Third Quarter Shows Marked Improvement Over Two Earlier Quarters of Fiscal
                                     2001

    MUNDELEIN, Ill., Jan. 16 /PRNewswire/ -- Bio-logic Systems Corp.
(Nasdaq: BLSC) today reported that sales and earnings for its third quarter
ended November 30, 2000, showed a marked improvement over the two earlier
quarters of the 'Company's fiscal year 2001, but continued to trail the
year-ago quarter, part of Bio-logic's record 2000 fiscal year.
    New products for the Company's line of hearing screening devices that
debuted late in the second quarter were well received in the third quarter,
with momentum continuing to gain with each month, according to
Roderick G. Johnson, president.  Foreign sales of hearing screening equipment,
particularly in Japan, almost tripled over last year's level and now
international sales represent nearly 20 percent of total Company sales.
Epilepsy and sleep monitoring equipment sales lag last year's pace, Johnson
said, primarily due to restraint by hospitals in committing capital to new
purchases after heavy Y2K investments in 1999 and increased competitive
activity.  Supplies, service and other non-equipment revenues continue to grow
at a strong pace, reaching 38 percent year to date.
    For the three months ended November 30, 2000, sales declined only
1.5 percent from last year's third quarter, to $6.6 million from $6.7 million.
The gross profit margin in the current year's third quarter increased to
68.9 percent from 67.1 percent in the like quarter a year ago due to favorable
changes in the sales mix. Operating income in the third quarter more than
overcame the accumulated deficits reported for the first two quarters of the
current year.  Higher selling, general and administrative expenses, and
research and development spending to stock the company's pipeline of new
products, contributed to the 12.9 percent decline in net income to $391,912,
or $0.09 per share, from $449,849, or $0.11 per share, last year.
    For the latest nine months, revenues were $17.8 million, down 9.1 percent
from last year's record pace of $19.6 million.  Net income was $222,650, or
$.05 per share, for the current period versus $1.9 million, or $.46 per
diluted share, for the first nine months of fiscal 2000.
    Johnson said that market growth in newborn-hearing screening remains
strong and that referrals (of up to five percent of all screened babies) to
audiologists for more advanced diagnosis is building demand for Bio-logic's
more sophisticated equipment.  Newly launched products such as the ABaer Ear
Muff kit and software give Bio-logic a comprehensive and cost-effective
solution -- in terms of speed and investment -- for hospitals' screening and
diagnostic programs in the nursery and neo-natal ICUs, according to Johnson.
He also said neurology products, especially for long-term epilepsy monitoring,
EEG, and sleep monitoring equipment continue to advance in terms of product
features and performance.  He cited the recently announced FDA 510(k)
clearances and availability of Ceegraph Netlink for epilepsy monitoring, and
EEG and sleep diagnostic recordings, which among other features, allows
extended distances between the patient and the monitoring system without
signal degradation.  Johnson noted that expenditures this year to accelerate
the development of product offerings are equal to 15 percent of revenues
compared with 12 percent for fiscal 2000.
    "Our objective for the fourth quarter is to match last year's same period;
however, due to the uncertainty of hospital budgets and the potential adverse
impact on our epilepsy and sleep monitoring product sales, we are only
cautiously optimistic about meeting that goal.  But we are encouraged for the
coming year by strong international sales efforts that will focus on signing
new distributors for our hearing products in key countries and supporting the
existing network, as well as investments to expand sales and marketing in
targeted states that have legislated screening for infant hearing," said
Johnson.  It is estimated that approximately 50 percent of newborns are
currently screened in the U.S.
    The company's balance sheet is strong with working capital of
$12.5 million.  Cash and cash equivalents are $5.3 million.  Long-term debt is
a nominal $13,993, and book value now stands at $3.70 per share, exceeding the
current share price.

    Bio-logic Systems Corp., headquartered in Mundelein, IL, 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 audio-logical 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 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.

    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
                      CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                           Three months ended          Nine months ended
                              November 30,                November 30,
                            2000        1999          2000          1999

    NET SALES           $6,622,632   $6,720,744   $17,806,031   $19,589,513
    COST OF SALES        2,061,774    2,214,163     5,865,341     6,128,978

        Gross profit     4,560,858    4,506,581    11,940,690    13,460,535

    OPERATING
     EXPENSES:
      Selling,
       general and
       administrative    3,163,571    3,068,905     9,194,321     8,630,079
      Research and
       development         930,405      870,549     2,660,457     2,384,011

        Total
         operating
         expenses        4,093,976    3,939,454    11,854,778    11,014,090

    OPERATING INCOME       466,882      567,127        85,912     2,446,445

    OTHER INCOME:
      Interest
       income               85,772       58,765       258,592       178,253
      Interest
       expense              (4,193)      (5,203)      (23,023)      (17,309)
      Miscellaneous         (4,139)       4,110       (12,246)        2,665

    INCOME BEFORE
     INCOME TAXES          544,322      624,799       309,235     2,610,054

    PROVISION FOR
     INCOME TAXES          152,410      174,950        86,585       730,825

    NET INCOME            $391,912     $449,849      $222,650    $1,879,229

    EARNINGS PER
     SHARE:
      Basic                  $0.09        $0.11         $0.05         $0.47
      Diluted                $0.09        $0.11         $0.05         $0.46

    AVERAGE SHARES
     OUTSTANDING:
      Basic              4,146,696    4,007,120     4,129,649     3,996,435
      Diluted            4,237,523    4,235,239     4,278,705     4,099,125


                         SELECTED BALANCE SHEET DATA

                                                 As of            As of
                                             November 30,      February 29,
                                                 2000              2000

    Cash and cash equivalents                $5,293,725        $4,959,902
    Current assets                           16,557,663        16,242,693
    Total assets                             19,684,477        19,168,147
    Current liabilities                       4,095,194         3,812,111
    Long-term obligations                        13,993           139,670
    Shareholders' equity                     15,399,490        15,040,567

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