Bio-logic Systems Signs Three-year Purchasing Agreement With Broadlane.

Business Editors/Health & Medical Writers

MUNDELEIN, Ill. & SAN FRANCISCO--(BUSINESS WIRE)--Sept. 4, 2002

Bio-logic to Provide Newborn Hearing Screening and Diagnostic

Equipment to Broadlane Healthcare Provider Customers

Bio-logic Systems Corp. (Nasdaq: BLSC), a designer and marketer of computerized medical electro-diagnostic equipment and disposables, and Broadlane Inc., a leading provider of total cost management services to the healthcare industry, today announced the signing of a three-year agreement. Under the agreement, Bio-logic will supply both infant hearing screening equipment and diagnostic hearing systems.

The agreement provides Broadlane customers access to Bio-logic's full line of hearing diagnostic products, including the Navigator(R) Pro, Bio-logic's two-channel diagnostic ABR system, the Scout(R) Sport diagnostic OAE system and the soon to be released M.A.S.T.E.R(TM) (Multiple Auditory STEady State Response), which utilizes Auditory Steady State Response (ASSR) technology to characterize an infant's hearing loss and helps the audiologist to set hearing aid parameters.

Broadlane customers will also have access to Bio-logic's full range of hearing screening products, including the ABaer(TM) newborn hearing screener, the AuDX(R) handheld screener and the newest member of the ABaer product family, the truly portable PDA-based hearing screener, the ABaer CUB(TM). Bio-logic's complete line of supplies, including the new Ear Muffin(TM) which is designed for use with the ABaer and ABaer CUB as well as with a competitor's screening system, is also available under the agreement.

Roderick G. Johnson, president and chief operating officer, commented, "This agreement with Broadlane continues to expand our reach into the marketplace and further establishes Bio-logic as an industry leader in the hearing field. That Bio-logic continues to be the vendor of choice among leading healthcare providers is testament to the quality, ease of use and cost effectiveness of our products, factors we continue to emphasize as we add to our growing product range."

Bio-logic was awarded the contract as part of Broadlane's intensive contract selection process, which focuses on delivering high quality, cost effective products and services to Broadlane's healthcare provider customers. To ensure that it selects the best products and vendors for its customers, Broadlane solicits input and direction from key end users, such as physicians and nurses, as well as hospital business leaders.

Suppliers find particular value in contracting with Broadlane because of the company's strategy of involving clinical end users from the beginning of the contracting process. That means that buyers ultimately have a much deeper commitment to the contracts than is typical.

About Broadlane

Broadlane delivers total cost management to the healthcare industry, allowing hospitals to reduce operational costs while maintaining or enhancing patient care and clinician satisfaction. Broadlane services include contracting, clinical services, technology and data management and outsourcing services. Among the companies that focus on cost management within the healthcare supply chain, only Broadlane offers this total cost management approach.

Through an extensive suite of services, Broadlane delivers supply cost management services to the healthcare industry. Those services include contract coverage, clinical strategies and data management. Among the companies that focus on managing costs within the healthcare supply chain, only Broadlane offers this full array of services. Broadlane customers include leading healthcare providers such as Kaiser Permanente, Tenet Healthcare Corporation, Universal Health Services, Continuum Health Partners, The Health Alliance of Greater Cincinnati, Kindred Healthcare, Community Health Systems, U.S. Oncology, Alliance Imaging Inc. and others. Broadlane counts among its customers more than 450 acute care hospitals and more than 1,400 sub-acute care facilities. Broadlane has offices in San Francisco and Oakland, Calif.; Cincinnati; Dallas and New York City. For more information visit www.broadlane.com.

About Bio-logic

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. 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.

Except for descriptions of historical facts, this release contains forward-looking statements that involve known and unknown risks, which may cause Bio-logic's actual results in the future to differ materially from those currently anticipated. These results include, among others, fluctuations in sales and operating results; the company's ability to recruit and train the necessary number of sales representatives and installation technicians; risks associated with international operations including monetary crisis; regulatory, competitive and contractual risks; the effects of economic conditions; and the availability of capital to finance planned growth, as well as other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.