Bio-Reference Laboratories Upgrades Guidance, Reports Improved Margins and Increased Esoteric Testing; CEO Discusses Areas of Improvement in Quarterly Conference Call.

Business Editors

ELMWOOD PARK, N.J.--(BUSINESS WIRE)--May 31, 2002

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) held its quarterly analysts' call yesterday and Marc Grodman, MD, CEO, reported substantial financial improvement for the Company.

In highlighting some of the areas reported in the Second Quarter earnings release from earlier in the day, Dr. Grodman emphasized that the Company increased quarterly net income year over year by 168% in the second quarter and achieved a Company record 47% in operating margins. Dr. Grodman noted that Days Sales Outstanding (DSO) have shown dramatic improvement during the current fiscal year, standing at 104 days on April 30, 2002. While Dr. Grodman pointed out that such dramatic improvement cannot be predicted in future quarters, the Company believes that it will continue to produce slow, steady improvement in these areas.

When asked about guidance, Dr. Grodman admitted that guidance provided at the end of last year indicating that the Company will increase net revenues by 20% and net profits by 50% needs to be revised based on the Company's strong showing during the first six months of the current year. The Company has already exceeded the net profits posted in fiscal year 2001 during the first six months of the current year. The Company continues to believe that the top line net revenue will increase by 20% during the current fiscal year, and is comfortable stating that net income will at least double during the current fiscal year.

Dr. Grodman reported that esoteric testing at Bio-Reference has continued to outpace routine testing during the second quarter, sustaining a 27% growth rate and accounting for 25% of the total laboratory revenues. SG&A fell to 37% of net revenues in the second quarter of the current fiscal year compared to 39% in the same quarter of the prior year.

Revenue per patient was $49.45 for the current quarter, an increase of 6% over the prior year quarter. Cash generated from operations increased by $3,374,199 compared to the end of the prior fiscal year second quarter, while working capital increased to $9,100,000 from $3,300,000 at the same time in the prior fiscal year.

In response to questions from callers, Dr. Grodman stated that interest expense is down considerably as a result of the Company's reduced credit line and a reduction in rates associated with the Company's strong financial performance. As a result of changes in the sector arising out of corporate acquisitions by both Quest and LabCorp, Bio-Reference believes it is now the third or fourth largest full service clinical laboratory in the country. The current business environment has created opportunities for Bio-Reference, and the Company will consider growth through acquisitions when such acquisitions will be synergistic or accretive thereby providing expansion of the Company's regional business or providing additional services or expertise in specialty areas.

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 that includes disease management, laboratory reporting and ordering, as well as claims eligibility and processing, to physicians through CareEvolve, its web-based healthcare portal.

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.