RadNet Assumes the Management of 20 Imaging Centers and Announces RadNet Managed Imaging Services, Inc.

• RadNet assumes the management of a chain of 20 imaging centers recently foreclosed upon by a lender

• RadNet Managed Imaging Services, Inc. (“RMIS”), a wholly owned RadNet subsidiary, will provide management and operational services to these imaging centers

• As a potential new growth area, RadNet, through RMIS, will make available its management services to other operators, lenders and equipment manufacturers

LOS ANGELES, Calif., August 31, 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 entered into an agreement with a lender who had just foreclosed upon a chain of 20 imaging centers to assume the management of those imaging centers.  RadNet’s subsidiary, RadNet Managed Imaging Services, Inc. (“RMIS”), will provide management and operational services to those centers and will make available similar business services to other imaging center operators in the future.

RMIS has entered into an agreement to provide administrative and management services to a national chain of 20 imaging centers formally known as Nydic Open MRI of America.  The chain of MRI centers operates in 11 states and produces net revenue of approximately $30 million per annum.  RadNet has not purchased these centers.  Instead, it will provide services through RMIS in return for management fees.  The services which RMIS will provide include billing and collection, transcription, medical coding, equipment management, medical supplies purchasing, acquisition and sale advisory work and overall strategic management.

As remuneration for RMIS’ services to the 20 imaging centers, RMIS will receive a monthly management fee and a percentage of the centers’ net revenue.  RMIS is eligible for additional fees with respect to certain performance initiatives.

"Since the onset of the Deficit Reduction Act, we have been approached by lenders, equipment manufacturers, equipment vendor financing arms and other operators to acquire their underperforming centers.  Many of these opportunities have been outside of our core markets, and had not fit within our disciplined acquisition and operational strategy of geographic concentration,” said Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet, Inc.  “However, with RadNet Managed Imaging Services, we are now positioned to provide our experience, management talent and substantial infrastructure to help these parties improve and optimize their imaging assets.  RMIS allows RadNet to benefit from selling valuable business services to operators in situations where acquiring the operations does not fit with our strategy.”

Management services that RMIS will provide include billing and collecting and/or revenue cycle management, transcription, medical coding, site-level operational assistance, equipment asset management, acquisition and sale advisory and supplies purchasing.  RMIS will directly provide these services, and from time-to-time, utilize third-party industry relationships under its oversight to assist it in providing some of these services.

“As the largest fixed-site operator of imaging centers in the country, we believe that we have created one of the lowest cost structures in our industry.  Over our 25+ years of experience in operating imaging centers, we have gained a wealth of experience in effectively managing imaging centers.  We have built a scalable infrastructure with deep management capabilities which we plan to leverage, along with our strong industry relationships, to assist our RMIS clients.  We intend to draw on all of our resources to substantially decrease the cost structures of our clients in the hopes of providing them better financial returns.  We envision many of our clients to be lenders who have troubled portfolio companies, equipment manufacturers and their financing arms who have leased equipment to underperforming centers and other operators who simply recognize that RMIS can help them improve their financial situations.  At the same time, our business services subsidiary should provide incremental high-margin revenue to RadNet and represents what we believe to be a significant growth opportunity.”

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 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