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Bio-Logic Systems Corp. Reports Strong Sales and Net Income Results for The Fiscal 2000 Third Quarter

Sales Momentum Continues, Supported by Increasing Demand for New Products And
                           Investments in Personnel

    MUNDELEIN, Ill., Jan. 6 /PRNewswire/ -- Bio-logic Systems Corp.
(Nasdaq: BLSC) today reported continued strong results for its fiscal 2000
third quarter and nine months ended November 30, 1999.  In the latest three
months, net sales increased 53 percent over last year's comparable quarter led
by steady demand for the company's new Ceegraph XL long-term
epilepsy-monitoring device and its advanced software options.  During the
quarter, Bio-logic increased its investment in process improvements as well as
sales, service, customer support and manufacturing personnel to better manage
order fulfillment and an expanding customer base.  Net income for the fiscal
2000 third quarter was substantially higher than a year ago as Bio-logic reaps
the benefits of major investments made last year in development of the
Ceegraph XL and comprehensive software and hardware upgrades.
    "We are very pleased with the successive sales growth we achieved so far
in each quarter of fiscal 2000," said Gabriel Raviv, chairman and chief
executive officer.  "The Ceegraph XL technology has given us a competitive
advantage in the marketplace, driving the sales momentum we're experiencing.
We are putting a lot of effort now into improving the manufacturing,
installation, and maintenance of this new product, and are adding production,
engineering and service support to accelerate that objective.  As a result,
cost of sales is elevated while we work through the improvement process, but
enhanced efficiencies should bring accelerated shipments and installations,
and will open the door for the aggressive cross-selling of our complete
product offering.
    "In addition to successfully attracting new accounts with our epilepsy
monitoring systems, we are expanding sales to our existing customer base by
offering an upgraded Windows platform for both our EEG and Sleep product lines
as well as additional system options.  More and more, customers are looking
for a single vendor to supply all of their needs.  As a technology and service
leader with a cost-effective, comprehensive diagnostic offering, hospitals are
choosing Bio-logic as their vendor of choice."
    Sales for the fiscal 2000 third quarter increased 53 percent to
$6.7 million compared with $4.4 million in the similar fiscal 1999 quarter.
The sales increase was supported, in part, by the continued expansion of
Bio-logic's sales network by 13 percent over last year, the increasing demand
for new products, and expanded market opportunities.  Domestic sales rose
71 percent, while international sales declined 39 percent from a year earlier
due to the continued adverse impact of the Asian economic crisis.  SG&A and
R&D expenses were 36 percent and 11 percent higher, respectively, quarter-
over-quarter as staffing levels were increased in line with expected growth.
Total operating expenses as a percent of sales, however, declined nearly
11 percent in the latest three months compared with a year ago.  Net income
was $449,849, or $0.11 per diluted share, compared with $27,544, or $0.01 per
share, a year ago.
    For the nine months, Bio-logic reported a 57 percent increase in net sales
to $19.6 million from $12.4 million last year.  Operating expenses as a
percent of sales declined nearly 15 percent.  Net income was $1.9 million, or
$0.46 per diluted share, compared with a net loss of $100,732, or $0.03 per
diluted share, for the nine months a year earlier.
    While the company's neurology products propelled sales growth in both the
quarter and nine months, its Sleep and audiology products continued to show
notable sales increases.  The audiology market is expanding, led by increasing
legislation mandating newborn hearing screening.  The company has several
products addressing this segment of the market and is capitalizing on the
legislation by offering hospitals product trials and training, and educational
seminars and materials.
    New product development is a key part of the company's growth strategy and
an important element to expanding market share.  Bio-logic is currently
developing new products and product upgrades for its audiology line,
positioning itself to respond to the expanding needs in this market.
Collaborations with leading institutions, such as the House Ear Institute in
California, offer the company pre-approved technology sources that accelerate
product development and the product approval process, allowing the company to
bring the latest diagnostic techniques to market much faster.  Bio-logic plans
to actively utilize beneficial collaborations going forward, as appropriate.

    Financial Position
    The company's cash position decreased to $5.6 million at November 30,
1999, from $6.0 million on February 28, 1999.  Long-term debt as a percent of
capitalization decreased to 7 percent, and the current ratio was 4.1 to 1.
Shareholders' equity increased to $14.6 million, or nearly 15 percent.

    Outlook
    "We are making great strides in keeping up with demand for our systems.
As one of only four competitors offering a 64/128 channel long-term epilepsy
monitoring system, our product, with its modular design, provides a cost-
effective means of upgrading systems as next-generation models are introduced.
This is an important differentiating factor to hospitals with budget
constraints that are determined to get the best product for their dollar,"
said Raviv.
    "Over the last nine months, we've been dedicated to putting the staff in
place to support the growth we are experiencing.  In the current fourth
quarter and the early part of next year, we will be working diligently to
train the new sales and service representatives and to ensure the installation
and operation of our new systems are seamless.  Of course, at the same time
we'll continue moving the company forward, developing new products and
addressing new market opportunities."

    Bio-logic Systems Corp., headquartered in Mundelein, Ill., designs,
develops, assembles and markets computer-based electrodiagnostic 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.

    Safe Harbor Statement
    Except for descriptions of historical facts, this release contains
forward-looking statements that involve known and unknown risks, which may
cause the company's actual results in the future to differ materially from
those currently anticipated.  These risks 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.

    To receive Bio-logic's latest news release and other corporate documents,
free of charge via fax, simply dial 1-800-PRO-INFO.  Use company ticker BLSC.

                   BIO-LOGIC SYSTEMS CORP. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                  UNAUDITED

                           THREE MONTHS ENDED           NINE MONTHS ENDED

                          Nov. 30,      Nov. 30,     Nov. 30,      Nov. 30,
                            1999          1998         1999          1998
    NET SALES            $6,720,744   $4,380,800   $19,589,513  $12,449,281
    COST OF SALES         2,214,163    1,357,619     6,128,978    3,949,753

    Gross Profit          4,506,581    3,023,181    13,460,535    8,499,528

    OPERATING EXPENSES:
      Selling, general
       & administrative   3,068,905    2,259,874     8,630,079    6,582,739
      Research
       & development        870,549      785,339     2,384,011    2,241,061

    Total Operating
      Expenses            3,939,454    3,045,213    11,014,090    8,823,800

    OPERATING INCOME
      (LOSS)                567,127      (22,032)    2,446,445     (324,272)

    OTHER INCOME
     (EXPENSE):
      Interest Income        58,765       69,959       178,253      198,316
      Interest expense       (5,203)      (5,468)      (17,309)
(23,657)
      Miscellaneous           4,110       (1,240)        2,665       (1,644)

    INCOME (LOSS) BEFORE
      INCOME TAXES          624,799       41,219     2,610,054     (151,257)

    PROVISION (BENEFIT)
      FOR INCOME TAXES      174,950       13,675       730,825      (50,525)

    NET INCOME (LOSS)      $449,849      $27,544    $1,879,229    $(100,732)

    EARNINGS (LOSS)
     PER SHARE:
      Basic                   $0.11        $0.01         $0.47       $(0.03)
      Diluted                 $0.11        $0.01         $0.46       $(0.03)

    BASIC SHARES
      OUTSTANDING         4,007,120    4,015,536     3,996,435    4,009,103

    DILUTED SHARES
      OUTSTANDING         4,235,239    4,050,893     4,099,125    4,009,103


                         SELECTED BALANCE SHEET DATA

                                        As of               As of
                                     November 30,        February 28,
                                         1999                1999

    Cash and marketable securities    5,581,248            5,957,112
    Current Assets                   16,291,259           13,385,871
    Total Assets                     18,984,337           16,038,207
    Current liabilities               3,941,175            2,793,361
    Long-term obligations               179,172              294,618
    Shareholders' equity             14,619,095           12,705,333


SOURCE Bio-Logic Systems Corp.




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CONTACT:
Gabriel Raviv, CEO, or Roderick G. Johnson,
President & COO, both of Bio-Logic Systems Corp., 847-949-5200;
or General Info., Leslie Hunziker, 312-640-6760, Media Info.,
Darcy Bretz, 312-266-7800, or Investor Info., Leslie Loyet,
312-640-6672, all of The Financial Relations Board