RadNet to replace all of its Maryland Analog Mammography Systems with Digital Mammography
· The upgrade program should both improve patient care and address a growing demand from patients and payors · RadNet should benefit from improved reimbursement from billing for digital mammography, cost savings and increased capacity · Investment underscores RadNet’s commitment to full digital implementation LOS ANGELES, Calif., October 24, 2007 – 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 that it has begun an upgrade plan to replace all of its analog mammography systems in Maryland with digital mammography, which will entail deployment of over 30 digital systems during the next six month period at an aggregate cost of between $10 million and $12 million. Currently, RadNet performs approximately 225,000 mammograms per year in its Maryland market. RadNet has identified women’s imaging, and in particular breast imaging, as an underserved market which is experiencing growing demand from patients and payors. As part of the digital mammography program, RadNet will be creating heightened awareness through targeted marketing efforts aimed at educating women on proper screening for breast cancer and related women’s diseases. Currently, there is a backlog of women awaiting mammograms nationwide and millions of others who should be seeking annual or bi-annual screening for breast cancer, osteoporosis and other related health problems which commonly afflict women. “Maryland is a core market for RadNet and one that we are targeting for growth and investment. As part of our commitment to growing our Maryland presence, we are committed to providing the best possible medical care to our patients and referring physician community.” said Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet, Inc. “We have identified digital mammography as a technology that both improves medical care and provides us with significant operating enhancements. Digital technology enables us to image more patients, allowing us to more effectively service the growing demand and existing backlogs for mammography. Further substantiating the significant financial commitment we are making to digital mammography is a higher per scan reimbursement.” added Dr. Berger. “Our commitment to digital mammography also highlights the benefits of our multi-modality approach, which positions us as a full-spectrum provider of women’s health imaging services. The growth of our mammography practice has historically been supported by related procedures including breast MRI, Ultrasound, PET/CT, Bone Density and biopsies. Lastly, this investment underscores our commitment to full digital implementation, which creates efficiencies and cost benefits from the elimination of film, film-handling and storage.” About RadNet, Inc. RadNet, Inc., is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of fully owned and operated outpatient imaging centers. For its fiscal quarter ended June 30, 2007, RadNet and its subsidiaries performed 671,717 diagnostic imaging procedures. RadNet operates in six states, including California, Maryland, New York, Florida, Kansas and Colorado. RadNet offers the full spectrum of diagnostic imaging exams, including PET/CT, MRI, CT, Nuclear Medicine, Mammography, Ultrasound and X-ray, as well as numerous other procedures. 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 RadNet’s ability to grow its contract management business, as well as RadNet's financial guidance, its statements regarding cost savings, its statements regarding increased business from new equipment or 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. CONTACTS: RadNet, Inc.Mark Stolper, 310-445-2800Executive Vice President and Chief Financial Officer Integrated Corporate Relations, Inc. John Mills, 310-954-1105 jmills@icrinc.com
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