Bio-Reference Laboratories, Inc. Announces Substantial Gains on Record Operating Results, Including a 53% Increase in Taxed Net Income on a 16% Increase in Net Revenues.

Business Editors

ELMWOOD PARK, N.J.--(BUSINESS WIRE)--Sept. 4, 2003

BRLI reports 96% gain in pre-tax Net Income and 100% growth in

pre-tax EPS on record Net Revenues

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) released its third quarter, fiscal year 2003 earnings today for the three months ending July 31.

The Company posted record pre-tax net income of $3,000,464 on record net revenues for the quarter of $28,919,575, compared to pre-tax net income of $1,532,968 on revenues of $24,893,138 recorded in the third quarter of fiscal year 2002. These results represent an increase of 96% in pre-tax income and a 16% increase in revenues. On a fully diluted basis, Earnings per Share (EPS) on a pre-tax income basis doubled to $.24 per share over the prior year pre-tax EPS of $.12 per share. Gross Profit on Revenues increased to $14,577,857 and represented a margin for gross profit on revenues of 50% compared to the prior year's $12,042,353 and 48%. Net income after taxes for the current quarter was $2,300,463 or $.18 EPS compared to the prior year net income after taxes of $1,504,321 or $.12 EPS, increases of 53% and 50% respectively. Patient count for the current quarter was 547,568 compared to the prior year count of 503,196, an increase of 9%; revenue per patient for the quarter increased to $52.63 compared to the prior year quarterly revenue per patient of $49.38, an increase of 7%.

Although nine month numbers reflect adverse conditions previously reported during the first six months, pre-tax net income rose to $5,239,344 on net revenues of $78,629,465 compared to the same period for the prior year when the Company posted pre-tax net income of $3,595,592 on net revenues of $71,051,327, representing year over year growth of nearly 46% on pre-tax net income and 11% on net revenues. These nine month figures put the Company on target to reach its previously announced guidance that for the entire 2003 fiscal year, it will post an increase in net revenues that will be in the double digits and it will post pre-tax net income that will be at least 50% greater than the prior year.

The Company noted that esoteric testing represented about 28% of revenues for the quarter. Working capital increased from approximately $12,651,000 at the end of fiscal year 2002 to approximately $15,853,000 at the end of the third quarter, fiscal year 2003. The Company further announced that pursuant to the Stock Buy-Back Plan that it announced in March, it has now re-purchased a total of 229,700 shares of its common stock.

Marc D. Grodman M.D., President noted, "When we reported on our second quarter, we stated that we saw strong demand in the marketplace and signals in our earnings that indicated healthy growth for the balance of the current fiscal year. It is clear from our strong, record-breaking third quarter that those signals were correct. We see strong demand for clinical laboratory services in the marketplace and our strategy puts us in a great position to capitalize on that demand. Diagnostic technologies are constantly being developed, resulting in more tests being ordered by physicians; these new tests represent valuable tools for the healthcare market. We have positioned ourselves to take advantage of the technology developments in the clinical laboratory market and we will continue to develop strategic relationships that will enable us to grow as new tests and new markets develop. We have recently announced the creation of a Scientific Advisory Board, which will be chaired by John S. Bennett, MD, a world-renowned authority on the treatment of leukemia/lymphoma and myelodysplasia; we will be announcing the remaining members of our Scientific Advisory Board over the next few weeks. Our GenPath unit, which specializes in oncology and hematology testing, as well as our new Coagulation laboratory, is already led by outstanding and exceptionally talented physicians and practitioners. There are tremendous market opportunities in these areas of clinical laboratory medicine and our staff, supported by our Scientific Advisory Board, will definitely be up to the task of taking advantage of those opportunities."

Dr. Grodman continued, "We have benefited from the growth in the clinical laboratory marketplace as can be seen from our net revenue and patient count numbers. We have become more efficient in our operations as can be seen from our improved operating margins, net income and earnings. We have a strong and experienced management team that knows the laboratory industry and has been able to take advantage of the changes in that market. There are not many clinical laboratories left in the public markets, but as we continue to execute on our strategy and convince the markets and our shareholders that we are an timely, efficient and strategic investment, we will look for acquisitions and other growth opportunities that will supplement our proven ability to achieve organic growth. While we must live with the realities of being a regional laboratory in the Northeast of the United States, such as weather or other adverse conditions, we are convinced that we have put together a team and a strategy that will continue to fuel our strong growth in challenging times."

The Company's third 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 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.

                   Bio-Reference Laboratories, Inc.
                       Statements of Operations
                              (Unaudited)

                        Three Months Ended       Nine Months Ended
                             July 31,                 July 31,
                       2003         2002        2003         2002

Net Revenues       $28,919,575  $24,893,138   $78,629,465  $71,051,327
------------------ ------------------------- -------------------------
Cost of Sales       14,341,718   12,850,785    41,238,794   38,425,095
------------------ ------------------------- -------------------------
Gross Profit on
 Revenues          $14,577,857  $12,042,353   $37,390,671  $32,626,232
------------------ ------------------------- -------------------------
General and
 Administrative     11,420,400   10,319,667    31,609,710   28,341,000
------------------ ------------------------- -------------------------
Operating Income    $3,157,457   $1,722,686    $5,780,961   $4,285,232
------------------ ------------------------- -------------------------
Other Expense, Net     156,993      189,718       541,617      689,640
------------------ ------------------------- -------------------------
Income Before Taxes $3,000,464   $1,532,968    $5,239,344   $3,595,592
------------------ ------------------------- -------------------------
Taxes                  700,001       28,647       946,000      121,355
------------------ ------------------------- -------------------------
Net Income (Loss)   $2,300,463   $1,504,321    $4,293,344   $3,474,237
------------------ ------------------------- -------------------------
Income (loss) Per
 Share                    $.20         $.13          $.37         $.31
------------------ ------------------------- -------------------------
Number of Shares    11,423,483   11,586,003    11,502,016   11,308,204
------------------ ------------------------- -------------------------
Income (Loss) Per
 Share (Diluted)          $.18         $.12          $.34         $.27
------------------ ------------------------- -------------------------
Number of Shares
 (Diluted)          12,709,076   13,068,750    12,748,984   12,712,045
------------------ ------------------------- -------------------------



                   Bio-Reference Laboratories, Inc.
                            Balance Sheets
                              (Unaudited)

                                                July 31,   October 31,
                                                  2003        2002

Cash & Cash Equivalents                      $3,534,074    $3,403,365
------------------------------------- -------------------- -----------
Accounts Receivable (Net)                    31,201,106    28,698,931
------------------------------------- -------------------- -----------
Plant, Property & Equipment (Net)             3,584,539     3,004,387
------------------------------------- -------------------- -----------
Intangible Assets (Net)                       8,284,769     8,711,459
------------------------------------- -------------------- -----------
Other Assets                                  2,781,616     3,624,032
------------------------------------- -------------------- -----------
                                            $49,386,104   $47,442,174
------------------------------------- -------------------- -----------

------------------------------------- -------------------- -----------
Accounts Payable                             $7,653,970    $6,871,331
------------------------------------- -------------------- -----------
Notes Payable                                 9,286,546    10,546,010
------------------------------------- -------------------- -----------
Long-Term Debt                                2,198,165     2,502,150
------------------------------------- -------------------- -----------
Other Liabilities                             2,642,797     3,315,614
------------------------------------- -------------------- -----------
Shareholder's Equity                         27,604,626    24,207,069
------------------------------------- -------------------- -----------
                                            $49,386,104   $47,442,174
------------------------------------- -------------------- -----------

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