PRESS RELEASE                                    UNILAB CORPORATION

                                                 18448 Oxnard Street
                                                 Tarzana, CA 91356
                                                 www.Unilab.com

                                                 For Further Information:
                                                 Melissa Mahoney
                                                 Phone: (818) 758-6607
                                                 e-mail: IRelations@Unilab.com


IMMEDIATE RELEASE
March 7, 2000

                    UNILAB CORPORATION ANNOUNCES 1999 RESULTS

TARZANA,  CA, March 7, 2000 - UNILAB Corporation  announced today that net sales
for the year ended December 31, 1999 were $285.2 million,  versus $217.4 million
in the  prior  year.  The  Company  reported  net  income  for the year of $20.6
million,  excluding  non-recurring  charges  and  expenses  associated  with the
recapitalization  transaction in November,  a deferred tax benefit, and a charge
associated  with a legal  settlement.  Net  income in the  prior  year was $10.7
million.
Earnings before Interest,  Taxes,  Depreciation and Amortization ("EBITDA") were
$49.7 million for full year 1999, exclusive of the non-recurring items discussed
above, or 17.4% of sales,  compared to $31.8 million, or 14.6% of sales, for the
prior year.

For the quarter ended December 31, 1999,  sales were $71.7 million,  compared to
$55.3  million  during the same period last year.  Excluding  the  non-recurring
items in 1999,  net income for the  quarter was $2.0  million,  compared to $1.1
million in the prior year period.  On the same basis,  EBITDA was $12.6 million,
or 17.6%  of  sales,  compared  to $6.4  million,  or 11.6% of sales in the same
period last year.

After  accounting  for  the  impact  of the  recapitalization  transaction,  the
deferred  tax  benefit,  and the legal  settlement,  net income for the year was
$(14.1) million,  and EBITDA was $3.0 million.  For the quarter,  net income was
$(44.0) million, and EBITDA was $(33.5) million.

"The past year was a  significant  one for  Unilab,"  said Bob Whalen,  Unilab's
President  and CEO. "The  successful  acquisition  of the BCL business,  and the
going-private  transaction with Kelso, took place while concurrently maintaining
and strengthening the company's core business."

The Company's volume for the full year was 25.2% above 1998 levels,  and pricing
increased by 4.8%. For the 4th quarter,  volume levels were 24.8% above the same
quarter  last year,  and pricing  increased by 3.8%.  "Our Meris and  Bio-Cypher
acquisitions  have clearly had a positive impact on volumes," stated Mr. Whalen.
"We are  pleased to see that our 1999  results  continue  the trends that Unilab
established over the last couple of years."

In addition,  Unilab  announced  that it has signed a definitive  Asset Purchase
Agreement  to acquire  substantially  all of the assets of  Southern  California
Clinical  Laboratories (SCCL), an independent regional laboratory  headquartered
in Pasadena,  California.  The  transaction is expected to close within the next
several weeks.

The statements in this press release that are not historical facts may be deemed
to be forward-looking  statements.  Each of the above forward-looking statements
is subject to change based on various risks and uncertainties, including without
limitation,  legislative and regulatory  developments and competitive actions in
the  marketplace  that could cause the outcome to be materially  different  from
stated.  Certain of these risks and  uncertainties  are listed in the  Company's
1998 Annual Report on Form 10-K.

Unilab  Corporation  is the  largest  provider of  clinical  laboratory  testing
services in California  through its primary  testing  facilities in Los Angeles,
San Jose and  Sacramento  and over 300 regional  service and testing  facilities
located  throughout  the  state.  Additional  information  is  available  on the
Company's website at www.unilab.com.


                              - tables to follow -


<PAGE>

<TABLE>

                               Unilab Corporation
                             Statement of Operations
                  (amounts in thousands, except per share data)

<CAPTION>

                                                         Three months ended Dec. 31,           Year ended Dec. 31,
                                                             1999            1998              1999           1998
                                                             ----            ----              ----           ----
<S>                                                       <C>             <C>             <C>            <C>
Revenue                                                    $71,667         $55,324         $285,163       $217,370
                                                           -------         -------         --------       --------
Direct Laboratory and Field Expenses:
    Salaries, Wages and Benefits                            21,250          18,097           84,476         67,742
    Supplies                                                10,879           8,086           41,532         30,671
Other Operating Expenses                                    17,189          14,190           70,443         53,594
                                                            ------          ------           ------         ------
                                                            49,318          40,373          196,451        152,007

Legal Charge                                                     -               -              600              -
Merger/Recapitalization Expenses                            25,297               -           25,297              -
Amortization and Depreciation                                2,974           1,818           10,163          7,592
Selling, General and Administrative Expenses                 9,737           8,540           39,060         33,530
                                                             -----           -----           ------         ------
    Total Operating Expenses                                87,326          50,731          271,571        193,129
                                                            ------          ------          -------        -------
Operating Income (Loss)                                   (15,659)           4,593           13,592         24,241

Interest, net                                                7,601           3,470           18,845         13,538
                                                             -----           -----           ------         ------
Income (Loss) Before Income Taxes                         (23,260)          1,123           (5,253)         10,703
    & Extraordinary Item
Tax Benefit                                                      -               -           11,904              -
                                                        ----------      ----------           ------     ----------
Income (Loss) Before Extraordinary Item                   (23,260)           1,123            6,651         10,703
Extraordinary Item - Loss on Early
    Extinguishment of Debt                                  20,773               -           20,773              -
                                                            ------      ----------           ------     ----------
Net Income (Loss)                                         (44,033)           1,123         (14,122)         10,703
                                                          --------           -----         --------         ------
Preferred Stock Dividends                                        9              32              108            131
Net Income (Loss) Available to Common
   Stockholders                                          $(44,042)          $1,091        $(14,230)        $10,572
                                                         =========          ======        =========        =======
EBITDA                                                   $(33,458)          $6,411           $2,982        $31,833
EBITDA Without Non-Recurring Charges                      $12,612           $6,411          $49,652        $31,833

</TABLE>

<PAGE>



                               Unilab Corporation
                                  Balance Sheet
                             (amounts in thousands)


                                                   December 31      December 31,
                                                      1999              1998
                                                      ----              ----

Cash and Cash Equivalents                             $12,557         $20,137

Accounts Receivable, net                               50,281          41,326

Other Current Assets                                    5,925           4,100
                                                        -----           -----
Total Current Assets                                   68,763          65,563

Fixed Assets, net                                      13,125          11,277

Deferred Tax Asset                                     16,558               -

Goodwill and Other Intangible Assets                   83,630          59,319

Other Assets                                           11,324           6,301
                                                       ------           -----
Total Assets                                         $193,400        $142,460
                                                     ========        ========

Total Current Liabilities                              35,374          22,631

Long-Term Debt, net of current portion                310,941         137,170

Other Liabilities                                       5,504           4,026

Total Shareholders' Deficit                         (158,419)        (21,367)
                                                    ---------        --------
Total Liabilities and Shareholders' Deficit          $193,400        $142,460
                                                     ========        ========