Bio-logic Partners With Direct Medical/Managed Healthcare Associates Buying Group; Three-Year Sole Source Agreement for Hearing Screening and Diagnostics.

Business Editors, Health/Medical Writers

MUNDELEIN, Ill.--(BW HealthWire)--March 21, 2002

Bio-logic Systems Corp. (Nasdaq: BLSC), a designer and marketer of computerized medical electro-diagnostic equipment and disposables, announced today that it has partnered with Direct Medical and Managed Healthcare Associates (MHA), who have created a joint entity focusing on the capital equipment needs of a growing membership of 1500+ hospitals. This contract gives Bio-logic a three-year sole source agreement for all hearing screening and diagnostic equipment, and a three-year dual source agreement on all neurology and sleep systems sold to its members.

Roderick G. Johnson, president and chief operating officer, commented, "Combining the market presence and influence of Direct Medical/MHA with Bio-logic's state-of-the-art screening and diagnostic systems will enable their member hospitals to purchase industry-leading technology and disposables at cost-competitive prices. Direct Medical/MHA recognizes that an exclusive and dual-source relationship with Bio-logic will benefit its members today and into the future as technologies and diagnostics advance."

Johnson continued, "As the sole source provider of hearing screening and diagnostic equipment and a dual source provider of neurology and sleep systems, we will actively promote the ABaer(TM), AuDX(R), Ear Muffin(TM), Navigator(R) Pro, Ceegraph(TM) and Sleepscan(TM) to these 1500+ independent hospitals, while Direct Medical/MHA also helps steer the purchasing efforts of their members to Bio-logic. This partnership greatly increases the visibility of Bio-logic's diagnostic systems."

Bio-logic Systems Corp., headquartered in Mundelein, IL, designs, develops, assembles and markets computer-based electro-diagnostic systems for use by hospitals, clinics, universities and physicians worldwide. The modular and portable systems conduct tests that are typically used by medical practitioners to perform automated hearing screening and audiological diagnostics, as well as aid in the diagnosis of certain neurological and sleep disorders, brain disorders and tumors.

Direct Medical/MHA is a joint entity created through the affiliation of Direct Medical with MedEcon and with Managed Healthcare Associates (MHA), whose entire focus is the capital equipment needs of a growing membership of hospitals. Direct Medical/MHA's membership combines Direct Medical's membership of independent hospital facilities along the Southern and Gulf Coast, representing a base of 385 facilities in Alabama, Louisiana, Mississippi, Florida, Texas, Georgia and the Carolinas, with MHA's national base of 1000+ independent hospitals representing 155,000 acute care beds and deep ties to long-term care facilities through its unit dose pharmacy program. The Direct Medical/MHA purchasing group concentrates entirely on depreciable goods. This focused approach and the specialized knowledge available, at no cost to the facility, is designed to become a constantly used resource for hospital personnel.

Prospective investors are cautioned that the statements in this release that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Reform Act of 1995, including statements concerning the company's future products, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated. These risks include product demand and market acceptance uncertainties; the ability to recruit and train the necessary number of sales representatives and installation technicians; the effect of general economic and business conditions, the results of research and development efforts, technological changes and competition, potential changes in regulation by the FDA, capacity and supply constraints, costs relating to manufacturing of products and the timing of customer orders detailed elsewhere in this release and from time to time in the Company's filings with the Securities and Exchange Commission