Bio-logic Announces New Hearing Agreement with Premier Purchasing Partners, L.P.

MUNDELEIN, Ill. -- Bio-logic Systems Corp. (Nasdaq:BLSC), a designer and marketer of computerized medical electrodiagnostic equipment and disposables, today announced the signing of a new agreement with Premier Purchasing Partners, L.P., the group purchasing division of Premier, Inc., one of the largest healthcare alliances in the U.S. Under this multisource agreement, which is effective from September 1, 2005 through April 30, 2007, Bio-logic will offer its full range of auditory products and related accessories to Premier's affiliated hospital and healthcare systems.

"With a history of innovation, and a goal of improving health and the quality of life through providing cost-effective products and services, we have shared values with Premier," Roderick G. Johnson, president and chief operating officer of Bio-logic, commented. "Bio-logic has become a leader in the hearing field by developing a full range of products to both screen for and diagnose hearing problems, and by partnering with other leaders in the hearing community to bring state-of-the-art technologies to the marketplace. This agreement enables Premier hospitals and health care providers to continue to purchase our market leading products at very attractive prices, and to bring high quality care at a competitive cost to the patients they serve.

"Bio-logic offers a fully integrated suite of products and services for the hearing market. Launched only about a year ago, our HALO Ear Muffin(R) has gained strong acceptance among hearing professionals for its ease of use and baby-friendly features. The HALO is a disposable over-the-ear acoustic coupler that can be used with our ABaer(R) and Navigator(R) Pro M-A-S-T-E-R(R) systems, and also has demonstrated acoustic equivalence for use with competitive products. The ABaer is our leading infant hearing screening system, which allows babies to be screened efficiently through the use of Auditory Brainstem Response and/or Otoacoustic Emissions technology. The Navigator Pro is our flexible diagnostic platform system that can expand as we add new technologies. It can be used with software such as Stacked ABR(TM) to detect auditory nervous system abnormality, CHAMP(TM) for diagnosing cochlear hydrops and M-A-S-T-E-R for diagnosis of hearing loss. Together with our educational seminars and customer service programs, no other company provides a more complete range of products and services for the hearing professional.

"This new agreement with Premier, one of the leading healthcare alliances in the nation, confirms the acceptance of Bio-logic's product offering by their substantial user base and affords us the opportunity to further penetrate the hearing market. We are gratified that Premier has chosen Bio-logic as one of only two suppliers on this significant contract," Johnson concluded.

About Bio-logic

Bio-logic Systems Corp., headquartered in Mundelein, IL, designs, develops, assembles and markets computer-based electrodiagnostic systems and related disposables for use by hospitals, clinics, school districts, universities and physicians. The systems conduct tests that are typically used by medical practitioners to aid in the diagnosis of certain neurological disorders, brain disorders and tumors and sensory disorders, including audiological and hearing screening and diagnosis.

About Premier, Inc.

Premier, Inc., is a healthcare alliance entirely owned by more than 200 of the nation's leading not-for-profit hospital and healthcare systems. These systems operate or are affiliated with nearly 1,500 hospital facilities and thousands of other healthcare sites. Premier provides an array of resources, including group purchasing for more than $25 billion annually in supplies and equipment. Premier also offers supply chain, clinical and operational performance improvement products and services, and insurance programs. A leader in helping hospitals improve clinical outcomes while lowering costs, Premier maintains the nation's largest database for hospital quality benchmarking with more than three billion patient charge records and 2.8 terabytes of data. Premier has offices in Charlotte, NC; Chicago, IL; San Diego, CA; and Washington, D.C.

Cautionary Note Regarding Forward-Looking Statements 

This release contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Management has attempted to identify these forward-looking statements by using words such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "could," "should," "projects" or similar expressions, but these words are not the exclusive way of identifying these statements. These forward-looking statements are based on information currently available to management and are subject to a number of risks, uncertainties and other factors that could cause Bio-logic's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include general economic and business conditions, turnover in Bio-logic's sales force, lack of acceptance of new technology by clinicians and other health care professionals, the results of research and development efforts, technological changes, competition, potential changes in regulation by the FDA, costs relating to manufacturing of products, the timing of customer orders, the ability of certain suppliers to meet requirements, Bio-logic's performance under this agreement and other factors detailed from time to time in Bio-logic's filings with the Securities and Exchange Commission.

You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, Bio-logic undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.