Bio-Reference Laboratories, Inc. Announces Contract with Correctional Medical Services.

ELMWOOD PARK, N.J. -- Revenues Anticipated to Exceed $4MM Annually with National Correctional Healthcare Company

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) announced today that it has entered into a Contract with Correctional Medical Services, Inc., of St. Louis, MO (CMS) to provide clinical laboratory services to correctional centers served by CMS in various areas throughout the country. CMS is a privately-owned corporation and a leading provider of correctional healthcare services to state prisons and local and county jail systems around the country. Bio-Reference has been providing clinical laboratory services for CMS in the State of Maine for nearly two years and began providing laboratory services to the State of New Jersey Department of Corrections for the New Jersey prison system on June 1, 2005. The parties have scheduled Bio-Reference to begin providing clinical laboratory services to a number of other state and local systems over the next several months.

This Contract is based on fee for service payments and it is difficult to ascertain the exact value of the new contract, but the Bio-Reference estimates that the revenues from the anticipated correctional healthcare accounts should provide in excess of $4MM in total annual revenue to the Company.

Marc D. Grodman M.D., President noted, "We believe that correctional healthcare is good laboratory business. It is an under-appreciated market, national in scope and a solid contributor to our overall business model. Correctional Medical Systems, Inc, is one of the largest correctional healthcare companies in the country; it has signaled its recognition of our outstanding correctional healthcare team by agreeing to enter into a contract with us to allow Bio-Reference to be a major provider of laboratory services at many of the facilities that they service. We believe that our centralized correctional healthcare model which emphasizes superior service and support and provides valuable informatics solutions has enabled us to become the recognized leader in this valuable market. We welcome CMS into our growing customer family and look forward to working with them throughout the country."

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 is a full service clinical laboratory with specialty capability, especially in the areas of genomics, oncology, correctional health, and complimentary medicine. PSIMedica, a business unit of the Company, is a clinical knowledge management (CKM) organization offering an array of information solutions for reducing healthcare costs and improving quality performance that are based on a flexible, scalable software analytical engine that utilizes all available source information, including claims data, enrollment data, prescription data and laboratory data. The Company provides a comprehensive connectivity solution to physicians, which includes disease management, laboratory reporting and ordering, as well as claims and eligibility processing through CareEvolve, its web-based healthcare portal.

Statements included in this release that are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements". Statements looking forward in time are included in this release pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from any future performance suggested herein.

www.bioreference.com