Bio-Reference Laboratories Reports Fiscal Year 1998 Results.

ELMWOOD PARK, N.J.--(BUSINESS WIRE)--Feb. 12, 1999

Announces Record Revenues

Bio-Reference Laboratories, Inc. (NASDAQ Small Cap: BRLI) announced net income of $596,583 for its fiscal year ended October 31, 1998.

The decrease in net income was due in part to the decrease in the non-recurring gain related to the sale of certain assets of its GenCare Biomedical business unit from $2,025,689 in fiscal 1997 to $333,900 in fiscal 1998. Without the non-recurring gain, operating income decreased 44% to $1,064,965 from $1,885,039 for the prior year. Net income before income tax and before the non-recurring gain was $224,383 compared to $1,035,486, a reduction of 78%. The Company had record revenues for fiscal year 1998 of $46,553,730, a 20% increase over its revenues for fiscal year 1997.

The increase in net revenues is primarily attributable to the April 9, 1998 acquisition of Medilabs, Inc. ("MLI"). The decrease in operating income and adjusted net income was primarily attributable to the increase in expenses due to the acquisition of MLI. In the fiscal year preceding its acquisition, MLI incurred a loss of over $1.6 million. For the seven month period commencing with the acquisition and ended October 31, 1998, MLI incurred a net loss of only $120,000.

Dr. Marc Grodman, President and Chief Executive Officer, stated "This year's results were expected due to the acquisition of MLI last April and the operation of two parallel facilities within 30 miles of each other. Given the low reimbursement levels of the acquired business, the maintenance of accounts was critical to the success of the transaction. While we have cut the expenses of MLI, and progressively merged more functions into the parent lab, we have also maintained the MLI business. In November 1998, MLI was formally awarded a contract for laboratory services for the New York State Department of Corrections, a significant portion of which was previously serviced by MLI. The estimated annual revenues of this contract is approximately $6 million. As we continue to merge the operations, and decrease excess capacity, we expect the greater synergies will be accretive to earnings in the future."

Dr. Grodman continued, "The recent transaction, whereby Quest Diagnostics purchased the clinical laboratory unit of Smith-Kline Beecham, PLC for a value of over 90% of annual revenues, shows there is a significant disparity between the public market valuation of clinical laboratories and the values upon which transactions within the industry are based. This year, the Company will continue to grow our existing business and continue to seek ways to merge our two operations so as to improve profitability. However, the real key to creating greater shareholder value is to demonstrate how the information clinical laboratories generate is part of the overall process by which quality and efficient health care may be achieved. The Company, as in the past year, continues to seek out transactions which will accomplish that goal."

Statements included in this release that are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including, without limitation, those relating to the Company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, including economic, competitive, technological, governmental regulation and other risks identified from time to time in the Company's reports filed with the Securities and Exchange Commission.

Bio-Reference Laboratories, Inc. is a highly automated computer-driven clinical laboratory serving specialty markets in the New York/Tri-State metropolitan area. The Company performs highly sophisticated testing procedures in addition to high-volume routine testing in clinical chemistry, special chemistry, endocrinology, serology, diagnostic immunology, microbiology, rheumatology, parasitology, cellular immunology, radioimmunoassay, hematology, immunohematology, cytology, anatomic pathology and urinalysis.

The Company's common stock is traded on the Nasdaq Small Cap system under the symbol "BRLI". -0-

                   BIO-REFERENCE LABORATORIES, INC.
                       STATEMENTS OF OPERATIONS
                               (Audited)
                        Year Ended October, 31
                                    1998           1997

Net Revenues                   $ 46,553,730    $ 38,660,184
Cost of Services                 25,058,008      19,339,274

Gross Profit on Revenues       $ 21,495,722    $ 19,320,910
General and Administrative       20,430,757      17,435,879
Operating Income               $  1,064,965    $  1,885,039
Non-Recurring Gain                  333,900       2,025,689
Other Expenses, net                 840,582         849,545

Net Income Before Income Tax   $    558,283    $  3,061,175
Provision for Income Taxes
 (Benefit)                          (38,300)       (138,740)

Net Income                     $    596,583    $  3,199,915

Net income Per Share           $        .08    $      .36