Performance of Five FONAR Upright MRIs Drive Repeat Sales To California Customers

Monday September 12, 11:05 am ET

MELVILLE, N.Y.--(BUSINESS WIRE)--Sept. 12, 2005--FONAR Corporation (NASDAQ: FONR - News)

Ambulatory Services Corporation of California Intends to Place a Sixth MRI for Expansion into Las Vegas, Nevada and Anticipates Purchasing Multiple Units During the Next Year FONAR Corporation (NASDAQ: FONR - News), The MRI Specialist(TM), announced today that the successful performance of five Upright(TM) MRIs have led to substantial growth for Ambulatory Services Corporation of California ("ASC"). FONAR's Upright(TM) MRIs are presently installed in ASC facilities located in five cities in four states: San Bernardino and La Quinta, California, Renton, Washington, Boise, Idaho and Denver, Colorado. Based on the popularity of the FONAR Upright(TM) MRI for patient comfort and superior pathology, ASC now plans to place a sixth machine in Las Vegas, Nevada. The Las Vegas facility is expected to open in 2006. ASC also has plans to expand in new and existing markets and purchase multiple Upright(TM) MRIs over the next year.

Peter Solodko, CEO of ASC, said, "We are successful at our Upright(TM) MRI centers because of the value added component of having a scan or scans from an Upright(TM) MRI as compared to a recumbent-only MRI scanner. This is due to the simple reality that many patients only experience pain and present pathology in certain positions, be it standing, bending, flexing, extending or sitting. Upright(TM) MRIs are the only equipment on the market capable of scanning a patient in those and other positions and presenting a complete picture of the patient's pathology which allows an administering physician to treat patients with greater success and improve patient outcomes."

Mr. Solodko continued, "While the MRI market in California is competitive, it is the many advantages of FONAR's Upright(TM) MRI that have enabled ASC facilities to substantially increase their practitioner referral base, the number of MRIs performed, patient satisfaction, and revenue growth. We are excited about all future opportunities and our expansion into the Las Vegas marketplace. We look forward to continued growth of ASC with the FONAR Upright(TM) MRI serving as our driving force and purchasing more FONAR Upright(TM) MRI scanners in the next year."

ASC Web sites include: www.boiseuprightmri.com, www.desertstandupmri.com and www.hallmarkcenter.com.

About FONAR

FONAR was incorporated in 1978, making it the first, oldest and most experienced MRI manufacturer in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. Since its inception, the Company has successfully installed MRI scanners for customers around the world. FONAR's stellar product line includes the Upright(TM) MRI (also known as the Stand-Up(TM) MRI), the only whole-body MRI that performs Position(TM) imaging (pMRI(TM)) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR Upright(TM) MRI often sees the patient's problem that other scanners cannot because they are lie-down only. With over 100,000 patients scanned, the patient-friendly Upright(TM) MRI has a near zero claustrophobic rejection rate by patients. As a FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while they watch a 42" flat screen TV. The Company's latest MRI scanner is the FONAR 360(TM), a room-size recumbent scanner that optimizes openness while facilitating physician access to the patient. FONAR is headquartered on Long Island, New York, and has approximately 500 employees. Additional information may be found on the FONAR Web site at www.fonar.com.

MRI Specialist, Stand-Up, Upright, Position, PMRI and The Proof is in the Picture are trademarks of FONAR.

This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company filings with the Securities and Exchange Commission.