RadNet Reports its First Quarterly Results since Acquiring Radiologix

FOR IMMEDIATE RELEASE

• For its first quarter, RadNet reports revenue of $105.8 million and EBITDA⁽¹⁾  of $20.3 million

• Company announces the acquisition of an imaging center in Rockville, Maryland

• Company sees further opportunities for expansion and consolidation

LOS ANGELES, Calif., May 21, 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 financial results for its fiscal first quarter ended March 31, 2007.

For the first quarter of fiscal 2007, RadNet reported revenue and EBITDA⁽¹⁾ of $105.8 million and $20.3 million, respectively.  Revenue was up 1.0% (or $1.0 million) and EBITDA was down 0.6% (or $0.1 million), respectively, from what would have been the first quarter revenues and EBITDA⁽¹⁾ of 2006 if the RadNet/Radiologix combination had occurred prior to January 1, 2006.  The results reflect improved volume and margin performance from existing imaging centers and cost savings from the Radiologix acquisition, the combination of which helped offset the negative reimbursement effects of the Deficit Reduction Act on the quarter.

For the first quarter of 2007, as compared to what would have been the first quarter of 2006 if the RadNet/Radiologix combination had occurred prior to January 1, 2006, MRI volume was up 5.4%, CT volume was up 1.5% and PET/CT volume was up 22.1%.  Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, was up 3.6% for the quarter.

Net loss for the first quarter was $4.4 million, or $(0.13) per share, compared to a net loss of $2.9 million or $(0.14) per share, reported in the same period last year (based upon a weighted average number of shares outstanding of 34.3 million and 20.7 million in the quarters for 2007 and 2006, respectively).  Contributing to the net loss were certain non-cash expenses and one-time non-recurring items including:

•  $2.2 million of non-cash employee stock compensation resulting from the vesting of certain management and Board             of Directors options and warrants;

• $0.5 million of one-time severance expense associated with the termination of certain employees related to achieving the previously announced cost savings during the Radiologix integration;

• $0.5 million of non-cash Deferred Financing Expense related to the amortization of financing fees paid as part of our $405 million credit facilities drawn down in November 2006 in connection with the Radiologix acquisition;

•  $0.3 million one-time payment to two physicians in conjunction with Beverly Radiology, our affiliated radiology group, assuming professional responsibilities for one of Radiologix’s regions in Northern California; and

• $0.1 million one-time initial listing fee to NASDAQ.

"We are pleased with our performance in the first full quarter completed since our acquisition of Radiologix.  The results demonstrate that we are performing well despite the Deficit Reduction Act reimbursement cuts.  During this quarter, we focused on the integration of Radiologix and improving operations.” said Dr. Howard Berger, President and Chief Executive Officer.  “We believe our strong platform and experienced management team have set the stage for additional expansion, which we plan to do with a systematic and disciplined approach consistent with our focus on concentrated geographic networks.  We are encountering significant opportunities, and continue to believe our industry will benefit from further consolidation.”

In March, RadNet acquired Rockville Open MRI for $0.5 million in cash and the assumption of debt of $1.1 million. The center provides MRI services and can be expanded to include additional imaging modalities.  The center is in the Southern Maryland market, which is serviced by the Community Radiology Associates physician group.

“This represents the first acquisition that we have completed since our acquisition of Radiologix.  We remain interested in pursuing other opportunities within our core markets.” Said Dr. Berger.  “With continued pressure on smaller operators stemming from competition and the reimbursement changes resulting from the Deficit Reduction Act, we believe there will be many other growth opportunities.”

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not derived 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 cash-based 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. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables below.

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 March 31, 2007, RadNet and its subsidiaries performed 671,652 diagnostic imaging procedures. At October 31, 2006, together with Beverly Radiology Medical Group and Radiologix, and inclusive of full-time and per diem employees, technicians and radiologists, the Company had a total of 3,911employees.

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 RadNets’ ability to continue to grow its business bygenerating patient referrals and contracts with radiology practices, recruiting and retaining technologists, and receiving third-party reimbursement for diagnostic imaging services, as well as RadNet's financial guidance, its statements regarding cost savings with its Radiologix acquisition, 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, 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, 310-445-2800
Executive Vice President and Chief Financial Officer

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