Bio-logic Signs Exclusive Multi-Year License Agreement with Northwestern University to Develop and Commercialize Innovative Auditory Processing Test.

MUNDELEIN, Ill. -- Bio-logic Systems Corp. (Nasdaq:BLSC), a designer and marketer of computerized medical electro-diagnostic equipment and disposables, today announced the signing of an exclusive multi-year license agreement with Northwestern University to develop and commercialize an innovative product for the assessment of auditory processing based on proprietary technology developed by Auditory Neuroscience Laboratory scientists at Northwestern University. The BioMAP (Biological Marker of Auditory Processing) is used to quickly and objectively identify disordered auditory processing of sound that has been associated with learning impairments in many children. These children have a high likelihood of benefiting from remediation strategies involving auditory training.

"Many factors can contribute to a diagnosis of a learning problem and current testing methodologies have not been consistent or reliable for diagnosing individuals with learning disabilities. This new technology represents a dramatic change in the method of diagnosing such individuals and in determining those who will benefit from auditory training. The BioMAP adds an objective, valid and reliable means of identifying those individuals with auditory processing disorders to the battery of behavioral and evaluative tests currently in use by education diagnostician specialists," said Gabriel Raviv, chairman and chief executive officer, Bio-logic Systems Corp.

The BioMAP reflects neural activity produced by the auditory brainstem in response to speech. These neural events mimic the acoustic characteristics of the speech signal with remarkable fidelity. Unlike traditional brainstem evoked response recordings using simple clicks or tone bursts, the BioMAP uses a speech syllable that better reflects the acoustic and phonetic complexities characteristic of speech. Objectively measured with electrodes placed on the scalp, the BioMAP is a robust and repeatable speech-evoked response that can reliably identify individuals with deficits in the timing of neural responses that cannot be revealed with other stimuli.

"The original versions of BioMAP have been used to demonstrate that brainstem-level neural timing deficits exist in roughly 30 percent of children with language-based learning problems such as dyslexia, and in children whose speech perception is extraordinarily disrupted by environmental noise. In our experience, children with these timing deficits appear to benefit most from remediation strategies involving auditory training. We anticipate that our partnership with Bio-logic will be fruitful in making this objective marker of auditory function available to clinics and private practices worldwide," said Nina Kraus, Ph.D., director of the Auditory Neuroscience Laboratory.

"This new project represents Bio-logic's initial entry into the market of clinical evaluation of learning disabilities and central auditory processing disorders, which is a significant opportunity for the company and the industry in the future. For individuals with language-based learning disabilities, as well as the large cross section of society with specific deficits in speech perception, such as seniors and individuals with hearing loss, BioMAP represents an important step forward in the objective assessment of the auditory system's ability to encode complex speech sounds. An objective evidence-based identification of a brainstem encoding source of a perceptual problem better enables a clinician to recommend an appropriate remediation program. With our experience and success in bringing such advances to market, we are well positioned to make the BioMAP an important tool for professionals specializing in learning and hearing problems in hospitals, clinics and private practices throughout the world," concluded Raviv.

About Bio-logic

Bio-logic Systems Corp., headquartered in Mundelein, IL, designs, develops, assembles and markets computer-based electro-diagnostic 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 the Auditory Neuroscience Laboratory

The Auditory Neuroscience Laboratory at Northwestern University was founded in 1990 by Nina Kraus, Ph.D. Together with her colleagues, staff and graduate students, Dr. Kraus has been investigating neural encoding of complex sounds such as speech and music in normal listeners and a variety of clinical populations. For information on the Auditory Neuroscience Laboratory, please visit the website at http://www.communication.northwestern.edu/brainvolts/. A list of publications related to the BioMAP can be found through the link to Listening, Learning and the Brain.

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), including statements under the caption "Looking Forward," that reflect management's current expectations about Bio-logic's future results, performance, prospects and opportunities. Management has attempted to identify these forward-looking statements by using words such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "could," "should" 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 healthcare 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, Internal Revenue Service determinations and other facts affecting the realization of the anticipated tax credits and other factors detailed from time to time in Bio-logic's filings with the Securities and Exchange Commission.

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