Net Income up 68 Percent on 21 Percent Revenue Gain

    MUNDELEIN, Ill., May 12 /PRNewswire/ -- Bio-logic Systems Corp.
(Nasdaq: BLSC), a designer and marketer of computerized medical
electrodiagnostic equipment, today reported double-digit revenue growth for
its fourth quarter and fiscal year ended February 28, 1998.  Results were
driven by the strong performance of existing product lines and the benefits of
a more seasoned sales force.  Initial contributions from the market
introduction of Bio-logic's AuDX technology, and four distribution alliances
completed during the year also support the company's revenue growth.
    For fiscal 1998, total revenue rose 21 percent to $18.0 million, compared
with $14.9 million a year earlier.  Net income was $1.1 million, or $0.28 per
share, on 4,117,334 shares outstanding, versus $683,845, or $0.17 per share,
on 4,140,216 shares outstanding last year.  Fiscal 1998 net income benefited
from the short-term impact of the prior year's sales staff restructuring, and
economies of scale, based on the company's higher sales, which kept unit
production costs at a highly efficient level.
    Total revenue for the fiscal 1998 fourth quarter was $4.7 million compared
with $4.1 million in the similar fiscal 1997 quarter.  Net income for the
fourth quarter was $354,339, or $0.09 per share, on 4,151,299 shares
outstanding, compared with $323,836, or $0.08 per share, on 3,989,284 shares
outstanding a year ago.
    "Our favorable fiscal 1998 performance represents the continued strength
of our broad and innovative product lines," said Dr. Gabriel Raviv, president
and chief executive officer.  "Our specialized electrodiagnostic products for
audiology, neurology and sleep disorders generate high levels of demand from
hospitals and physician specialists.  Ongoing research and development efforts
allow us to regularly introduce enhanced, more flexible product variations,
and new features to improve patient outcome, increase diagnostic efficiency
and support the changing healthcare environment.  In addition, we are reaching
more customers today than ever before due to our recently awarded distribution
agreements with Premier Health, one of the nation's largest healthcare
alliances, and University HealthSystem Consortium Services Corporation, an
alliance of more than 80 academic health centers.
    While we are continuing to expand our sales force, we benefited last year
from the increased average experience level of our sales staff.  We expect to
realize further benefits in the coming year as sales representatives gain
additional experience and our training efforts continue.

    AuDX Market Development Progressing
    Bio-logic's newest product, the AuDX System, was launched in April 1997
and market development efforts are underway to penetrate the private practice
and general health sectors -- a $300 million market.
    "While we are encouraged by our initial progress in developing the market
for AuDX, gaining broad acceptance of a new screening method requires
successfully overcoming a number of challenges," Dr. Raviv stated.  "The
complex process of changing physicians' routine examination to include hearing
screening in infants and toddlers; and generating awareness of the simplicity,
low cost and effectiveness of our product is resulting in a longer than
expected initial selling cycle.
    "The company's market development strategy is beginning to pay off,
however," Dr. Raviv continued.  "Agreements with four major distributors were
completed during the year and several reorders for AuDX have already been
placed.  The company has partnered with Henry Schein, Inc., one of the largest
direct marketers of healthcare products, to sell AuDX through its widely
distributed catalog -- circulation 100,000.  Additionally, Bio-logic has
teamed up with School Health Corporation, a leading national supplier of
student health screening equipment, to introduce AuDX to the school market and
the more than 10,000 school nurses nationwide.  School Health reaches
approximately 90,000 customers through catalogs and direct sales.
    "Passed and pending legislation in 26 (8 passed and 18 pending) states for
mandatory infant hearing screening is also expected to favorably impact demand
for AuDX.  As more states come on board,  Bio-logic, the first-to-market and
only manufacturer to date with a hand-held infant hearing screening device,
expects sales of AuDX to significantly increase."

    Asian Crisis Impacts International Revenue
    "The problems in the Far East continue to impact our international sales.
As a percent of total revenue, international sales decreased to 22 percent for
fiscal 1998 versus 24 percent in fiscal 1997.  Yet despite the Asian monetary
crisis, we reported a 9 percent gain in revenue from international sales
year-over-year.  However, the outlook for the next few quarters remains
uncertain," said Raviv.  For the year, international revenue was $3.9 million
compared with $3.6 last year.  International revenue for the recent fourth
quarter was $1.2 million, up 34 percent from $0.9 million for last year's
comparable quarter.

    Financial Position Remains Strong
    The company's cash and marketable securities increased to $5.1 million at
February 28, 1998.  Long-term debt was nine percent of capitalization, and the
current ratio was 4.9 to 1.  Shareholders' equity increased to $12.4 million
from $11.2 million at February 28, 1997.
    Raviv also announced that the company has decided to extend the expiration
date of its outstanding warrants by one year, to May 31, 1999.
    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; risks associated with international operations
including monetary crisis; regulatory, competitive, and contractual risks; the
effects of economic conditions; any delays or additional costs associated with
the introduction of the AuDX product; 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.
    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, psychiatric and sensory disorders, psychological and
learning disorders, brain disorders and tumors.

                   BIO-LOGIC SYSTEMS CORP. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
            Periods Ended February 28, 1998 and February 28, 1997

                             For the Year Ended         Three Months Ended
                            1998         1997         1998           1997

    NET SALES          $18,018,689   $14,856,955   $4,714,178    $4,116,058
    COST OF SALES        5,703,652     5,140,195    1,445,172     1,432,369

    Gross profit        12,315,037     9,716,760    3,269,006     2,683,689
    OPERATING EXPENSES:
     Selling, general, and
      administrative     8,347,149     7,031,332    2,154,122     1,793,819
     Research and
      development        2,416,774     1,873,716      606,814       481,785

       Total operating
        expenses        10,763,923     8,905,048    2,760,936     2,275,604

    OPERATING INCOME     1,551,114       811,712      508,070       408,085

    OTHER INCOME (EXPENSE):
     Interest income       225,223       223,591       68,852        56,572
     Interest expense      (51,718)      (52,727)     (19,419)      (12,526)
     Miscellaneous            (633)          652       (3,177)       (1,870)

    TOTAL OTHER INCOME     172,872       171,516       46,256        42,176

    INCOME BEFORE
     INCOME TAXES        1,723,986       983,228      554,326       450,261

    PROVISION FOR
     INCOME TAXES          575,550       299,383      199,987       126,425

    NET INCOME          $1,148,436      $683,845      354,339       323,836

    NET INCOME PER SHARE:
      Diluted                $0.28         $0.17        $0.09         $0.08

      Diluted Shares
       Outstanding       4,117,334     4,140,216    4,151,299     3,989,284


                                    SELECTED BALANCE SHEET DATA

                                Feb. 28,                 Feb. 28,
                                  1998                     1997
    Cash and marketable
     securities                $5,124,467              $3,926,981
    Current assets             12,882,143               9,468,763
    Total assets               15,801,237              13,924,402
    Current liabilities         2,645,722               1,823,723
    Long-term obligations         427,174                 562,879
    Shareholders' equity       12,434,793              11,199,402

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