*  Adjusting for a non-cash charge from prior fiscal years,
     RadNet reports quarterly Revenue of $134.9 million and
     Adjusted EBITDA(1)of $27.0 million (Revenue of $133.4 million
     and EBITDA of $25.5 million prior to adjusting for the charge)
  *  Overall procedure volumes increased 4.9% over the prior year's
     same quarter
  *  Per share loss, adjusting for the non-cash charge, was $(0.01)
     per share compared to $0.0 per share for the three month period
     ended September 30, 2008 (Per share loss was $(0.05) for the
     third quarter of 2009 prior to adjusting for the charge)

LOS ANGELES, Nov. 9, 2009 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2009.

Three Month Report

For the three months ended September 30, 2009, RadNet reported Revenue and Adjusted EBITDA(1) of $133.4 million and $25.5 million, respectively. The results included a $1.5 million non-cash charge for increasing the contractual allowance on Accounts Receivable from services provided in 2008 and prior fiscal years. Adjusting for this $1.5 million addition to the contractual allowance which lowered Revenue and Adjusted EBITDA(1) in the quarter by $1.5 million, Revenue would have been $134.9 million, an increase of 3.1% (or $4.0 million) over the prior year's same quarter and Adjusted EBITDA(1) would have been $27.0 million, a decrease of 4.0% (or $1.1 million) over the prior year's same quarter.

Additionally, the quarter reflects decreased Revenue and Adjusted EBITDA(1) as a result of the completion of RadNet's contract with twenty facilities that it managed, but did not own. This contract, which expired during the second quarter of 2009, contributed to the results of the third quarter of 2008, but did not contribute to the results of the third quarter of 2009.

For the third quarter of 2009, as compared to the prior year's same quarter, MRI volume increased 6.8%, CT volume increased 5.8% and PET/CT volume increased 4.3%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.9% over the prior year's quarter.

On a same-center basis, including only those centers which were part of RadNet for both the third quarters of 2009 and 2008, MRI volume increased 5.4%, CT volume increased 4.0% and PET/CT volume increased 4.3%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.2% over the prior year's same quarter.

Net Loss for the third quarter of 2009 was $1.7 million, or $(0.05) per share, compared to Net Income of $138,000 or $0.0 per share, reported for the three month period ended September 30, 2008 (based upon a weighted average number of shares outstanding of 36.1 million and 37.0 million for these periods in 2009 and 2008, respectively). Adjusting for the $1.5 million increase to the contractual allowance which lowered Net Income in the quarter by $1.5 million, Net Loss for the third quarter of 2009 would have been $0.2 million, or $(0.01) per share. Affecting Net Loss in the third quarter of 2009 were certain non-cash expenses or non-recurring items including:

  *  $1.5 million non-cash charge to increase our allowance reserve
     for uncollectible accounts receivable;
  *  $1.8 million non-cash amortization expense with respect to
     interest rate swaps related to the Company's credit
     facilities;
  *  $670,000 of Deferred Financing Expense related to the
     amortization of financing fees paid as part of the Company's
     $405 million credit facilities drawn down in November 2006 in
     connection with the Radiologix acquisition and the incremental
     term loans and revolving credit facility arranged in August
     2007 and February 2008; and
  *  $713,000 of non-cash employee stock compensation expense
     resulting from the vesting of certain options and warrants.

"We are encouraged by our increased volumes and revenue for the third quarter of 2009 when compared to the third quarter of 2008, despite a very challenging economic environment," said Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet. "Our profitability suffered during the quarter from a $1.5 million non-cash reserve we recorded against the collectability of receivables from prior fiscal years and the termination of our RadNet Imaging Management Services management contract. But for these two issues, we would have had both increasing EBITDA and Net Income when compared to the third quarter of last year."

"Our strong cash flow during the quarter enabled us to repay the $1.4 million outstanding balance on our revolving credit facility in addition to repaying $6.0 million of term debt, capital leases and other notes. Even after such repayments, we had $1.2 million of cash on our balance sheet as of the end of the quarter," added Dr. Berger.

Dr. Berger noted, "The final rule regarding Medicare pricing for 2010 as released by the Centers for Medicare and Medicaid Services (CMS) on October 30th will result in a smaller than anticipated reduction in our 2010 Medicare reimbursement, which is considerably more favorable to us than that which CMS originally proposed in July of this year. We anticipate being able to fully mitigate the reimbursement reduction through several cost savings initiatives which we had already planned to implement in 2010."

"We continue to see opportunities for consolidation. The uncertainty of healthcare reform, the continuing tight credit markets and the lower Medicare rates for 2010 will further apply pressure to the smaller, less capitalized operators in our industry. We continue to believe that we will benefit from the types of consolidation opportunities on which we have been capitalizing in recent quarters" added Dr. Berger.

 2009 Fiscal Year Guidance
 -------------------------

 RadNet is updating its guidance ranges as follows:


                Previous Guidance Range       Updated Guidance Range
              ---------------------------   ---------------------------
 Revenue      $515 million - $545 million   $515 million - $535 million
 Adjusted 
  EBITDA(1)   $105 million - $115 million   $105 million - $110 million
 Capital 
  Expenditures $30 million -  $35 million    $38 million -  $40 million
 Cash 
  Interest 
  Expense      $41 million -  $45 million    $41 million -  $45 million
 Free Cash 
  Flow         
  Generation
  (a)          $25 million -  $35 million    $20 million -  $30 million
 End of Year
  Net Debt    
  Balance(b)  $438 million - $448 million   $445 million - $450 million

  a) Defined by the Company as Adjusted EBITDA(1) less total
     capital expenditures and cash interest paid
  b) Total Debt net of Cash.

Nine Month Report

For the nine months ended September 30, 2009, RadNet reported Revenue and Adjusted EBITDA(1) of $392.6 million and $78.9 million, respectively. Adjusting for the $1.5 million of additional contractual allowance we recorded in the third quarter of 2009 which lowered Revenue and Adjusted EBITDA(1) by $1.5 million, Revenue would have been $394.1 million, an increase of 6.1% (or $22.7 million) over the prior year's same nine months and Adjusted EBITDA(1) would have been $80.4 million, an increase of 5.9% (or $4.5 million) over the prior year's same nine months.

For the nine months of 2009, as compared to the prior year's same nine months, MRI volume increased 9.9%, CT volume increased 7.5% and PET/CT volume increased 5.1%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 6.2% over the prior year's nine months.

Net Loss for the nine months of 2009 was $2.9 million, or $(0.08) per share, compared to a net loss of $7.5 million or $(0.21) per share, reported for the nine month period ended September 30, 2008 (based upon a weighted average number of shares outstanding of 36.0 million and 35.7 million for these periods in 2009 and 2008, respectively). Adjusting for the $1.5 million increase to the contractual allowance which lowered Net Income in the nine month period by $1.5 million, Net Loss for the nine months of 2009 would have been $1.4 million, or $(0.04) per share. Affecting Net Loss in the nine months of 2009 were certain non-cash expenses or non-recurring items including:

  *  $1.5 million non-cash charge to increase our allowance
     reserve for uncollectible accounts receivable;
  *  $4.8 million non-cash amortization expense with respect to
     interest rate swaps related to the Company's credit facilities;
  *  $2.0 million of Deferred Financing Expense related to the
     amortization of financing fees paid as part of the Company's
     $405 million credit facilities drawn down in November 2006 in
     connection with the Radiologix acquisition and the incremental
     term loans and revolving credit facility arranged in August
     2007 and February 2008;
  *  $2.9 million of non-cash employee stock compensation expense
     resulting from the vesting of certain options and warrants;
  *  $1.4 million bargain purchase gain on the acquisition of
     acquired centers in New Jersey; and
  *  $1.0 million loss related to the resolution of legal disputes.

Third Quarter 2009 Earnings Conference Call

RadNet will host a conference call to discuss its third quarter 2009 results on Monday, November 9th, 2009 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Investors are invited to listen to RadNet's conference call by dialing 877-548-7901. International callers can dial 719-325-4896. There will also be simultaneous and archived webcasts available at http://www.radnet.com under the "Investors" menu section and "News Releases" sub-menu of the website. An archived replay of the call will also be available until November 16th and can be accessed by dialing 888-203-1112 from the U.S., or 719-457-0820 for international callers, and using the passcode 6413789.

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 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.