Bio-Reference Laboratories, Inc. Posts 25% Increase in Q1 After-Tax Net Income Based on 17% Increase in Year over Year Revenues; Company Reports a 21% Increase in Operating Income for the Quarter over the Prior Year Same Quarter.

ELMWOOD PARK, N.J. -- Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) (Numbers in Thousands Except Per Share Data or where otherwise noted) released its first quarter, fiscal year 2006 earnings today for the three months ending January 31. The Company had net revenues for the quarter of $42,918, an increase of 17% over the $36,835 of net revenue recorded in the first quarter fiscal year 2005. The net revenue increase was based on patient count of 730, a 13% increase over the prior year quarterly patient count of 648. The remainder of the increase in net revenue is attributable to higher revenue per patient, which rose from $56.06 per patient in the same quarter 2005 to $58.26 in the current quarter. On a fully taxed basis, the Company reported net income of $1,153, resulting in a fully diluted EPS of $.09 per share compared to the same quarter prior year net income of $925 and $.07 per share. The Company reported gross profit on revenues for the current quarter of $20,334, resulting in a margin for gross profit on revenues of 47% compared to the prior year $17,444 which resulted in the same margin of 47%. Net income before taxes for the current quarter increased 24% to $1,755 from the prior year quarter net income before taxes of $1,420.

The Company noted that esoteric testing climbed slightly to 36% of net revenues compared to 34% of net revenues in the first quarter of the prior year. On a sequential basis, esoteric testing in the fourth quarter 2005 was 35%. The Company noted that the first quarter is historically impacted by both weather and reduced clinical testing during the holiday season running from Thanksgiving through the first of the year. Mild weather in the Northeast during the quarter had little impact on the Company's first quarter results, but there was a modest effect resulting from a transit strike in New York City during the month of December. Cash Flow for the current quarter was positive, only the second first quarter in the last five years that the first quarter has shown positive cash flow. The Company's fourth quarter FY2005 acquisition of a pathology laboratory in the Hudson Valley has surpassed Company expectations for its operations, but there has been a delay in collecting payment for some of the billings due to delays in getting filing approvals.

Marc D. Grodman M.D., President noted, "When we reported our year end results for fiscal year 2005, we stated that we believed the Company was back on track to where it left off in fiscal year 2004. The changes of 2005 are behind us and we believe that our first quarter results show that we are once again building the value that our shareholders have been used to for the last five years. Our revenues showed a hearty increase over prior year revenues and we were able to gain ground on nearly all of our financial metrics. Our operating income was up 21% over the prior year, net income before and after taxes were up 24% and 25% respectively. As we have often explained, first quarter operating margins do not leverage well because of the nature of our high fixed cost industry where the expenses do not diminish commensurate with the fall off in revenues that usually occurs during the first quarter. We indicated previously that we expected to see some leverage in our Other Selling, General and Administrative expenses and, in fact, that leverage was there in the quarter. Numbers alone, however, do not tell the story. We are pleased with the overall improvement of our first quarter results compared to both of the prior two fiscal years, but we are even more pleased with the execution of our business strategy."

Dr. Grodman continued, "We believe that GenPath, our oncology laboratory, is now recognized as the premier hematopathology laboratory in the country. Our Correctional Healthcare program continues to grow even though it is already recognized by many as the dominant laboratory in its space. Our regional lab continues to grow and is being energized by several new initiatives that will enable it to expand even more rapidly over the next few years. We have talked about these things for the last several years. We are now finally being recognized by managed care as having something to offer beyond simple laboratory capability to improve the efficiency and effectiveness of managed care operations. Our informatics solutions have placed us in a position to offer broader, more efficient solutions to managed care. In the short run, it is impossible to foresee how these opportunities will turn out; but, in the long run, we believe that we are helping some of the managed care companies to re-think the role the laboratory can play in providing thorough and efficient healthcare. We have put long term strategies in place that should enable us to sustain our growth and continue to improve our value to shareholders for many years to come."

The Company's first 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 as well as 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
             (Dollars in Thousands Except Per Share Data)
                              (Unaudited)

                                                Three Months Ended
                                                    January 31,
                                               2006           2005
                                               ----           ----
Net Revenues                             $      42,918  $      36,835
----------------------------------------------------------------------
Cost of Sales                                   22,584         19,391
----------------------------------------------------------------------
Gross Profit on Revenues                 $      20,334  $      17,444
----------------------------------------------------------------------
General and Administrative                      18,337         15,790
----------------------------------------------------------------------
Operating Income                         $       1,997  $       1,654
----------------------------------------------------------------------
Other Expense, Net                                 242            234
----------------------------------------------------------------------
Income Before Taxes                      $       1,755  $       1,420
----------------------------------------------------------------------
Taxes                                              602            495
----------------------------------------------------------------------
Net Income                               $       1,153  $         925
----------------------------------------------------------------------
Income Per Share                         $         .09  $         .07
----------------------------------------------------------------------
Number of Shares                            12,992,367     12,666,689
----------------------------------------------------------------------
Income Per Share (Diluted)               $         .09  $         .07
----------------------------------------------------------------------
Number of Shares (Diluted)                  13,406,809     13,345,183
----------------------------------------------------------------------

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

                                          January 31,     October 31,
                                             2006            2005
                                             ----            ----
Cash & Cash Equivalents                  $       5,343  $       4,303
----------------------------------------------------------------------
Accounts Receivable (Net)                       56,407         53,113
----------------------------------------------------------------------
Plant, Property & Equipment (Net)               11,479         11,927
----------------------------------------------------------------------
Intangible Assets (Net)                         11,855         11,998
----------------------------------------------------------------------
Other Assets                                     6,632          7,032
----------------------------------------------------------------------
                                         $      91,716  $      88,373
----------------------------------------------------------------------

Accounts Payable                         $      13,454  $      14,346
----------------------------------------------------------------------
Note Payable-Bank                               13,159         10,888
----------------------------------------------------------------------
Long-Term Debt                                   3,473          3,956
----------------------------------------------------------------------
Other Liabilities                                9,624          8,468
----------------------------------------------------------------------
Shareholder's Equity                            52,006         50,715
----------------------------------------------------------------------
                                         $      91,716  $      88,373
----------------------------------------------------------------------

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.