Bio-Reference Laboratories, Inc. Announces Record Results Across the Board for Q4 and All of FY2004.

ELMWOOD PARK, N.J. -- BRLI Reports Nearly 25% Increase In Net Revenues and 42% Increase in Pre-Tax Income For FY2004

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) (Numbers in Thousands Except Per Share Data or where otherwise noted) released its FY2004 and fourth quarter, FY2004 earnings today. For FY2004, pre-tax income rose to $12,186 on net revenues of $136,184 compared to the prior fiscal year when the Company posted pre-tax income of $8,604 on net revenues of $109,034, representing year over year growth of 42% on pre-tax income and 25% on net revenues. Net Income after taxes for the current fiscal year was $8,516, an increase of 30% over the prior fiscal year net income after taxes of $6,540. Gross Profit on Revenues for the current fiscal year was $67,983 resulting in a margin of 50% for the year compared to $52,818 and 48% in the prior fiscal year. Earnings per Share (EPS) for the current fiscal year were $.67 per share on a fully taxed basis and $.96 per share on a pre-tax basis, compared to $.51 per share fully taxed and $.67 per share on a pre-tax basis in the prior fiscal year. The effective tax rate for the year was 30%, lower than anticipated but increased from the tax rate of 24% for Fiscal Year 2003. Patient count for the current fiscal year was 2,522, an increase of more than 19% over the prior fiscal year count of 2,115. Revenue per patient for the current fiscal year rose more than 4% to $53.71 over the prior fiscal year average of $51.41.

For the current fiscal Quarter, the Company posted record pre-tax net income of $3,648 on record net revenues for the quarter of $37,744, compared to pre-tax income of $3,365 on revenues of $30,404 recorded in the fourth quarter of fiscal year 2003, increases of more than 8% and 24% respectively. On a fully diluted basis, EPS on a pre-tax basis increased to $.28 per share as compared to the prior year pre-tax EPS of $.26 per share. Gross Profit on Revenues increased to $19,259 and represented a margin for gross profit on revenues of just over 51% compared to the prior year's $15,427 and just under 51%. Net income after taxes for the current quarter was $3,313 or $.25 EPS compared to the prior year net income after taxes of $2,247 or $.17 EPS. This fully taxed fourth quarter calculation reflected the change in the annual tax rate mentioned above. Patient count for the current quarter was 665 compared to the prior year count of 584, an increase of 14%; revenue per patient for the quarter increased to $56.20 compared to the prior year quarterly revenue per patient of $51.98, an increase of 8%.

The Company announced that the increase in revenue per patient was due in large part to the fact that esoteric testing represented 35% of net revenues in the current quarter compared to 28% in the same quarter of the prior fiscal year. The Company further noted that, there was a one-time charge against earnings in the amount of $.03 per share on a pre-tax basis as a result of restructuring the Strategic Marketing Agreement with Roche Diagnostics with respect to its CareEvolve business unit.

The Company also noted that there have been changes made to Medicare reimbursements for some of the pathology, or esoteric, billing codes. Although some of the changes represent increases in reimbursement, some of the changes represent decreases, particularly in the area of Flow Cytometry. While Flow Cytometry is a high growth area for the Company, so are other areas which have, in fact, seen an increase in reimbursement rates under the new schedule and it is difficult to determine what the net effect of the changes will be going forward. The Company stated that it believes that if the changes had been in effect during FY2004, the reduction in the net revenues of FY2004 solely attributable to the decrease in Flow Cytometry would have been less than 2% and the reduction to pre-tax income in FY2004 solely attributable to Flow Cytometry would have been somewhat less than 20%. The Company believes that this type of pro forma retrospective analysis, keeping all other variables constant except for the decrease in Flow Cytometry reimbursement rates, may not be realistic, and, more importantly, it believes that the effect of these reimbursement changes will be to change the competitive landscape and, along with the greater utilization of newer diagnostic technologies, create further opportunities for growth. The Company noted that its strategy has been based on diversification to promote growth and avoid reliance on any single reimbursement code and it has already implemented new initiatives through its sales and marketing strategies to compensate for these changes in reimbursement rates and continues to vigorously take advantage of new opportunities in the pathology segment of its business which the Company believes has significant potential.

The Company observed that during the course of FY2004, it acquired a cancer genetics laboratory and placed substantial resources, including additional professional, technical, marketing and sales personnel, into the expansion of its oncology and hematopathology services. The Company further observed that its subsidiary business operations have begun to contribute to the Company's total net revenues and appear poised to achieve profitability in the next fiscal year. The Company indicated that it has more than doubled its total space at its Elmwood Park location and is fully prepared for substantial growth in the next several years.

Marc D. Grodman M.D., President noted, "Fiscal Year 2004 was a year of growth for Bio-Reference Laboratories; it was also a year in which we substantially expanded our infrastructure. We finished the prior fiscal year with two great quarters and we have continued that growth throughout the current fiscal year. We expect this growth to continue in the foreseeable future as we continue to invest in both oncology and pathology initiatives which will broaden our capabilities and expand the geographical reach of our services. We believe that we have assembled the finest staff of hematopathologists and pathologists in our industry. Despite the expense of these improvements, we have still managed to attain the most profitable year in the Company's history. We acquired new laboratory technologies so that we can bring more testing in-house and fuel growth through an expanded in-house testing menu. We have revamped and expanded our sales and marketing force so that we can sustain the expansion that we have maintained for the past six quarters. We have upgraded our medical and technical staffs and technology capabilities so that we can provide the best science in our marketing space. We have expanded our facilities in order to better handle the growth opportunities that have been recently opened for us. We have moved into some exciting new areas of anatomic pathology and hematopathology and expect to grow as a major player in the national market arena."

Dr. Grodman continued, "This year, further consolidations have been announced in the laboratory space and further consolidations can be expected in the future. By virtue of this consolidation and our own strategy of growth and expansion, we have emerged as a major national player in the laboratory market. Our oncology business covers three-quarters of the country and is continuously expanding. Our correctional healthcare strategy has enabled us to take on business throughout most of the country and we are now recognized as the premier provider of correctional healthcare laboratory services. Our presence in the super region that we serve in the northeast part of the country is constantly growing and taking business from our competitors. Our organic growth has been sustained because we understand our markets and we carefully grow our business in segments of the market that we have competence and capability to serve. We will continue to execute this strategy and look for opportunities to take advantage of market consolidation to accelerate our current rate of growth. Our routine business grows because there is a tremendous demand in our marketplace for the service and support that we are able to provide; our esoteric business and our focused marketing specialties grow because we take great pains to understand these business opportunities and we make sure that we have the capability and capacity to meet the demands of these markets. We have done our preparation and we look forward to another year of sustained growth and opportunity."

The Company's fourth quarter earnings conference call is scheduled for today at 10:30 a.m. Eastern Standard Time. The live audio Web cast will be available at the Company's corporate Web site, www.bioreference.com and through www.streetevents.com. To listen to the call please go to either Web site ten 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 archived, on both Web sites, for 30 days following the call.

About Bio-Reference Laboratories, Inc.

The Company is the largest independent regional clinical laboratory operating in the Northeast with major market positions in physician offices, nursing homes and clinics. The Company also maintains specialized focused market offerings that are national in scope. These include GenPath, its cancer and genomics laboratory, and an expanding correctional health program. 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 based on claims data, enrollment data, prescription data and laboratory data. The Company also provides a comprehensive connectivity solution to physicians and laboratories nationwide through CareEvolve, its web based healthcare portal.

Bio-Reference Laboratories, Inc.
                       Statements of Operations
             (Dollars In Thousands, Except Per Share Data)

                             Three Months Ended        Year Ended
                                 October 31,           October 31,
                               2004       2003      2004        2003
                                 (Unaudited)            (Audited)

Net Revenues                 $37,744    $30,404   $136,184   $109,034
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Cost of Sales                 18,485     14,977     68,201     56,216
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Gross Profit on Revenues     $19,259    $15,427    $67,983    $52,818
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General and Administrative    15,421     11,923     55,163     43,533
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Operating Income              $3,838     $3,504    $12,820     $9,285
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Other Expense, Net               190        139        634        681
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Income Before Taxes           $3,648     $3,365    $12,186     $8,604
----------------------------------------------------------------------
Taxes                            335      1,118      3,670      2,064
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Net Income (Loss)             $3,313     $2,247     $8,516     $6,540
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Income (loss) Per Share         $.26       $.20       $.71       $.57
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Number of Shares          12,633,017 11,451,023 12,077,502 11,489,268
----------------------------------------------------------------------
Income (Loss) Per Share
 (Diluted)                      $.25       $.17       $.67       $.51
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Number of Shares
 (Diluted)                13,245,429 13,044,782 12,715,274 12,797,831
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                   Bio-Reference Laboratories, Inc.
                            Balance Sheets
                        (Dollars In Thousands)
                               (Audited)
                                              October 31,  October 31,
                                                  2004         2003

Cash & Cash Equivalents                          $6,681       $3,966
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Accounts Receivable (Net)                        40,952       32,913
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Plant, Property & Equipment (Net)                 9,276        4,763
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Intangible Assets (Net)                          10,628        8,142
----------------------------------------------------------------------
Other Assets                                      4,613        3,435
----------------------------------------------------------------------
                                                $72,151      $53,219
----------------------------------------------------------------------

----------------------------------------------------------------------
Accounts Payable                                $10,801       $7,900
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Notes Payable                                    10,333        8,718
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Long-Term Debt                                    7,124        3,135
----------------------------------------------------------------------
Other Liabilities                                 3,220        3,547
----------------------------------------------------------------------
Shareholder's Equity                             40,673       29,918
----------------------------------------------------------------------
                                                $72,151      $53,218
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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