADSAQ: BRLI) reported record income for the second consecutive quarter on income of $619,835, or $0.06 per share, in its tenth consecutive quarter of record revenues, $21,168,044, in the fiscal third quarter ended July 31, 2001.

Revenues increased 23% over the third quarter FY2000 revenues of $17,171,598; net income increased substantially over the net income of $44,929, or $0.01 per share, recorded in the third quarter FY2000. Patient count also increased to 456,362 in the quarter, up from 360,285 in the same quarter a year ago, an increase of 27%. Third quarter revenues increased 7% over the $19,831,231 and net income increased 23% over the $502,501 recorded respectively in the second quarter FY2001 when the Company set its previous records in those categories.

Gross profit rose to $9,541,722 for the third quarter FY2001, up from $7,727,504 in the same quarter FY2000, an increase of 23%, and operating income increased 124% to $1,053,618 from $469,762 over the same periods.

For the nine month period ending July 31, 2001, the Company recorded profits of $1,244,365 on revenues of $59,386,447 versus a net loss of ($172,920) on revenues of $48,487,299 in the same nine month period ending July 31, 2000. Gross profit for the same nine month periods rose respectively to $26,596,511 from $21,413,609 and operating income rose to $2,562,272 from $953,380. Patient counts grew in line with revenues, increasing 24% to 1,253,445 over the nine month period ending July 31, 2001, from 1,012,784 in the same period ending July 31, 2000. Income per share for the nine month period ended July 31, 2001 were $0.13 compared to a loss of $0.02 for the nine period ended July 31, 2000.

Growth over the past year has been fueled through internal growth as the Company continues to expand primarily through the efforts of an extremely effective direct marketing sales force. Genomics testing and oncology testing have continued to increase substantially as the prison healthcare and GenPath oncology programs have steadily gained market share.

Marc Grodman, MD, President, CEO and Chairman of the Board, noted, "The strong performance of the Company during the third quarter continues to validate the Bio-Reference business strategy which has resulted in a steady run-up in revenues. The continuing improvements in our net margins are the result of an ongoing overhaul of internal operations and efficiencies. The combination of these two major corporate efforts has resulted in the dramatic turnaround we have made over the past year. Our core laboratory operations have focused on servicing customers within our region, continuing the expansion of our oncology and esoteric testing services and capitalizing on our strong presence in the prison healthcare markets. In addition, we continue to augment our traditional marketing efforts through the implementation of our vertical market strategy that utilizes the inherent connectivity of the laboratory and the underlying value of the laboratory data that we provide to extend and protect our market share. Our recent growth over the past year has not been based on price increases, but has been based on expansion of our testing services and growth in patient count."

Dr. Grodman continued, "Our sustained growth over the past several years has justified our revised business model. Our focus on esoteric testing and genomics has enabled our accelerated growth in both the oncology market and the prison healthcare market. We intend to continue moving towards a leadership role in these areas. Our attention to service and support has been the cornerstone of all of our growth and development. Our ability to introduce connectivity and informatics has enhanced our ability to attract and retain a broader range of institutional customers. Over the next year, we expect that these strengths will continue to fuel continued growth and improved profitability."

Web cast

Interested shareholders and investors are invited to listen to Bio-Reference's Third Quarter conference call live over the Internet on Tuesday, September 11, 2001 at 10:30 a.m. Eastern Time. The live Web cast is provided by KCSA at http://www.kcsa.com. To listen live, please go to www.kcsa.com approximately twenty minutes before the conference call is scheduled to begin. You will need to register as well as download and install any necessary audio software. The Web cast will be available for 30 days following the call.

About Bio-Reference Laboratories, Inc.

The Company is the largest independent regional clinical laboratory in the Northeast and has major market positions in physician offices, nursing homes and correctional institutions. The Company's wholly owned subsidiary, CareEvolve, is a physician-centric connectivity solution that seeks to enhance physician-patient and physician-payer electronic communications on a secure basis, including communicating laboratory results, e-mail, prescriptions, payer verification and eligibility, as well as offering many other value-added Internet based services to its physician members. PSIMedica, a business unit of the Company, is a clinical knowledge management (CKM) organization offering an array of information solutions for improving healthcare cost and quality performance.

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors are detailed from time to time in the Company's filings with the regulatory authorities having jurisdiction.

You may register to receive Bio-Reference Laboratories' future press releases or to download a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at www.kcsa.com.

                   BIO-REFERENCE LABORATORIES, INC.
                       STATEMENTS OF OPERATIONS
                              (Unaudited)

                       Three months ended       Nine months ended
                            July 31                  July 31,
                       2001          2000       2001         2000

Net Revenues      $21,168,044    $17,171,598 $59,386,447  $48,487,299

Cost of Sales      11,626,322      9,444,094  32,789,935   27,073,690

Gross Profit on
    Revenues      $ 9,541,722    $ 7,727,504 $26,596,512  $21,413,609

General and
    Administrative  8,488,104      7,257,742  24,034,239   20,460,229

Operating Income  $ 1,053,618    $   469,762 $ 2,562,273      953,380

Other Expense, net    433,783        424,833   1,317,907    1,126,300

Income (Loss)     $   619,835    $    44,929 $ 1,244,365  $  (172,920)

Income (Loss) Per
    Share         $      0.06    $      0.01 $      0.13  $     (0.02)

Number of Shares   10,737,772      8,140,449   9,541,002    8,073,968

Income (Loss) Per Share:
  Assuming
    Dilution      $      0.05    $      0.01 $      0.11  $     (0.02)

Number of Shares:
  Assuming
    Dilution       12,595,294      9,494,673  11,398,524    9,428,192