RadNet Acquires Liberty Pacific Imaging Center in Encino, California

• Acquisition further consolidates the Encino/Tarzana, California market, where RadNet has three other facilities

• RadNet will add a 64 slice PET/CT unit to Liberty Pacific to provide additional needed PET/CT capacity in the Encino/Tarzana market and enable advanced cardiovascular imaging

• Acquisition will allow RadNet to move a 3T MRI unit from one of its existing Encino/Tarzana centers to its Rockland County New York market, where it has need for 3T MRI capacity

LOS ANGELES, California, October 9, 2007 – RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of owned and operated outpatient imaging centers, today reported that it acquired Liberty Pacific Imaging Center in Encino, California for $2.8 million.

The center operates a successful MRI practice utilizing a 3T MRI unit, the strongest magnet strength commercially available at this time.  The center was founded in 2003, and has since been a fixture in the Encino/Tarzana market of the San Fernando Valley in Los Angeles.

The acquisition allows RadNet to consolidate a portion of its Encino/Tarzana MRI volume onto the existing Liberty Pacific scanner.  This consolidation will make available RadNet’s existing 3T MRI unit in that market, which will be moved to RadNet’s Squadron facility in Rockland County, New York.

Additionally, RadNet will add a 64-slice PET/CT unit to the Liberty Pacific center, which will create increased capacity for its expanding PET/CT business in this market.  Furthermore, the installation of the 64-slice PET/CT technology will enable RadNet to effectively perform certain specialized cardiovascular imaging, which has gained increased clinical and third-party payor support in recent months.

“This acquisition is notable in several respects.” said Dr. Howard Berger, President and Chief Executive Officer of RadNet.  “First, the acquisition illustrates our commitment to driving consolidation in our existing markets.  We have a very strong competitive position in the Tarzana/Encino marketplace and we are prepared to continue to commit the resources necessary to further our growth and success in this area of the San Fernando Valley of Los Angeles.  We are applying this strategy of growth, geographic penetration and consolidation in all our core markets.”

“Second, the acquisition demonstrates our expertise in equipment asset management.  We continually look at deploying equipment to locations that maximize its utilization.  In the case of this acquisition, we can consolidate volume from an existing 3T MRI scanner onto the newly acquired 3T scanner, thereby freeing a machine to be moved to an entirely different market that requires increased MRI scanning capacity.  The end result is that we expect to increase overall volumes for RadNet through effective equipment utilization.  As we continue to grow our scale, we expect to further capitalize on equipment management optimization.” added Dr. Berger.

“Lastly, the installation of the 64-slice PET/CT scanner into the Liberty Pacific location illustrates both our commitment to growing our PET/CT business as well as our deployment of cutting-edge technologies which continually drive new applications within imaging.  The addition of the 64-slice PET/CT scanner at Liberty Pacific together with another 64-slice PET/CT scanner currently being added to our Orange County, California market, enable us to drive new cardiovascular applications which we believe, over time, will replace more expensive invasive procedures which traditionally have only been available in hospitals.”

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 principally operates in four states, including California, Maryland, New York and Florida.  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 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.

RadNet, Inc.
Mark Stolper
Executive Vice President and Chief Financial Officer
310-445-2800

Integrated Corporate Relations, Inc.
John Mills
310-954-1105
jmills@icrinc.com