Bio-Reference Laboratories, Inc. Announces PSIMedica Contract.

Business Editors

ELMWOOD PARK, N.J.--(BUSINESS WIRE)--Nov. 20, 2002

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) announced today a strategic alliance with ML Holdings of Toledo, Ohio, an established regional provider of ancillary healthcare services in the northwest Ohio, southeast Michigan area.

The strategic alliance agreement has resulted in a three year contract for ML Holdings to provide Clinical Knowledge Management analytical services to a major northwest Ohio payor. The agreement, valued at approximately $2 million over the next three years for PSIMedica, will enable ML Holdings to provide highly sophisticated and complex analysis to the payor based on enrollment data, claims data, pharmaceutical data and laboratory results data. Under the terms of the strategic alliance reseller's agreement, ML Holdings will further be able to provide this solution to other bulk users of laboratory data or other key data elements as well.

Pursuant to the terms of the strategic partner Agreement, PSIMedica will continue to support its product by providing development, implementation and ongoing maintenance expertise. ML Holding's sales will initially focus on bringing the PSIMedica business solution to the payor organizations and corporations with whom ML Holdings has developed strong and long-standing relationships.

PSIMedica has been designed to provide analytical insight and increased accuracy to the evaluation of the quality and cost of healthcare services. PSIMedica has recently completed its latest version of software that enables laboratory results data to be used in analytical solutions. The system has been designed to integrate medical claims, pharmacy data and laboratory results. The analytical business intelligence gained from the data integration is vital to the management of healthcare services and programs. A proprietary healthcare data warehouse drives the analytical engine. The PSIMedica analytical software strengthens an organization's "in house" capacity for management intervention in administrative management and clinical oversight areas while enabling the organization to balance the quality and cost of healthcare services using comprehensive information.

F. Michael Walsh, MD, CEO of ML Holdings, stated "We have been providing healthcare solutions to our customers for many years and we believe that PSIMedica will elevate the level of our solutions substantially going forward. Our customers need information; more importantly, they need information that is organized in a useful, friendly manner so they can use that information to provide quality and efficient solutions. We intend to use the PSIMedica analytical engine as the foundation tool for providing information solutions. We have been working with Bio-Reference for some time now and we fully support the Bio-Reference robust, comprehensive approach to healthcare. By providing comprehensive information and services to healthcare providers, we can enable those providers to achieve quality and efficient healthcare solutions."

Marc Grodman, MD, President, CEO of Bio-Reference Laboratories, stated: "PSIMedica is a differentiator in the marketplace for clinical laboratories. We started our quest to develop this capability several years ago and we believe that it will enable us to secure business that would otherwise be unavailable to us. We have built our business model on the concept that a laboratory must be more than a laboratory and we have enunciated that intention for quite a while now. Dr. Walsh and ML Holdings subscribe to the same concept. We are excited about the opportunity to work with ML Holdings to help demonstrate the value and validity of this strategy. It is essential that healthcare providers utilize information that may enhance service and therefore provide a greater quality of healthcare. We are thrilled that ML Holdings believes in the importance connectivity and informatics must play in healthcare today and has chosen to partner with PSIMedica to successfully implement that strategy. The scope of their reach in northwest Ohio is considerable. We are certain that their clients will be overwhelmingly receptive to the idea of improved output and pleased with the unquestionable results they will get."

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 software analytical engine that utilizes all available source information, including eligibility data, medical claims data, prescription data and laboratory result data. The Company also provides a comprehensive connectivity solution called CareEvolve. CareEvolve, BRLI's web-based healthcare portal, provides and/or supports disease management, laboratory reporting and ordering, as well as claims eligibility and processing to physicians.

About ML Holdings

The Company is a management and investment firm focusing on the development of businesses dedicated to providing comprehensive value added services in the fields of laboratory medicine and pathology. It presently has controlling investments in eight (8) corporations in the fields of integrative technology, intellectual property, diagnostic medicine, medical marketing, financial services and logistics.

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.

www.bioreference.com