Bio-Reference Laboratories Announces Signing of Letter of Intent with General Prescription Programs to Form Medical Management Company

Business Wire, July 14, 1999

ELMWOOD PARK, NJ--(BUSINESS WIRE)--July 14, 1999--

Bio-Reference Laboratories, Inc. (Nasdaq Small Cap/BRLI), the largest independent clinical testing laboratory in the Northeastern United States, announced the signing of a letter of intent with General Prescription Programs, Inc., a prescription benefit manager ("GPP") and others, to form a new company to provide medical management and medical claims processing services to third-party payers of health related claims and benefits. The new company, which will be 80% owned and principally funded by BRLI, is expected to obtain a license to market medical management services to GPP customers representing approximately one million lives. The license will also provide the new company with access to GPP's claims information and analytical software. The proposed transaction is subject to and contingent upon completion of negotiations and preparation and execution of the required agreements.

BRLI also announced today its execution of an employment contract with Dolores Bowman to serve as vice president and director of medical management services. Ms. Bowman most recently served as Vice President of Medical Programs and Services at Sanus Health Plan Corp., a subsidiary of New York Life NYL Care Health Plans, Inc., where she was directly responsible for utilization management, claims management and Medical operations.

Dr. Marc Grodman, BRLI's chief executive officer, commented, "For some time, BRLI has been seeking ways to unlock the value in the multitude of transactions we generate. Through the analytical process of interrelating laboratory, prescription and medical claims data, we can provide critical strategies and solutions to promote population health management. This initiative demonstrates our intention of addressing a larger market than defined by laboratory testing alone. The one million lives serviced by GPP may well represent upwards of $3 billion in annual medical expenditures. It is our intent to develop tools to improve the efficiency and quality of the services for which these medical dollars are spent.

We are also pleased to announce the addition of Dolores Bowman to our executive team. Ms. Bowman has an outstanding reputation in the emerging area of population health management. Our association with Ms. Bowman further enhances our expertise in the medical management area."

Bio-Reference Laboratories, Inc. is a highly automated computer-driven clinical laboratory serving specialty markets in the New York/Tri-State metropolitan area. The Company performs highly sophisticated testing procedures in addition to high-volume routing testing in clinical chemistry, special chemistry, endocrinology, serology, diagnostic immunology, microbiology, rheumatology, parasitology, cellular immunology, radioimmunoassay, hematology, immunohematology, cytology, anatomic pathology and urinalysis.

The Company's common stock is traded on the Nasdaq Small Cap system under the symbol "BRLI."