Bio-Reference Laboratories, Inc. Announces Record-Breaking Year-End and Fourth Quarter Results.

Company surpasses $250 Million in net revenues and records Earnings Per Share (EPS) of $1.01

ELMWOOD PARK, N.J. -- Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) (Except for Per Share Data or where otherwise noted, Numbers are in Thousands) announced record-setting fourth quarter and year-end performance numbers. The Company recorded Q4FY07 revenues of $69,795, the best ever quarter in terms of revenues in corporate history and an increase of 29% over the $54,001 recorded in the fourth quarter, fiscal year 2006. Net income before taxes in Q4FY07 totaled $7,855; an increase of 22% compared with net income before taxes of $6,386 in Q4FY06. Net income after tax for Q4FY06 totaled $4,644 or $.34 per share as compared with $3,711 or $.28 per share in the corresponding quarter in FY06. Gross profits on revenues for the current quarter were $36,191 resulting in a margin for gross profit on revenues of 52%, versus the $28,600 reported for the prior fiscal year fourth quarter, which was 53%. Revenue per patient for the fourth quarter of the current fiscal year was $71.06, an increase of 6% over the $67.00 reported for the same quarter of the prior fiscal year. The number of patients served increased 22% to 972 in the current quarter from the prior year fourth quarter total of 797. Esoteric business for the Company was 45% of revenues for the fourth quarter of the current fiscal year.

Full year revenues increased to $250,431, an increase of nearly 30% over the same period revenues of $193,134 in the prior fiscal year. Net income after taxes for the current year was $13,957 resulting in an EPS of $1.01; this was an increase of 24% from the prior fiscal year net income after taxes of $11,291 which resulted in an EPS of $.86. The Company reported gross profit on revenues for the 2007 fiscal year of $126,402, resulting in a margin for gross profit on revenues of over 50% compared to the prior year same period of $97,054 which resulted in a margin of 50%. The number of patients served increased nearly 20% to 3,681 in the fiscal year from the prior fiscal year total of 3,082.

Marc D. Grodman, MD, CEO, commented "A year ago we looked forward to 2007 with both anticipation and concern. Significant changes in our marketplace presented us with an unprecedented opportunity for growth in the routine physician market in the New York Metropolitan area. Our recent acquisition of GeneDx presented us with the opportunity to expand our business into the area of clinical genetics. The growth of our GenPath division and changes in the competitive markets gave the promise of continued establishment of our position as a premier provider of oncology diagnostics. On the other hand, we were faced with significant questions about how the routine physician market opportunity would actually play out since it was based on a huge disruption of the existing market conditions. Now that the dust has settled it is clear that by most estimates, we have seized upon that opportunity and succeeded."

Dr. Grodman further noted: "Our financial metrics have enjoyed strong comparisons on a year over year basis. Despite the high costs of bringing on so much new business, we have been able to maintain a steady state in controlling our expenses and margins. The two acquisitions that we made at the end of last fiscal year, GeneDx and DPS, have contributed substantially to our growth, particularly GeneDx due to expansion of existing services and introduction of new ones. GenPath continued to grow well, exceeding the overall growth rate of the Company in general as it has for the past several years. We were able to fully capitalize on the opportunity presented by the disruptions in the routine physician markets in the New York marketplace and most of the increase in our patient count was due to this segment of our business. This growth, often reimbursed at lower rates, does not mean that the work performed was routine. Some of this business includes very complex testing that is associated with higher costs; it is just simply reimbursed at lower prices. Controlling the costs associated with this influx of lower reimbursed business, especially the cost of goods, proved to be one of the most challenging aspects of this year. In our experience, it is extremely difficult to see volume increases in lower reimbursed business and not also see weakness in margins or expectations. Nevertheless, we seized the opportunity and maintained the value of our franchise in the Northeast regional market. We play a significant role in this area with an infrastructure second to none. The value of this franchise has never been higher.

"GenPath has continued to emerge as the laboratory of choice throughout most of the country for oncologists and hematologists dealing with hematopathology cases. GeneDx holds an enviable position as the genetic laboratory of choice among geneticists throughout the country. We have not only been able to maintain and enhance that reputation, but we have been able to expand it through the introduction of GenomeDx, our constitutional array based on an oligonucleotide platform; We continue to work on ground breaking platforms to fulfill our goal of bringing more tools to the clinicians and making personalized medicine a reality for all. We look forward to the coming year. It will be a different year because the marketplace has now assimilated the changes of 2007. The challenge of 2008 will be to adjust to the changes that reduced growth will bring and to continue to find ways to scale the business and improve margins. As we have repeatedly demonstrated, we will grow this business. However, much is dependent on the kind of growth we will enjoy. We must grow in those specialized testing areas that have made us unique while protecting our franchise value as a major regional laboratory. With so much in flux as it was last year, it is difficult to offer accurate guidance at this early point in the year; however, we expect that our topline revenues will increase by at least 15% and that our net income will increase by at least 20% during the 2008 fiscal year."

The Company's year-end earnings conference call has been scheduled to take place this morning, December 20th, 2007 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 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 as well as other laboratories, which includes laboratory reporting and ordering, as well as laboratory to physician communications and cumulative reporting, through CareEvolve, its web-based healthcare portal.

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Bio-Reference Laboratories, Inc.                    >





Balance Sheet                                       >





(Dollars in Thousands)                              >





                                                    >





                                       October 31,  >
October 31,




                                              2007  >
2006




Cash & Cash Equivalents                $11,897  >
$8,954




Accounts Receivable (Net)                   86,018  >
67,778




Plant, Property & Equipment (Net)       20,525  >
12,084




Intangible Assets (Net)                     23,231  >
22,233




Other Assets                                12,903  >
9,424




Total                                     $154,574  >
$120,473




                                                    >





Accounts Payable                           $24,576  >
$18,692




Revolving Note                              23,252  >
16,696




Long-Term Debt                              12,682  >
10,020




Other Liabilities                            8,797  >
6,286




Shareholder's Equity                        85,267  >
68,779




Total                                     $154,574  >
$120,473

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