Bio-Reference Laboratories Posts Record Profits On Record Revenues for Second Quarter.

Business Editors, Health/Medical Writers

BIOWIRE2K

ELMWOOD PARK, N.J.--(BW HealthWire)--June 14, 2001

Company continues to extend record growth to nine consecutive

quarters

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) reported record income of $502,501, or $.05 per share, on record revenues of $19,831,231 for the fiscal second quarter ended April 30, 2001, an increase of 22% over the second quarter FY2000 revenues of $16,286,141. The record income compared favorably to a loss of $(122,283) for the second quarter FY2000 and was the largest quarterly profit in the Company's history, excluding a one-time gain for the sale of assets. Gross Profit for the period rose 25% to $8,928,342 from $7,161,988 in the second quarter FY2000. The Company's improvement was based on organic sales growth as the second quarter FY2001 patient count increased 25% to 426,832 from 340,108 in the second quarter FY2000.

During the six month period ended April 30, 2001, the net revenues increased 22% from $31,315,702 to $38,218,403, gross profit increased 25% from $13,686,106 to $17,054,790, and the Company recorded a profit of $624,530 versus a loss of $(217,848) when compared to the six month period ended April 30,2000. Patient count increased by 22% from 652,499 to 797,083 over the same six-month period.

During the three month period ended April 30, 2001, Bio-Reference announced that it has executed a contract to provide the clinical laboratory work for the Eastern Pennsylvania state prisons, expanding its prison healthcare program into the state of Pennsylvania. The Company's PSIMedica business unit entered into a Master Reseller Agreement with XCARE.net to provide customers of XCARE with data analytics. The Company also announced that Morton Topfer, former Co-CEO and Vice Chairman of Dell Computer, has joined its Board of Directors and invested in Bio-Reference Laboratories.

Marc Grodman, MD, President, CEO and Chairman of the Board, noted, "The strong performance of the Company during the second quarter validates the Bio-Reference business strategy that we have been articulating for the past several months. It is and has been our plan to grow our core laboratory business, especially in the areas of oncology and genomics, through aggressive marketing and sales and through the implementation of our vertical market business development. Our vertical market strategy calls for us to utilize the full potential of the clinical laboratory, including the inherent connectivity of the lab and the underlying value of the laboratory data that we provide, to expand and protect our market share. Our recent sustained growth has not been based on price increases, but has been based on expansion of our testing services and growth in patient count."

Dr. Grodman continued, "Bio-Reference Laboratory is an automated, high volume, full service laboratory with specialty boutique capability. Our esoteric and specialty services, especially our oncology and genomics testing, have become extremely important in sustaining our record revenues. On the other hand, our higher volume prison healthcare and institutional business has required that we implement and maintain highly efficient, cost effective operations. CareEvolve, our connectivity solution, is expected to be deployed as a valuable tool for not only our own laboratory, but as a plug and play solution for other laboratories and provider groups as well. PSIMedica, our Clinical Knowledge Management unit, uses all available data sources, including laboratory data, to provide complex analytics that enable improved patient care. We believe that the future of the clinical laboratory is not simply to be a processing plant, but to be the extended healthcare provider that will play an important role in the delivery of quality and efficient health care."

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's wholly owned subsidiary, CareEvolve, is a physician-centric connectivity solution that seeks to enhance physician-patient and physician-payer electronic communications on a secure basis, including communicating laboratory results, e-mail, prescriptions, payer verification and eligibility, as well as offering many other value-added Internet based services to its physician members. PSIMedica, a business unit of the Company, is a clinical knowledge management (CKM) organization offering an array of information solutions for improving healthcare cost and quality performance.

                   BIO-REFERENCE LABORATORIES, INC.
                       STATEMENTS OF OPERATIONS
                              (Unaudited)

                          Three months ended      Six months ended
                          ------------------      ----------------
                              April 30,                April 30,
                             ---------                ---------
                         2001        2000         2001         2000
                         ----        ----         ----         ----

Net Revenues         $19,831,231  $16,286,141  $38,218,403 $31,315,702
Cost of Sales         10,902,889    9,124,153   21,163,613  17,629,596
                     -----------  -----------  ----------- -----------
Gross Profit on
 Revenues            $ 8,928,342  $ 7,161,988  $17,054,790 $13,686,106
General and
 Administrative        7,978,813    6,912,465   15,546,136  13,202,487
                       ---------  -----------  ----------- -----------
Operating Income     $   949,529  $   249,523  $ 1,508,654     483,619
Other Expense, net       447,028      371,806      884,124     701,467
                         -------  -----------  ----------- -----------
Income (Loss)        $   502,501  $ (122,283)  $   624,530 $ (217,848)

Income (Loss) Per
 Share               $       .05  $     (.02)  $       .07 $     (.03)
Number of Shares       9,379,782    8,114,004    8,942,616   8,045,726
Income (Loss) Per
 Share:
 Assuming Dilution   $       .05  $     (.02)  $      .06  $     (.03)
Number of Shares:
 Assuming Dilution    10,401,006    8,114,004   9,963,840    8,045,726

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.

This release and prior releases are available on the KCSA Public Relations Worldwide Web site at www.kcsa.com.