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</tr> <tr> <td><a href="coe.htm" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Image13','','images/but_on_10.gif',1)"><img src="images/but_10.gif" name="Image13" width="191" height="24" border="0"></a></td> </tr> <tr> <td><a href="hipaa.htm" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Image12','','images/but_on_09.gif',1)"> </a><a href="coe.htm" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Image13','','images/but_on_10.gif',1)"> </a><a href="commcharter.htm" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Image14','','images/but_nominate_on.gif',1)"> <img src="images/but_nominate.gif" name="Image14" width="191" height="25" border="0"></a></td> </tr> <tr> <td colspan="2"><img src="images/menu_bot.jpg" width="270" height="21"></td> </tr> </table> </td> <td width="98%" valign="top"> <br /> <p style="text-align: justify"> <font color="#9999FF" size="+2">FISCAL YEAR 2010 EARNINGS RELEASE</font><br /> <br /> <font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Dear Shareholders, <br /> <br /> <br /> Over the past year, I have had the opportunity to meet with many analysts and investors, either during one-on-one sessions at investor conferences or during investor visits to our laboratory facilities in New Jersey, Massachusetts or Maryland. During these visits, there has been one overriding question. Why is BioReference growing? The subject of our persistent, continued growth has been the basis of a great deal of the support we have seen and has garnered much admiration from many; it has also been a source of criticism from detractors and nay-sayers. Certainly for fiscal year 2010 and the fourth quarter 2010, we once again demonstrated strong growth. For the fiscal year we showed 26% growth and for the fourth quarter almost 24% growth. These strong revenue growths were fueled by substantial increases in patient count, which was up 21% and 17%, respectively for the same two periods. Let me try to provide some color. <br /> <br /> Why do we grow? The simplest explanation is that we have always grown. Fiscal Year 2010 makes the 17th consecutive year of at least 20% compound annual growth. There has never been, to our knowledge, a Company in our industry that has sustained this level of expansion over such an extended period of ime. This sustained growth has been virtually all organic and it is part of the fiber and essence of the Company. <br /> <br /> Why do we grow? We re built that way. There is a slide that we have used in our presentations for over a decade. It is called  Our Multiple Market Strategy . We are a combination of a growing regional laboratory and multiple specialty national laboratories all sharing the same infrastructure. This is how we are conceived. If we competed in a single market, we would not show the growth that we have demonstrated, but as a multi-market laboratory, we can achieve our goals. <br /> <br /> Why do we grow? We pay for growth. Sales and Marketing expense for FY2010 remained over 9% of total revenue and, in fact, it was actually about 50 basis points higher than in recent years. Our margins are not the same as other laboratories. We spend money on service. We spend money on informatics. We spend money on science. Our Sales and Marketing group is specialized. Not all physicians are the same. Not all of our sales representatives are the same. They are all trained for one specific expertise that allows them to succeed and their managers and support staff allow them to remain focused on very specific targets. <br /> <br /> Why do we grow? We grow with better science. We look at every market segment as an opportunity to differentiate ourselves in that particular marketplace. Most every new initiative we undertake goes through four basic steps. We identify the appropriate and relevant clinical questions that we believe physicians see as worthwhile. We determine ways to collect the specimen that is easy, reliable and differentiating. We then use our expertise and comfort with all technologies to find the technology platform that will give us an advantage in that marketplace. Finally, we create a report back to the Physician and/or patient that is clinically useful and relevant. <br /> <br /> This year, more than ever, technological innovation has paved the way for our growth. Working in conjunction with leading gynecological and infectious disease experts we identified a critical and often underappreciated need to address the costly epidemic of sexually transmitted infectious diseases, which most often go undiagnosed, leading to additional health care costs in dollars and suffering down the line. <br /> <br /> Our Women s Health Program was then built on an innovative technology platform that allows detection of multiple pathogens and allows the physician to have a simple, easy, minimally invasive way to improve his or her diagnosis in clinically appropriate cases. However, technology is not enough, education is critical and we invest in people and materials to provide our physician clients with important information about sexually transmitted infections. We have convened a scientific advisory board, which guides all programs we conduct and reviews all materials presented. While the STI program is only used in a low percentage of the cases seen by the physician, its very existence and its non-invasive methodology have provided us with a differentiating opportunity to grow our Women s Health market share. When given an option, both in the Northeast and around the country, physicians choose to utilize GenPath Women s Health. <br /> <br /> As a further example, GeneDx, our specialized genetic laboratory, has grown six-fold since it was acquired in 2006, providing both diagnoses for rare disease disorders as well as one-step shopping for all cardiac genetics with service, education and support that we believe is unmatched in the marketplace. We were the first commercial laboratory in the world to provide multi-gene analysis based on the next generation of genetic sequencers and we will utilize this expertise for other clinical conditions where multi gene testing is advantageous. <br /> <br /> Given the growth in these areas, it is certainly understandable that our percent of esoteric business grew from 53% to 57% year over year. Over that same period of time, our average price per accession increased about $4, or 6%. Future investments in better science and commercializing cutting edge medical advances are ongoing and will continue for the foreseeable future. <br /> <br /> Why do we grow? We provide a better service. As I mentioned earlier, when given the opportunity, physicians choose BioReference; they choose GenPath, our oncology laboratory; they choose GenPath Women s Health; they choose GeneDx. We cannot categorize our growth in any one area because we have seen expansion in all elements of our business. In New York State, which represents a highly competitive marketplace, we are still awaiting licensure of many of our STI tests as well as our array for leukemia/lymphoma. Nonetheless, we grew just shy of 20% in New York- a tribute to the value-added service and support model we have created as a Clinical laboratory provider in this regional market. <br /> <br /> We have grown as I have often said over this past year, as a result of the opportunities that we have both created and leveraged. We have strived to build a Company that will excel for a long time to come. I believe our performance in this past quarter and this past fiscal year has both validated and demonstrated that approach. <br /> <br /> Gross Margin for Q4FY10 was about 50% slightly down from the same quarter the prior year. This is reflective of the higher cost of goods for our more esoteric testing, but is also indicative of our investment into new testing programs and platforms and, given our unmatched expertise and reputation in genetic testing, our preparation to enter the prenatal testing market. This is a complex, sophisticated services market that requires additional investment, expertise and infrastructure in order to provide a superior program. We are preparing to introduce our program during this coming fiscal year. <br /> <br /> Near the end of FY2010, we announced an agreement with Massachusetts General Hospital to do tumor genotyping for solid tumors. We believe that diagnoses of solid tumors have long needed a greater holistic approach than what is currently offered and we found that our colleagues at Mass General share our belief. This program will be introduced later this year and our hope is that it will enable a personalized medical approach to solid tumor diagnoses and treatment. <br /> <br /> These initiatives require technology, supplies and people, skilled people many of whom we have brought on board and who are committed to making BioReference the special place it has become. As I have noted before, BioReference, as a whole, employs over one hundred MD and PhD level individuals a testament to the resources we have developed. <br /> <br /> We will face many challenges this year--introduction of pre natal testing services as a joint effort of GeneDx and GenPath Women s Health, new initiatives in Solid Tumor Genotyping and Personalized Diagnostics, continued introduction of new testing programs and new testing platforms. Perhaps our greatest challenge will be satisfying expectations given the increasing size of the denominator we will be facing. Nevertheless, with all taken into consideration, we expect to increase net revenues by at least 15% and net income by at least 15% for the coming year. <br /> <br /> In December 2010, 1400 people gathered for the BioReference Holiday Party. Most companies don t do this, either because of the expense or other perceived liabilities but we think it is important. Of those who attended, there were over 1000 employees, approaching 40% of our workforce. People were recognized for their longevity with the Company; the longest lines were for the photographers who take pictures of employees with their co-workers who then keep them at their work stations year round. <br /> <br /> Why do we grow? We grow because of them. Every new employee is an unmistakable link in a chain that for a quarter of a century has produced people with vision and determination, passion and persistence that has allowed BioReference to survive and excel. It is a great culture to be part of; it is a tough culture to compete against. <br /> <br /> Why do we grow? More than any other laboratory we are physician centric. I am a clinician and the reason we can work with outstanding physicians around the country is that we are them. This is the most stable management team in the entire history of the clinical laboratory business. In the past few months, all of our leading competitors in the oncology market have either been acquired or intend to be. <br /> <br /> In the pre-natal, genetic testing market, two laboratories, one well established the other a pioneer in new technologies have both been recently acquired. GeneDx enjoys a wonderful reputation among geneticists nationwide and is still run by the same geneticists who founded the company after leaving the NIH in 2001. <br /> <br /> Why do we grow? I believe stability, shared vision and a sense of purpose and family plays a large role. <br /> <br /> We have had 17 years of 20% compound annual growth. Our growth has been organic, in multiple markets, in multiple geographic areas. We are not built on singular transactions or short term thinking. Our past and our track record speak for themselves. <br /> <br /> We understand that analysis of most companies is rather stark, in black and white. We accept that reality but it will be hard to appreciate what has been created and exists at BioReference without understanding the colors that define us. We have been doing it for awhile and expect to be at it for some time to come. <br /> <br /> <br /> </font> <br /> <table width="100%" cellpadding="0" cellspacing="0" border="0"> <tr> <td style="width: 50%;" valign="top"> <font face="Verdana, Arial, Helvetica, sans-serif" size="2">January 4, 2011<br /> Elmwood Park, New Jersey</font> </td> <td style="width: 50%;" valign="top"> <font face="Verdana, Arial, Helvetica, sans-serif" size="2">Sincerely,<br /> <br /> Marc Grodman, M.D.<br /> Chairman of the Board<br /> President and Chief Executive Officer<br /> <br /> <br /> <br /> </font> </td> </tr> </table> </p> </td> </tr> </table> <!-- FOOTER TABLE--> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td><!-- #BeginLibraryItem "/Library/footer.lbi" --> <div align="center"> <font face="Verdana, Arial, Helvetica, sans-serif" size="1"><a href="Library/lab.htm"></a> </font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><font size="1"></font> </font> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td height="6"> <hr width="98%"> </td> </tr> <tr align="center"> <td><font face="Verdana, Arial, Helvetica, sans-serif" size="1"> <a href="index.htm" target="_self"> Home</a> | <a href="lablist.aspx" target="_self">Laboratory</a> | <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=84759&amp;p=irol-governance"> Corporate Profile</a> | <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=84759&amp;p=irol-news"> Press Releases</a> | <a href="http://www.psimedica.com" target="_blank">PSIMedica</a> | <a href="http://www.careevolve.com">Careevolve</a> | <a href="http://finance.yahoo.com/q?s=BRLI" target="_blank"> Stock Quote</a> | <a href="email.htm" target="_self">Email Directory</a> | <a href="letter.htm" target="_self"> Letter from the Pres</a> | <a href="hr.htm" target="_self">Human Resources</a></font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><br> <font size="1">©2001 - Bio-Reference Laboratories, Inc. - Elmwood Park, New Jersey - All Rights Reserved</font></font></td> </tr> </table> <font face="Verdana, Arial, Helvetica, sans-serif" size="2"><font size="1"></font></font> </div> <!-- #EndLibraryItem --></td> </tr> </table> <map name="Map"> <area shape="RECT" coords="272,40,398,57" href="http://www.microsoft.com/downloads/details.aspx?FamilyID=b446ae53-3759-40cf-80d5-cde4bbe07999&amp;displaylang=en" target="_blank"> <area shape="RECT" coords="403,13,521,58" href="http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=84759&eventID=2383564 " target="_blank"> </map> <map name="Map2"> <area shape="RECT" coords="272,40,398,57" href="http://www.microsoft.com/downloads/details.aspx?FamilyID=b446ae53-3759-40cf-80d5-cde4bbe07999&amp;displaylang=en" target="_blank"> <area shape="RECT" coords="403,13,521,58" href="http://cc.talkpoint.com/ubsx001/092109a_ke/?entity=44_53TVITW" target="_blank"> </map> <map name="Map3"> <area shape="RECT" coords="272,40,398,57" href="http://www.microsoft.com/downloads/details.aspx?FamilyID=b446ae53-3759-40cf-80d5-cde4bbe07999&amp;displaylang=en" target="_blank"> <area shape="RECT" coords="403,13,521,58" href="http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=84759&eventID=1921633" target="_blank"> </map> </body> </html>