RadNet and Barnabas Health Announce the Operational Commencement of their Diagnostic Imaging Joint Venture in New Jersey

FOR IMMEDIATE RELEASE

RadNet and Barnabas Health Announce the Operational Commencement of their Diagnostic Imaging Joint Venture in New Jersey

• RadNet will sell its imaging center in West Orange, NJ to Barnabas Health; Joint Venture will manage center after completion of the transaction

• New center under construction in Cedar Knolls, NJ will be the first facility to be owned by Joint Venture

LOS ANGELES, California, August 6, 2012 – RadNet, Inc. (NASDAQ: RDNT) and Barnabas Health today announced the operational commencement of their previously announced multi-faceted Joint Venture in New Jersey, the sale of  RadNet’s West Orange, NJ imaging center to Barnabas Health and the establishment of the Joint Venture’s first owned facility in Cedar Knolls, NJ.

As previously announced, the Joint Venture, The New Jersey Imaging Network, LLC, was conceived to achieve several objectives.  First, the Joint Venture establishes a statewide diagnostic imaging network with 37 access points.  Second, the Joint Venture will provide management services to the existing RadNet facilities and imaging facilities to be owned directly by the Joint Venture.  Lastly, the Joint Venture will seek to build or buy additional imaging centers or enter related healthcare businesses in New Jersey.

As part of the initial establishment of the Joint Venture, RadNet and Barnabas Health have executed a definitive agreement to sell RadNet’s imaging center in West Orange, NJ to Barnabas Health. The West Orange Imaging Center is approximately one mile from Barnabas Health’s flagship facility, St. Barnabas Medical Center, and can effectively be integrated into Barnabas Health’s service offerings of that market.  As part of the sales transaction, the Joint Venture will provide management services to this facility after the transaction closes, which is expected to occur upon receiving certain required licenses from New Jersey’s Department of Health and Senior Services.

In addition, the Joint Venture is completing construction of a new imaging center in Cedar Knolls, NJ, which will be a full-service, all-digital, multi-modality facility.  The facility will feature a GE 3Tesla 750W MRI, which produces high resolution images in an open-magnet environment, a GE 64-slice CT scanner, digital mammography, bone densitometry, ultrasonography and digital radiographic services.  This center will replace RadNet’s existing Morristown location, which is a single-modality site whose operations will be transferred to the Cedar Knolls facility.  By consolidating the existing Morristown facility into a comprehensive multi-modality center, the referring physicians to RadNet’s existing Morristown location and other local physicians will now have access to a “one-stop-shopping” diagnostic imaging offering.  The Cedar Knolls facility will include enhanced orthopedic imaging capabilities, as the facility will be co-located in a newly established “Musculoskeletal Center of Excellence.”

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “We are excited about commencing our new venture with Barnabas Health.  Together, RadNet and Barnabas Health have the opportunity to reshape the imaging landscape of Northern New Jersey in ways that will benefit patients and referring physicians alike.  Our Joint Venture will increase patient access to high quality multi-modality imaging, and provide a comprehensive, low-cost service offering to referring physicians and regional health plans.”

Barry H. Ostrowsky, President and Chief Executive Officer of Barnabas Health, stated, “We greatly look forward to the many opportunities that exist in our Joint Venture with RadNet.  Barnabas Health and RadNet will provide excellent and highly accessible diagnostic resources to serve the communities of New Jersey.  The Joint Venture will benefit from the exceptional national reputation of Barnabas Health and its large patient population while relying on the superior imaging center operating experience of RadNet.”

About RadNet, Inc.
RadNet, Inc. is the largest national provider of high-quality, cost-effective fixed-site diagnostic imaging services in the United States through a network of 238 owned and/or operated outpatient imaging centers (inclusive of 20 facilities held in Joint Ventures).  RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 6,300 employees. For more information, visit http://www.radnet.com.

About Barnabas Health
Barnabas Health is the largest not-for-profit integrated healthcare delivery system in New Jersey and one of the largest in the nation, annually caring for more than two million patients and delivering more than 18,000 babies. The system includes six acute care hospitals, two children’s hospitals, a free-standing behavioral health center, ambulatory care centers, geriatric centers, the state’s largest behavioral health network and comprehensive homecare and hospice programs.  Among nationally recognized services are burn treatment; adult and pediatric cardiac surgery; heart, lung, kidney and pancreas transplant; neurology and neurosurgery; reproductive medicine and science; geriatrics; oncology; pediatrics; and women’s services.  Barnabas Health includes 18,200 employees, (the second largest private employer in New Jersey); 4,600 physicians (one-fifth of the actively practicing physicians in New Jersey); and 445 residents and interns.  For more information, log on to the web site at www.barnabashealth.org.

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

Barnabas Health
Jay Picerno
973-322-4102
Executive Vice President and Chief Financial Officer