1. Portfolio Managers: Qi He Nan Liang Su Chen Presented April 4, 2012

2. Introduction Macro Review Relevant Stock MKT Review Co. Business Financial Analysis Financial Projection Recommendation

4. Bio-Reference Laboratories, Inc. provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases primarily in the greater New York metropolitan area. GICS Map: 35102015 – Health Care Services Source: finance. yahoo.com PEG Ratio 0.95

6. Source: IBIS – 62151 Diagnostic & Medical Laboratories in the US Industry Report, Feb 2012 by Sophia Snyder

7. The industry revenue growth is projected to be around 2.7% due to the economy’s slow recovery. Source: IBIS – 62151 Diagnostic & Medical Laboratories in the US Industry Report, Feb 2012 by Sophia Snyder

8. Key External Drivers for this industry: Federal funding for Medicare and Medicaid Number of people with private health insurance Total health expenditure Number of adults aged 50 and older Technological changes Source: IBIS – 62151 Diagnostic & Medical Laboratories in the US Industry Report, Feb 2012 by Sophia Snyder

9.  Medicare  Medicaid  Heavily regulated industry

10.  Federal and state laws applicable to billing and claims payment;  Federal and state laboratory anti- mark- up laws;  Federal and state anti- kickback laws;  Federal and state false claims laws;  Federal and state self- referral and financial inducement laws, including the federal physician anti- self- referral law, or the Stark Law;  Coverage and reimbursement levels by Medicare and other governmental payors and private insurers;  Federal and state laws governing laboratory licensing and testing, including CLIA;  Federal and state laws governing the development, use and distribution of diagnostic medical tests known as laboratory developed tests or "LDTs";  HIPAA, along with the revisions to HIPPA as a result of the HITECH Act, and analogous state laws;  Federal, state and foreign regulation of privacy, security, electronic transactions and identity theft;  Federal, state and local laws governing the handling, transportation and disposal of medical and hazardous waste;  Occupational Safety and Health Administration rules and regulations; Source: BRLI 2011 10-K

11. Billing Different Coverage 2 Service Fee Schedule: Anatomic Pathology Clinical Lab Missing or Incorrect Billing Info Different Reimbursement Source: BRLI 2011 10-K

12. Source: IBIS – 62151 Diagnostic & Medical Laboratories in the US Industry Report, Feb 2012 by Sophia Snyder

14. Quest Diagnostics Incorporated (DGX) Laboratory Corporation of America Holdings (LH) Bioclinica, Inc. (BIOC) NeoGenomics, Inc. (NGNM) Psychemedics Corporation (PMD) EDTOX Scientific, Inc. Orchid Cellmark Inc. Genoptix, Inc. Response Genetics, Inc. Source: BRLI 2011 10-K

15. Source: Capital IQ

16. Source: BRLI 2011 10-K

18. Source: finance. yahoo.com

20.  BRLI is a clinical testing laboratory offering testing, information and related services to physician offices, clinics, hospitals, employers and governmental units.  Fourth largest full-service laboratory in the United States and the largest independent regional laboratory in the Northeastern market. Source: BRLI 2011 10-K

21. Laboratory Corporation of America (LH) Quest Diagnostics (DGX) New York Metropolitan Area Source: BRLI 2011 10-K

22. Source: BRLI 2011 Conference Call

23.  In 2006, BRLI acquired GeneDx, a diagnostic genetic testing laboratory providing services to national and international customers. In 2008, BRLI were the first commercial laboratory in the world to offer NextGen (high speed computerized sequencing) to analyze multi- gene conditions. These innovations have significantly grown GeneDx's business.  On March 2, 2010, BRLI completed the acquisition of Lenetix Medical Screening Laboratory, Inc., a clinical testing laboratory located in Mineola, New York. The laboratory performs both clinical laboratory diagnostic testing and genetic testing.  On August 5, 2011, BRLI acquired The Genetics Center, Inc., a New York corporation engaged in the clinical laboratory business with its principal place of business in Smithtown, New York Source: BRLI 2011 10-K

24. 40% Routine Test Measure various health parameters, such as the functions of the heart, kidney, liver, thyroid and other organs. Blood Cell Counts, Cholesterol Levels, HIV- Related Tests, Pregnancy, Substance Abuse, Urinalysis 60% Esoteric Test Require sophisticated equipment and materials, highly skilled personnel and professional attention. These tests ordered less frequently and priced higher. Endocrinology, Genetics, Immunology, Microbiology, Molecular Diagnostics, Oncology, Serology, Toxicology Source: BRLI 2011 10-K

25. Source: BRLI 2011 Conference Call

27. BRLI: Esoteric Testing has Fueled Growth Source: BRLI 2011 Conference Call

28. Innovative Technology More Personalized Service Faster Responses to Medical Consultation Sales & Marketing M&A Source: BRLI 2011 10-K

29. Healthcare Reform Law:  Including programs to extend medical benefits to millions of individuals who currently lack insurance coverage, coupled with measures to cut Medicare spending for most healthcare services, including clinical laboratories. Patient Protection and Affordable Care Act Healthcare and Education Reconciliation Act Source: BRLI 2011 10-K

30. Congress has periodically considered imposing a 20 percent coinsurance on laboratory services. Under the Medicare framework, the national limitation amount for clinical laboratory services had been reduced in a number of instances over the past several years to a present level equal to 74% of the national median of laboratory charges Source: BRLI 2011 10-K

31. Billing Different Coverage 2 Service Fee Schedule: Anatomic Pathology Clinical Lab Missing or Incorrect Billing Info Different Reimbursement Source: BRLI 2011 10-K

35. BRLI has demonstrated 20% CAGR over the past seventeen years with an actual increase of 26% for FY10 over FY09. Source: BRLI 2011 Conference Call

36. Source: BRLI 2011 10-K

39. Target price: $ 19.80

41. Current Stock Price $23.97 DCF $23.87 Multiple $19.80 Recommendation: Watch list