RadNet Reports 2007 Annual and Fourth Quarter Results

-- For the year, RadNet reports Adjusted Revenue(1) of $434.0
million and Adjusted EBITDA(2)of $85.3 million; increases of
4.3% and 9.5%, respectively over the prior year's pro forma
results

-- For the fourth quarter, RadNet reports Adjusted Revenue(1) of
$110.9 million and Adjusted EBITDA(2) of $20.4 million;
increases of 8.4% and 18.7%, respectively over the prior
year's pro forma quarter

-- RadNet reports increased volumes

-- 2007 per share loss increased to $(0.52) compared to $(0.33)
for the twelve month period ended October 31, 2006

-- RadNet issues 2008 Guidance of $470-500 million of Revenue and
$100-$115 of Adjusted EBITDA(2)
LOS ANGELES--(Business Wire)--
RadNet, Inc. (NASDAQ:RDNT), a national leader in providing
high-quality, cost-effective diagnostic imaging services through a
network of fully-owned and operated outpatient imaging centers, today
reported financial results for its fourth quarter and full year ended
December 31, 2007.

Extended Filing Period

As previously announced, RadNet utilized a 15 day extension period
to file its form 10-K in order to enable Management and its auditing
firm, Ernst & Young LLP, to complete the audit of RadNet's financial
statements for the year ended December 31, 2007.

The identification, analysis and correction of certain accounting
issues contributed to the delay in filing the 10-K. Among the
accounting issues which principally contributed to the delay, were the
following items which resulted in accrual (non-cash) adjustments made
to RadNet's financial statements for the period ended December 31,
2007, neither of which affected full-year 2007 Adjusted EBITDA(2):

-- The addition of a $1.7 million liability at December 31, 2007
related to Incurred-But-Not-Reported ("IBNR") malpractice
claims. RadNet has a claims made policy and it was determined
that RadNet was not adequately reserved for IBNR exposure.
Related to this issue, RadNet recorded a non-cash expense of
$170 thousand for the year ended December 31, 2007 for medical
malpractice, the portion of the liability associated with
2007; and

-- The addition of an $8.5 million non-cash allowance recorded
during the year to reserve for Accounts Receivable related to
dates of service December 31, 2006 and prior that are
estimated to be uncollectible. In May of 2007, RadNet
converted certain Accounts Receivable balances, including
those for which the additional reserve is being recorded, to
the Radiologix billing system and changed the personnel
responsible for collecting these accounts. Management believes
this conversion materially contributed to slower than
anticipated collections on these accounts, resulting in
Management's decision to revise its estimate of their future
collectability. After taking into account the additional
reserve, as of December 31, 2007, RadNet had Accounts
Receivable (net of allowances) of $87.3 million.

(1) Definition of Adjusted Revenue, a non-GAAP measure, is found
on the last page of this release.

(2) Definition of EBITDA, a non-GAAP measure, is found on the last
page of this release.

Annual Report

For the year ended December 31, 2007, RadNet reported Adjusted
Revenue(1) and Adjusted EBITDA(2) of $434.0 million and $85.3 million,
respectively. Adjusted Revenue(1) increased 4.3% (or $17.7 million)
and Adjusted EBITDA(2) increased 9.5% (or $7.4 million), respectively,
over the prior year's pro forma period (pro forma to reflect the
combination with Radiologix which did not occur until November 15,
2006).

For the year ended December 31, 2007, as compared to the prior
year's pro forma period, MRI volume increased 5.6%, CT volume
increased 3.5% and PET/CT volume increased 22.2%. Overall volume,
taking into account routine imaging exams, inclusive of x-ray,
ultrasound, mammography and other exams, increased 6.6% for the twelve
months of 2007 over the prior year's pro forma period.

Net Loss for the year ended December 31, 2007 was $18.1 million,
or $(0.52) per share, compared to a net loss of $6.9 million or
$(0.33) per share, reported for the fiscal year ended October 31, 2006
(based upon a weighted average number of fully diluted shares
outstanding of 34.6 million and 21.0 million in the those periods for
2007 and 2006, respectively). Affecting net income in 2007 were
certain non-cash expenses and one-time non-recurring items including:

-- $8.5 million reduction of 2007 revenue related to increasing
the allowance for Accounts Receivable from dates of service
prior to December 31, 2006;

-- $3.3 million of non-cash employee stock compensation expense
resulting from the vesting of certain options and warrants;

-- $1.9 million gain on the sale of a Joint Venture Interest;

-- $1.6 million of non-cash Deferred Financing Expense related to
the amortization of financing fees paid as part of our $405
million credit facilities drawn down in November 2006 in
connection with the Radiologix acquisition and the incremental
$25 million term loan and revolving credit facility arranged
in August 2007;

-- $1.0 million of severance paid associated with the termination
of certain employees related to achieving the previously
announced cost savings during the Radiologix integration and a
payment to an employee to settle an employment-related
dispute;

-- $0.9 million of retention payments to key Radiologix employees
per certain retention agreements entered into at the closing
of the Radiologix acquisition;

-- $0.8 million non-cash loss on the fair value of interest rate
hedges related to the Company's credit facilities;

-- $0.6 million non-cash accrual for a stock compensation related
bonus;

"We are extremely proud of all that we accomplished in 2007. Our
ability to integrate Radiologix, acquire other strategic operations,
build and improve our existing facilities and decrease operating costs
contributed to our success in overcoming the difficulties our industry
is facing in the aftermath of the Deficit Reduction Act. Our focus on
operating regional multimodality networks and the consummation of
important strategic transactions uniquely positioned us to absorb the
$16 million impact to our revenue and Adjusted EBITDA(2) from the DRA
in 2007, while the vast majority of smaller operators struggled," said
Dr. Howard Berger, President and Chief Executive Officer.

"We have great confidence in our business as we progress through
2008. We anticipate that we will benefit in 2008 from many of our
accomplishments of 2007, which have yet to be fully realized in our
financial statements. These include items that occurred at various
times throughout 2007 and subsequent to year end, such as the closing
of certain acquisitions, our investment in digital mammography and
many other initiatives."

Dr. Berger added, "When we announced the Radiologix acquisition in
July of 2007, we issued guidance for 2007 of $400 million of revenue
and $85 million of pro forma Adjusted EBITDA(2), which was pro forma
for a full year's effect of $11 million of identified cost savings we
intended to achieve throughout 2007. With full year 2007 results of
$434 million of Adjusted Revenue(1) and $85.3 million of actual
Adjusted EBITDA(2) (not yet realizing a full year's benefit of the
cost savings initiatives), we have exceeded our own targets."

Key Accomplishments: 15 Months from January 1, 2007 - Present

The accomplishments achieved by RadNet during the 15 month period
from January 2007 through present include:

-- Throughout 2007, successfully integrated the Radiologix
acquisition, achieving the targeted $11 million of corporate
cost savings by year end;

-- Throughout 2007, absorbed reimbursement cuts of approximately
$16 million caused by the Deficit Reduction Act;

-- Throughout 2007 and subsequent to year end, installed ten
PET/CT scanners and completed the full digitization of our
centers in New York and Maryland, including the conversion to
digital mammography;

-- During 2007, successfully exited our non-core markets of
Minnesota and Colorado through the sale of our imaging centers
in those areas;

-- In February 2007, successfully listed RadNet stock for trading
on the NASDAQ Global Market under RDNT;

-- In July 2007, acquired the Borg Imaging Group, a large
outpatient operator in Rochester, NY, and successfully
consolidated its operations with those of RadNet's existing
IDE operations, giving us a commanding presence in the
Rochester market;

-- In August 2007, contracted to provide certain management
services to a group of 20 imaging centers, formally known as
NYDIC Open MRI of America;

-- In August 2007 and February 2008, increased our GE credit
facilities by an aggregate $60 million of term debt and up to
$50 million of additional revolver capacity or term debt;

-- In September 2007, acquired three facilities in Victorville,
California, making RadNet the largest operator in a fast
growing market;

-- In October 2007, acquired the Liberty Pacific imaging center
in Encino, California, providing RadNet with unique
consolidation opportunities in one of its strongest markets;

-- During the third and fourth quarters of 2007, expanded four
Women's Imaging centers to accommodate greater demand in New
City, New York and in our California markets of Beverly Hills,
Orange and San Jose;

-- During the third and fourth quarters of 2007, began
construction to substantially replace three older Radiologix
centers in Pleasanton and San Jose, California and Tuckahoe,
New York; operations of replaced facilities should commence in
the second quarter of 2008;

-- During the second through fourth quarters of 2007, migrated
operations onto one company-wide back-end billing system and
general ledger accounting system;

-- During the fourth quarter of 2007, successfully restructured
and expanded two of RadNet's larger hospital joint ventures in
Maryland, which will result in increased management fees and
revenue;

-- During the fourth quarter of 2007, constructed our second
California interventional radiology center in Rancho Mirage,
California, which will commence operation during the second
quarter of 2008;

-- In February 2008, acquired Rolling Oaks Radiology Imaging
Centers in the Westlake/Thousand Oaks market of Los Angeles;
Together with the acquisition of certain centers from Insight
Health Systems (described below), RadNet will become the only
non-hospital outpatient imaging provider in this market;

-- In February 2008, announced the acquisition of six Southern
California imaging centers from Insight Health Systems, which
will provide further consolidation opportunities with the
RadNet centers in Westlake/Thousand Oaks and the San Fernando
Valley;

-- In March 2008, acquired Papastavros Imaging, a 12 center
operator in Delaware, expanding RadNet's Mid Atlantic presence
and providing it a platform for growth in a new market; and

-- In March 2008, announced the entry into Breast Disease
Management through the acquisition of Breast Oncology and
Breast Surgery practices in Southern California; The
initiative initially has four locations and is operated in
conjunction with RadNet's largest Womens Imaging center in
Orange County, California.

Fourth Quarter Report

For its fourth quarter of fiscal 2007, RadNet reported Adjusted
Revenue(1) and Adjusted EBITDA(2) of $110.9 million and $20.4 million,
respectively. Adjusted Revenue(1) increased 8.4% (or $8.6 million) and
Adjusted EBITDA(2) increased 18.7% (or $3.2 million), respectively
over the prior year's pro forma quarter (pro forma to reflect the
combination with Radiologix which did not occur until November 15,
2006). The results reflect improved volume and margin performance from
existing imaging centers as well as cost saving measures, the
combination of which helped to offset the negative reimbursement
effects of the federal Deficit Reduction Act.

For the fourth quarter of 2007, as compared to the prior year's
pro forma quarter, MRI volume increased 3.0%, CT volume increased 2.5%
and PET/CT volume increased 31.0%. Overall volume, taking into account
routine imaging exams, inclusive of x-ray, ultrasound, mammography and
other exams, increased 9.5% over the prior year's pro forma quarter.

Net Loss for the fourth quarter was $11.7 million, or $(0.33) per
share, compared to a net loss of $11.0 million or $(0.35) per share,
reported for the two month period ended December 31, 2006 (based upon
a weighted average number of fully diluted shares outstanding of 35.5
million and 31.0 million for these periods in 2007 and 2006,
respectively). Affecting net income in the fourth quarter of 2007 were
certain non-cash expenses and one-time non-recurring items including:

-- $8.5 million reduction of 2007 revenue related to increasing
the allowance for Accounts Receivable from dates of service
prior to December 31, 2006;

-- $1.9 million gain on the sale of a Joint Venture Interest;

-- $0.5 million non-cash loss on the fair value of interest rate
hedges related to the Company's credit facilities;

-- $0.4 million of non-cash employee stock compensation expense
resulting from the vesting of certain options and warrants;

-- $0.4 million of non-cash Deferred Financing Expense related to
the amortization of financing fees paid as part of our $405
million credit facilities drawn down in November 2006 in
connection with the Radiologix acquisition and the incremental
$25 million term loan and revolving credit facility arranged
in August 2007;

"We are pleased with our performance in the fourth quarter," said
Dr. Berger. "Seasonality was a larger factor on our business this
fourth quarter than in past years. The timing of the holidays during
the fourth quarter and harsh weather conditions on the east coast
effectively decreased the number of actual workdays, affecting our
procedural volume, but not impacting our costs. We expect that the
initiatives that we began in 2007 will contribute significantly to the
performance of our base business throughout 2008. Furthermore, we see
opportunities with greater frequency for consolidation and growth, as
many of the smaller players in our industry have continuing difficulty
competing effectively while absorbing the DRA cuts."

2008 Fiscal Year Guidance

For its 2008 fiscal year, RadNet announces its guidance ranges as
follows:

-0-
*T
Revenue $470 million - $500 million
Adjusted EBITDA(2) $100 million - $115 million
Capital Expenditures $15-$20 million maintenance level
(plus growth Capital Expenditure of up
to $25 million)
Cash Interest Expense $46-$52 million
*T

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not reported
in accordance with GAAP. RadNet uses both GAAP and non-GAAP metrics to
measure its financial results. The Company believes that, in addition
to GAAP metrics, these non-GAAP metrics assist RadNet in measuring its
cash-based performance. RadNet believes this information is useful to
investors and other interested parties because it removes unusual and
nonrecurring charges that occur in the affected period and provides a
basis for measuring the Company's financial condition against other
quarters. Such information should not be considered as a substitute
for any measures calculated in accordance with GAAP, and may not be
comparable to other similarly titled measures of other companies.
Non-GAAP financial measures should not be considered in isolation
from, or as a substitute for, financial information prepared in
accordance with GAAP. Reconciliation of this information to the most
comparable GAAP measures is included in this release in the tables
which follow.

About RadNet, Inc.

RadNet, Inc. is a national market leader providing high-quality,
cost-effective diagnostic imaging services through a network of 155
fully-owned and operated outpatient imaging centers. RadNet's core
markets include California, Maryland, Delaware and New York. Together
with affiliated radiologists, and inclusive of full-time and per diem
employees and technicians, RadNet has a total of approximately 4,000
employees. For more information, visit http://www.radnet.com.

Forward Looking Statements

This press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Specifically, statements concerning RadNets' ability to continue to
grow its business by generating patient referrals and contracts with
radiology practices, future acquisitions, cost savings, successful
integration of acquired operations, and receiving third-party
reimbursement for diagnostic imaging services, as well as RadNet's
financial guidance, its statements regarding increased business from
new operations, are forward-looking statements within the meaning of
the Safe Harbor. Forward-looking statements are based on management's
current, preliminary expectations and are subject to risks and
uncertainties, which may cause RadNet's actual results to differ
materially from the statements contained herein. Further information
on potential risk factors that could affect RadNet's business and its
financial results are detailed in its most recent Annual Report on
Form 10-K and Forms 10Q, as filed with the Securities and Exchange
Commission. Undue reliance should not be placed on forward-looking
statements, especially guidance on future financial performance, which
speaks only as of the date they are made. RadNet undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date they
were made, or to reflect the occurrence of unanticipated events.

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*T
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE DATA)

December 31, December 31, October 31,
2007 2006 2006
------------ ------------ -----------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 18 $ 3,221 $ 2
Accounts receivable, net 87,285 70,794 30,163
Due from affiliates - 1,427 -
Refundable income taxes 105 6,464 -
Prepaid and other current
assets 10,273 7,929 3,873
------------ ------------ -----------
Total current assets 97,681 89,835 34,038
PROPERTY AND EQUIPMENT, NET 164,097 158,542 64,566
OTHER ASSETS
Goodwill 84,395 61,607 23,099
Other intangible assets 58,908 60,484 -
Deferred financing costs, net 9,161 9,422 5,195
Investment in joint ventures 15,036 10,125 -
Deposits and other 4,342 4,751 4,738
------------ ------------ -----------
Total other assets 171,842 146,389 33,032
------------ ------------ -----------
Total assets $ 433,620 $ 394,766 $ 131,636
============ ============ ===========
LIABILITIES AND STOCKHOLDERS'
DEFICIT
CURRENT LIABILITIES
Cash disbursements in transit $ - $ 5,099 $ 612
Accounts payable and accrued
expenses 59,965 45,911 26,221
Due to affiliates 1,350 - 737
Notes payable 3,536 2,969 1,162
Current portion of deferred
rent 195 - -
Obligations under capital
leases 9,455 4,626 2,410
-------------------------------------
Total current liabilities 74,501 58,605 31,142
-------------------------------------
LONG-TERM LIABILITIES
Subordinated debentures
payable - - 16,031
Line of credit 4,222 22 12,437
Deferred rent, net of current
portion 4,394 - -
Deferred taxes 277 - -
Notes payable, net of current
portion 382,064 360,083 145,987
Obligations under capital
lease, net of current portion 22,527 11,305 3,889
Other non-current liabilities 15,259 10,493 944
------------ ------------ -----------
Total long-term
liabilities 428,743 381,903 179,288
------------ ------------ -----------
COMMITMENTS AND CONTINGENCIES
MINORITY INTERESTS 206 1,254 -
STOCKHOLDERS' DEFICIT
Common stock - $.0001 par
value, 200,000,000 shares
authorized; 35,239,558,
34,973,780 and 22,985,252
shares issued; 35,239,558,
34,061,281 and 22,072,752
shares outstanding at
December 31, 2007, 2006 and
October 31, 2006,
respectively 4 3 2
Paid-in-capital 149,631 146,056 103,203
Accumulated other
comprehensive loss (4,579) (73) -
Accumulated deficit (214,886) (192,287) (181,304)
------------ ------------ -----------
(69,830) (46,301) (78,099)
Less: Treasury stock - 912,500
shares at cost - (695) (695)
------------ ------------ -----------
Total stockholders'
deficit (69,830) (46,996) (78,794)
------------ ------------ -----------
Total liabilities and
stockholders' deficit $ 433,620 $ 394,766 $ 131,636
============ ============ ===========
The accompanying notes are an integral part of these financial
statements.
*T

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RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE DATA)

Year Ended Two Months Ended
December 31, December 31,
------------ -------------------------
2007 2006 2005
------------ ------------ ------------
(unaudited)
NET REVENUE $ 425,470 $ 57,374 $ 25,520

OPERATING EXPENSES
Operating expenses 330,550 46,033 19,149
Depreciation and
amortization 45,281 5,907 2,759
Provision for bad debts 27,467 3,907 826
Loss (gain) on sale of
equipment 72 (38) -
Severance costs 934 205 -
------------ ------------ ------------
Total operating expenses 404,304 56,014 22,734

INCOME FROM OPERATIONS 21,166 1,360 2,786

OTHER EXPENSES (INCOME)
Interest expense 44,307 5,620 2,970
Gain from sale of joint
venture interest (1,868) - -
Loss (gain) on debt
extinguishment, net - 7,212 -
Other (income) expense (29) (51) (29)
------------ ------------ ------------
Total other expense 42,410 12,781 2,941

LOSS BEFORE INCOME TAXES,
MINORITY INTERESTS AND
EARNINGS FROM MINORITY
INVESTMENTS (21,244) (11,421) (155)
Provision for income taxes (337) (20) -
Minority interest in
(income) loss of subs (600) (45) -
Equity in earnings from
joint ventures 4,050 503 -
------------ ------------ ------------
NET LOSS $ (18,131) $ (10,983) $ (155)
============ ============ ============

BASIC AND DILUTED NET LOSS PER
SHARE $ (0.52) $ (0.35) $ (0.01)

WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic and diluted 34,592,716 30,972,282 20,703,406

Fiscal Years Ended
October 31,
-------------------------
2006 2005
------------ ------------

NET REVENUE $ 161,005 $ 145,573

OPERATING EXPENSES
Operating expenses 120,342 109,012
Depreciation and amortization 16,394 17,536
Provision for bad debts 7,626 4,929
Loss (gain) on sale of equipment 373 696
Severance costs - -
------------ ------------
Total operating expenses 144,735 132,173

INCOME FROM OPERATIONS 16,270 13,400

OTHER EXPENSES (INCOME)
Interest expense 20,362 17,493
Gain from sale of joint venture interest - -
Loss (gain) on debt extinguishment, net 2,097 (515)
Other (income) expense 788 (8)
------------ ------------
Total other expense 23,247 16,970

LOSS BEFORE INCOME TAXES, MINORITY INTERESTS
AND EARNINGS FROM MINORITY INVESTMENTS (6,977) (3,570)
Provision for income taxes - -
Minority interest in (income) loss of
subs - -
Equity in earnings from joint ventures 83 -
------------ ------------
NET LOSS $ (6,894) $ (3,570)
============ ============

BASIC AND DILUTED NET LOSS PER SHARE $ (0.33) $ (0.17)

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic and diluted 21,013,957 20,603,955

The accompanying notes are an integral part of these financial
statements.
*T

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RADNET, INC.
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO Adjusted EBITDA(2)
(IN THOUSANDS)

Three Months Ended
December 31,
-----------------------------
2007 2006
-------- --------------------

RadNet RadNet Pro Forma (a)
-------- --------------------
Income from Operations (c) $(2,058) $(13,863)
Plus Depreciation and Amortization 12,213 10,745
Plus Earnings from Minority Investments 970 888
Plus Non Cash Employee Stock
Compensation (b) 429 281
Plus Loss on Sale of Equipment 72 1
Less Minority Interest in (Income) Loss
of Subs (117) (111)
-------- --------------------
Subtotal 11,509 (2,059)
Plus Severance: Elimination of Corporate
Personnel 119 205
Plus One Time Legal Settlement 120 337
Plus Merger Costs and Financing Costs - 18,665
Plus Non Cash Increase in Malpractice
IBNR Reserve 43 -
Plus Increase in Accounts Receivable
Allowance for 2006 and Prior Services 8,500 -
Plus Retention Payments to Radiologix
Employees 63 -
-------- --------------------
Adjusted EBITDA(2) $20,354 $ 17,148
======== ====================

(a) RadNet Pro Forma information is simply a summarization of our
historical data with that of Radiologix and does not purport to
represent what the actual results would have been had the merger been
completed on September 30, 2006.
(b) Includes both FAS123 compensation and restricted stock
compensation.
(c) Includes loss or gain on sale of equipment.

Twelve Months
Ended December 31,
-----------------------------
2007 2006
-------- --------------------

RadNet RadNet Pro Forma (a)
-------- --------------------
Income from Operations (c) $21,166 $ 10,733
Plus Depreciation and Amortization 45,281 41,387
Plus Earnings from Minority Investments 4,050 3,980
Plus Non Cash Employee Stock
Compensation (b) 3,312 1,808
Plus Loss on Sale of Equipment 72 374
Less Minority Interest in (Income) Loss
of Subs (600) (652)
-------- --------------------
Subtotal 73,281 57,630
Plus Severance: Elimination of Corporate
Personnel 934 205
Plus Payment for Employee Termination 95 -
Plus One Time Legal Settlement 120 337
Plus Physician Payment 250 -
Plus Nasdaq Listing Fee 120 -
Plus SAB 108 Accounting Adjustment 362 -
Plus Merger Costs - 19,714
Plus Non-Cash Accrual for Stock Comp
Related Bonus 600 -
Plus Non Cash Increase in Malpractice
IBNR Reserve 172 -
Plus Increase in Accounts Receivable
Allowance for 2006 and Prior Services 8,500 -
Plus Retention Payments to Radiologix
Employees 848 -
-------- --------------------
Adjusted EBITDA(2) $85,282 $ 77,886
======== ====================

(a) RadNet Pro Forma information is simply a summarization of our
historical data with that of Radiologix and does not purport to
represent what the actual results would have been had the merger been
completed on December 31, 2005.
(b) Includes both FAS123 compensation and restricted stock
compensation.
(c) Includes loss or gain on sale of equipment.
*T

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*T
RADNET, INC.
ADJUSTED REVENUE(1) COMPARISON
(IN THOUSANDS)

Three Months Ended
Ended December 31,
--------------------------------
2007 2006
-------- --------------------

RadNet RadNet Pro Forma (a)
-------- --------------------

Adjusted Revenue (1) $110,919 (b) $102,338
======== ====================

(a) RadNet Pro Forma information is simply a summarization of our
historical data with that of Radiologix and does not purport to
represent what the actual results would have been had the merger been
completed on September 30, 2006.
(b) Adjusted for $8.5 million non-cash adjustment to the allowance
account of Accounts Receivable, which approximates the write-off of
receivables during the year related to 2006 and earlier fiscal years.

Twelve Months
Ended December 31,
--------------------------------
2007 2006
-------- --------------------

RadNet RadNet Pro Forma (a)
-------- --------------------

Adjusted Revenue (1) $433,970 (b) $416,270
======== ====================

(a) RadNet Pro Forma information is simply a summarization of our
historical data with that of Radiologix and does not purport to
represent what the actual results would have been had the merger been
completed on December 31, 2005.
(b) Adjusted for $8.5 million non-cash adjustment to the allowance
account of Accounts Receivable, which approximates the write-off of
receivables during the year related to 2006 and earlier fiscal years.
*T

Footnote

(1) Adjusted Revenue is adjusted for $8.5 million of additional
allowance taken during the year against accounts receivables for dates
of service December 31, 2006 and prior. This non-cash charge, related
to services performed prior to December 31, 2006, resulted in RadNet
decreasing its 2007 revenue by the $8.5 million.

(2) The Company defines Adjusted EBITDA as earnings before
interest, taxes, depreciation and amortization, each from continuing
operations and adjusted for losses or gains on the disposal of
equipment, debt extinguishments and non-cash equity compensation.
Adjusted EBITDA includes equity earnings in unconsolidated operations
and subtracts minority interests in subsidiaries, and is adjusted for
non-cash or extraordinary and one-time events taken place during the
period.

Adjusted EBITDA is reconciled to its nearest comparable GAAP
financial measure. Adjusted EBITDA is a non-GAAP financial measure
used as analytical indicator by RadNet management and the healthcare
industry to assess business performance, and is a measure of leverage
capacity and ability to service debt. Adjusted EBITDA should not be
considered a measure of financial performance under GAAP, and the
items excluded from Adjusted EBITDA should not be considered in
isolation or as alternatives to net income, cash flows generated by
operating, investing or financing activities or other financial
statement data presented in the consolidated financial statements as
an indicator of financial performance or liquidity. As Adjusted EBITDA
is not a measurement determined in accordance with GAAP and is
therefore susceptible to varying methods of calculation, this metric,
as presented, may not be comparable to other similarly titled measures
of other companies.

RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
or
Integrated Corporate Relations, Inc.
John Mills, 310-954-1105
jmills@icrinc.com

Copyright Business Wire 2008