Bio-logic Reports First Quarter Fiscal 2006 Results

Bio-logic Systems Corp. (Nasdaq:BLSC), a designer and
marketer of computerized medical electrodiagnostic equipment and
disposables, today reported financial results for the first quarter
ended May 31, 2005.

   Highlights of First Quarter and Subsequent Events

   --  Sales increased 11 percent to $7.0 million from $6.3 million
        in the first quarter of fiscal 2005, led by continued strong
        demand for sleep systems and hearing screening supplies.

   --  Operating income for the quarter increased 95 percent against
        the same period last year.

   --  Diluted earnings per share of $0.04 compared to $0.02 in the
        prior year's first quarter.

   --  Donald Williams joins management team as vice president of
        North American hearing.

   --  Counsel has been informed by plaintiff's attorney that
        Bio-logic will be dismissed from the Forsythe v. Legacy Health
        System, et al. lawsuit.

   First Quarter Results

   Net sales for the first quarter ended May 31, 2005 increased 11.3
percent to $7.0 million, compared with $6.3 million for the same
quarter of the prior fiscal year. Gross profit margin decreased to
66.1 percent from 67.1 percent for the same period of the prior fiscal
year, primarily due to sales mix changes. Total selling, general and
administrative expense for the quarter remained essentially flat at
$3.1 million. Research and development expense increased $259,000 to
$1.3 million, compared to $1.0 million for the same period of the
prior fiscal year, primarily due to increased compensation expense in
the U.S. and overseas product development groups.
   Operating income for the quarter increased 94.9 percent to
$265,000, compared to $136,000 for the same quarter of last fiscal
year. Net income for the quarter was $262,000, or $0.04 per diluted
share, compared to $114,000, or $0.02 per diluted share, in the first
quarter of fiscal 2005.
   The company had $14.3 million in cash and cash equivalents at May
31, 2005, a decrease of $580,000 from the February 28, 2005 fiscal
year end, due primarily to the payment of costs incurred in fiscal
2005 associated with an unsuccessful neurology acquisition bid.
   Commenting on the quarter's results, Roderick G. Johnson,
president and chief operating officer, stated, "With a significant
increase in operating income and earnings per share double that of the
same period last year, we were pleased with our overall performance in
the first quarter of fiscal 2006. Our 11 percent sales increase was
led by strong demand for sleep systems, particularly our Sleepscan
VISION(TM) product line, as we continued to benefit from the
heightened interest in sleep apnea monitoring and our own focus on
this area. We also experienced significant growth in sales of our
hearing screening disposables, led by the growing acceptance of our
HALO Ear Muffin(TM) used for the screening of newborns. These gains
were partially offset by declines in sales of hearing screening and
diagnostic systems."

   Looking Forward

   "On the hearing side," Johnson continued, "following the launch of
our HALO Ear Muffin last year, we invested considerable time into
converting competitors' accounts to the new HALO product. This
project, coupled with a vacancy in the position of vice president of
North American hearing since January 2005, resulted in our not being
able to dedicate sufficient time to promoting our core hearing system
products. With the addition of Don Williams to our management team, we
are again focusing our efforts on accelerating the growth of our
screening and diagnostic systems.
   "In the neurology/sleep area, we are working diligently to meet
our goal of shipping our new Netlink Traveler(R) during the third
quarter of fiscal 2006. This product, which can be used for both EEG
and sleep diagnostics, is loaded with features, weighs only 13 ounces
and can fit in the palm of a hand. We believe that these features will
provide a distinct advantage for the Netlink Traveler over current
ambulatory units on the market, and we anticipate that it will be an
important driver of sales and profit growth in the future," Johnson
concluded.

   About Bio-logic

   Bio-logic Systems Corp., headquartered in Mundelein, IL, designs,
develops, assembles and markets computer-based electrodiagnostic
systems and related disposables for use by hospitals, clinics, school
districts, 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.

   Cautionary Note Regarding Forward-Looking Statements

   This release contains forward-looking statements (as such term is
defined in Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934), including statements under
the caption "Looking Forward," that reflect management's current
expectations about Bio-logic's future results, performance, prospects
and opportunities. Management has attempted to identify these
forward-looking statements by using words such as "may," "will,"
"expects," "anticipates," "believes," "intends," "estimates," "could,"
"should" or similar expressions, but these words are not the exclusive
way of identifying these statements. These forward-looking statements
are based on information currently available to management and are
subject to a number of risks, uncertainties and other factors that
could cause Bio-logic's actual results, performance, prospects or
opportunities to differ materially from those expressed in, or implied
by, these forward-looking statements. These risks, uncertainties and
other factors include general economic and business conditions,
turnover in Bio-logic's sales force, lack of acceptance of new
technology by clinicians and other healthcare professionals, the
results of research and development efforts, Bio-logic's ability to
successfully identify, complete and integrate acquisitions and other
risks and expenses related to an acquisition strategy, technological
changes, competition, potential changes in regulation by the FDA,
costs relating to manufacturing of products, the timing of customer
orders, the ability of certain suppliers to meet requirements,
Internal Revenue Service determinations and other factors affecting
the realization of the anticipated tax credits, and other factors
detailed from time to time in Bio-logic's filings with the Securities
and Exchange Commission.

   You should not place undue reliance on any forward-looking
statements. Except as expressly required by the federal securities
laws, Bio-logic undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other reason
after the date of this release.

   Financial Table Follows...
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               Bio-logic Systems Corp. and Subsidiaries
                 Consolidated Statement of Operations
                               Unaudited
           In Thousands, Except for Share and Per Share Data


                                              Three Months Ended
                                                    May 31,
                                        ------------------------------
                                            2005            2004
                                        --------------  --------------

Net Sales                                      $6,959          $6,251

Cost of Sales                                   2,361           2,059
                                        --------------  --------------
    Gross profit                                4,598           4,192
                                        --------------  --------------

Operating Expenses:
    Selling, general & administrative           3,066           3,048
    Research & development                      1,267           1,008
                                        --------------  --------------
      Total operating expenses                  4,333           4,056
                                        --------------  --------------

Operating Income                                  265             136

Other Income                                       90              24
                                        --------------  --------------

Income Before Income Taxes                        355             160

Provision For Income Taxes                         93              46

                                        --------------  --------------
Net Income                                       $262            $114
                                        ==============  ==============

Retained Earnings, Beginning of Period         17,326          15,444

                                        --------------  --------------
Retained Earnings, End of Period              $17,588         $15,558
                                        ==============  ==============

Earnings Per Share:

    Basic                                       $0.04           $0.02
                                        ==============  ==============

    Diluted                                     $0.04           $0.02
                                        ==============  ==============


Basic Shares Outstanding                    6,604,070       6,384,227

Diluted Shares Outstanding                  7,278,669       6,828,465




               Bio-logic Systems Corp. and Subsidiaries
                      Consolidated Balance Sheet
                             In Thousands


                                            May 31,
                                             2005        February 28,
                                          (Unaudited)       2005
                                        --------------  --------------

ASSETS

Current Assets
    Cash and cash equivalents                 $14,286         $14,866
    Accounts receivable, net                    5,961           6,361
    Inventories, net                            2,663           2,251
    Prepaid expenses                              474             244
    Deferred income taxes                       1,719           1,688
                                        --------------  --------------
      Total current assets                     25,103          25,410

Property, Plant and Equipment, Net              2,408           2,432
Intangible Assets, Net                          1,938           1,897
Other Assets                                      121             128
Other Receivables                                 108             340

                                        --------------  --------------
Total Assets                                  $29,678         $30,207
                                        ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
    Accounts payable                           $1,127          $1,949
    Accrued salaries and payroll taxes          1,774           1,476
    Accrued interest and other expenses         1,357           1,551
    Accrued income taxes                          133             318
    Deferred revenue                            1,165           1,242
                                        --------------  --------------
      Total current liabilities                 5,556           6,536

Long Term Liabilities
    Deferred income taxes                         904             877
    Long term liabilities                          33              33

                                        --------------  --------------
Total liabilities                               6,493           7,446
                                        --------------  --------------

Commitments                                         -               -

Stockholders' Equity
    Common stock                                   66              66
    Additional paid-in capital                  5,531           5,369
    Retained earnings                          17,588          17,326
                                        --------------  --------------

Total stockholders' equity                     23,185          22,761

                                        --------------  --------------
Total Liabilities and Stockholders'
 Equity                                       $29,678         $30,207
                                        ==============  ==============
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