RadNet Reports Record Second Quarter Revenue and EBITDA

• RadNet reports revenue of $107.0 million and EBITDA^([1]) of $22.2 million; increases of 1.5% and 12.9%, respectively over the prior year’s pro forma quarter

• RadNet reports quarterly Net Income of $1.3 million compared with a loss during the same prior year period

• RadNet reports increased volumes and improved operating margins

LOS ANGELES, Calif., August 14, 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 second quarter ended June 30, 2007.

Three Month Report

For its second quarter of fiscal 2007, RadNet reported revenue and EBITDA⁽¹⁾ of $107.0 million and $22.2 million, respectively.  Revenue increased 1.5% (or $1.5 million) and EBITDA increased 12.9% (or $2.5 million), respectively over the prior year’s pro forma quarter.  The results reflect improved volume and margin performance from existing imaging centers as well as cost saving measures, the combination of which helped offset the negative reimbursement effects of the federal Deficit Reduction Act on the quarter.

For the second quarter of 2007, as compared to the prior year’s pro forma quarter, MRI volume increased 7.7%, CT volume increased 5.1% and PET/CT volume increased 22.0%.  Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 5.6% over the prior year’s pro forma quarter.

Net Income for the second quarter was $1.3 million, or $0.04 per share, compared to a net loss of $0.5 million or $(0.03) per share, reported in the same period last year (based upon a weighted average number of fully diluted shares outstanding of 37.8 million and 21.2 million in the quarters for 2007 and 2006, respectively).  Affecting net income were certain non-cash expenses and one-time non-recurring items including:

• $0.4 million of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants;

• $0.2 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; and

• $0.7 gain on the fair value of interest rate hedges related to the Company’s credit facilities.

“We are pleased with our performance, which continues to validate the strength of our multi-modality, regionally concentrated approach.  Our focus on driving volume growth and effecting cost saving measures demonstrates the benefits achievable from consolidation in an industry faced with reimbursement challenges.  We continue to focus on the integration of Radiologix and improving operating metrics.” said Dr. Howard Berger, President and Chief Executive Officer.  “The platform we are optimizing is one that should be able to support substantially more internal growth and future acquisitions.  We are seeing many expansion opportunities and strongly feel that our company and the industry as a whole will benefit from further consolidation.”

Six Month Report

For the six month period ending June 30, 2007, RadNet reported revenue and EBITDA⁽¹⁾ of $212.8 million and $42.6 million, respectively.  Revenue increased 1.2% (or $2.6 million) and EBITDA increased 6.0% (or $2.4 million), respectively, over the prior year’s pro forma quarter.

For the six month period ending June 30, 2007, as compared to the prior year’s pro forma quarter, MRI volume increased 6.6%, CT volume increased 3.3% and PET/CT volume increased 22.1%.  Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.6% for the six months of 2007 over the prior year’s pro forma six month period.

Net Loss for the six month period ending June 30, 2007 was $3.4 million, or $(0.10) per share, compared to a net loss of $3.5 million or $(0.17) per share, reported in the same period last year (based upon a weighted average number of fully diluted shares outstanding of 34.5 million and 21.0 million in the same six month periods for 2007 and 2006, respectively).  Affecting net income were certain non-cash expenses and one-time non-recurring items including:

• $2.6 million of non-cash employee stock compensation resulting from the vesting of certain management and Board of Directors options and warrants;

• $0.7 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;

• $1.0 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;

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

• $0.6 gain on the fair value of interest rate hedges related to the Company’s credit facilities.

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not reported 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 which follow.

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 operations in six states, including California, Maryland, New York, Florida, Kansas and Colorado.  RadNet offers to its patients and referring physicians 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 RadNets’ ability to continue to grow its business bygenerating patient referrals and contracts with radiology practices, future acquisitions, 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, 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.

[financial statements eliminated from this copy of the original press release]

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