Reduced Sales, Higher Costs Produce Loss

    MUNDELEIN, Ill., July 6 /PRNewswire/ -- Bio-logic Systems Corp.
(Nasdaq: BLSC) today reported that results for the first fiscal quarter ended
May 31, 2000, while in line with expectations, were below the comparable
period last year.  The maker of computer-assisted medical diagnostic equipment
had previously indicated that certain factors would adversely impact the
March-May period.
    Roderick G. Johnson, president, stated that a lack of urgency by
purchasing managers in making capital expenditure decisions now that Y2K
concerns have passed negatively impacted first quarter sales.  Sales
comparisons were also adversely impacted by two unusually large shipments
which occurred in last year's first quarter, one domestic and one
international, totaling approximately $1.5 million.  He also noted that a
temporary shortage of electronic components contributed to delays in shipments
of the company's recently launched ABaer hearing systems for newborns, but
that deliveries have now begun.  "Demand for hearing products continues to
grow," according to Johnson, "with more states, most recently Florida,
mandating newborn hearing screening."
    Gross profit was lower due to reduced volume as well as to a less
favorable sales mix.  Higher costs also contributed to the reduced earnings.
Operating expenses increased primarily due to higher research and development
expenditures and increased staffing in the areas of sales, customer support
and field applications.
    For the quarter, the company incurred a net loss of $187,675, or $.05 per
share, compared to a profit of $705,629, or $.18 per share a year ago.  Sales
declined 15.3 percent to $5,319,377 from $6,278,284.
    Bio-logic's financial position remains strong with over $12 million of
working capital, including $5.2 million in cash and cash equivalents.
    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 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 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 CORPORATION

                      CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                                                     Three Months Ended
                                                             May 31,
                                                      2000            1999

    NET SALES                                     $5,319,377     $6,278,284
    COST OF SALES                                  1,861,246      1,996,924

    Gross Profit                                   3,458,131      4,281,360

    OPERATING EXPENSES:
    Selling, general & administrative              2,953,361      2,668,385
    Research & development                           846,466        683,520

    Total Operating Expenses                       3,799,827      3,351,905

    OPERATING INCOME (LOSS)                        (341,696)        929,455

    OTHER INCOME (EXPENSE):
    Interest income                                   86,769         58,527
    Interest expense                                  (3,031)        (7,424)
    Miscellaneous                                     (2,717)          (529)

    INCOME (LOSS) BEFORE INCOME TAXES               (260,675)       980,029

    PROVISION (BENEFIT) FOR INCOME TAXES             (73,000)       274,400

    NET INCOME (LOSS)                              $(187,675)      $705,629

    EARNINGS PER SHARE:
    Basic and Diluted                                  $(0.05)        $0.18

    WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic                                          4,118,044      3,995,036
    Diluted                                        4,340,113      4,025,180

                         SELECTED BALANCE SHEET DATA
                                                    May 31,     February 29,
                                                     2000            2000

    Cash and marketable securities                $5,200,079     $4,959,902
    Current assets                                15,072,985     16,242,693
    Total assets                                  18,207,168     19,168,147
    Current liabilities                            3,054,681      3,812,111
    Long-term obligations                             97,054        139,670
    Shareholders' equity                          14,879,634     15,040,567

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