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January 20, 2005

Bio-logic Signs Exclusive Five-Year License Agreement with House Ear Institute To Develop and Commercialize Innovative Hearing Test

From: Business Wire (press release), CA - Jan 20, 2005

MUNDELEIN, Ill.--(BUSINESS WIRE)--Jan. 20, 2005--Bio-logic Systems Corp. (Nasdaq:BLSC), a designer and marketer of computerized medical electro-diagnostic equipment and disposables, today announced the signing of an exclusive five-year license agreement with the House Ear Institute (HEI) to develop and commercialize a product for hearing assessment based on proprietary technology developed by House Ear scientists. The HINT (Hearing In Noise Test) is used to evaluate the functional hearing capabilities of individuals in hearing-critical jobs such as law enforcement and emergency assistance, as well as hearing aid users and cochlear implant users. Additionally, foreign-language modules of the HINT in 11 languages allow for international testing and data collection worldwide.

"Previous success and Bio-logic's reputation as a technology leader in our industry has once again led us to partner with the House Ear Institute on this new project to further advance their innovative HINT and SAINT, or Source Azimuth Identification in Noise Test, technologies in the marketplace," said Gabriel Raviv, chairman and chief executive officer, Bio-logic Systems Corp. "Previous collaborations have resulted in our highly successful ABaer(R) and Stacked ABR(TM), and also in our newest product, CHAMP(TM), which is used in the detection of Meniere's disease."

The HINT requires patients to recognize and repeat short sentences. The subject's sentence recognition reception threshold is obtained under four headphone or loudspeaker test conditions that sample a range of binaural directional hearing ability: speech in quiet or with noise coming from different directions. Noise is presented at a fixed level of 65 decibels (dB), and the level of speech is adaptively varied depending on the response of the subject. The SAINT is also administered either with headphones or loudspeakers. The subject is required to identify the location of sounds presented in quiet or with noise that originate from different positions around the subject. The HINT and SAINT can be administered in a few minutes to characterize the subject's functional hearing abilities.

"The original versions of the HINT and SAINT have been used successfully by fire and law enforcement departments in the U.S. and Canada. We anticipate that our partnership with Bio-logic will help us extend the use of our foreign language modules of HINT and SAINT in international markets for wider-reaching benefits," said Sig Soli, Ph.D., vice president of technology transfer, HEI.

This new project represents Bio-logic's initial entry into the behavioral auditory market, which is a significant opportunity for the company and the hearing industry in the future. With heightened noise levels found in much of our environment today, this unique testing technique, which utilizes a combination of functional hearing measures both in quiet and in noise, is predictive of real-world functional hearing ability. It is particularly important that children in a classroom setting are accurately assessed so that appropriate remedial steps can be taken at an early age to maximize their learning experience. In addition, there are numerous applications where adults also can benefit from this technology in their everyday lives.

"As the industry leader in providing education on new technologies, Bio-logic can effectively bring greater awareness of this breakthrough assessment tool to hearing professionals throughout the world. Our unique A.C.E, or Audiology Centers for Excellence, program, a partnership currently with nine top university hearing programs, will provide an ideal platform for educating the marketplace on the benefits of this new technology," concluded Raviv.

About Bio-logic

Bio-logic Systems Corp., headquartered in Mundelein, IL, designs, develops, assembles and markets computer-based electro-diagnostic 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.

About the House Ear Institute (HEI)

The House Ear Institute (HEI) is a private, non-profit 501(c)(3) organization dedicated to advancing hearing science through research and education to improve quality of life. Established in 1946 by Howard P. House, M.D., as the Los Angeles Foundation of Otology, and later renamed for its founder, the House Ear Institute has been engaged in the scientific exploration of the auditory system from the ear canal to the cortex of the brain for more than 55 years. HEI scientists continue to explore the developing ear and ear diseases at the cell and molecular level, as well as the complex ear-brain interaction. They are also working to improve hearing aids and auditory implants, diagnostics, clinical treatments and intervention methods. For information on the House Ear Institute, please call (213) 483-4431 or visit the Website at

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, 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 facts 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.

Gabriel Raviv, 847-949-5200
Roderick G. Johnson, 847-949-5200
House Ear Institute
Sig Soli, Ph.D., 213-353-7085
Christa S. Nuber (Media), 213-273-8027
Dresner Corporate Services
John A. Kroen, (Investor), 312-726-3600
Kyra Kyles (Media), 312-726-3600

© Business Wire 2005