Bio-logic Signs Three-Year Agreement for Hearing Products with Novation, the Leading Supply Chain Management Company in the Health Care Industry.

MUNDELEIN, Ill. -- Bio-logic Systems Corp. (Nasdaq:BLSC), a designer and marketer of computerized medical electro-diagnostic equipment and disposables, today reported the signing of a three-year contract with Novation, the supply services company of VHA Inc. and the University HealthSystem Consortium, for Bio-logic to serve as a sole source supplier of infant hearing diagnostic equipment and supplies, and a dual source supplier of infant screening systems and disposables. The agreement is effective May 1, 2005, and runs through April 30, 2008.

"Partnering with Novation is a natural fit for Bio-logic," commented Gabriel Raviv, chairman and chief executive officer. "Both organizations share the philosophy of providing value through competitive pricing and innovation and helping users of their products and services remain at the forefront of the evolving health care marketplace. Though Bio-logic prides itself on being the technology leader in the hearing industry, what sets us apart from the competition is our added focus on customer support and leadership in providing education on new technologies to hearing professionals. Our innovative A-C-E program, or Audiology Centers for Excellence, is bringing Bio-logic together with approximately seven leading university hearing programs, many of which are Novation members, to elevate the clinical competency and thought process for students, educators and practitioners through the power of continuing education. Bio-logic is the only supplier in the industry that offers this 'complete package' and I believe that's what made the difference in our earning this business."

"Having the full range of our infant screening and diagnostic products and disposables, such as the new HALO Ear Muffin(TM), available to the over 2,400 members represented by Novation offers a significant sales opportunity, but more importantly gives us the chance to develop deeper relationships with these members as they become more familiar with Bio-logic. We firmly believe that the best way to develop long-term customers is for them to experience the 'Bio-logic difference,'" added Roderick G. Johnson, president and chief operating officer. "We are pleased to have this opportunity, and the Bio-logic Team is committed to providing Novation members the best products and services available in the hearing market today."

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 Novation

Novation, based in Irving, TX, was established on January 1, 1998, when VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, consolidated their supply-contracting functions. The leading supply chain management organization in the health care industry, Novation represents approximately $29 billion in annual purchasing potential and $19.6 billion in annual purchases for more than 2,400 VHA and UHC members.

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) 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, the risk that Bio-logic's new technologies will not be accepted 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, the risk that Bio-logic's performance under the Novation contract is not satisfactory and the contract is terminated, Internal Revenue Service determinations and other factors affecting the realization of the anticipated tax credits. These and other factors are 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.