Fonar Corp (FONR)

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FONAR Sells 47th Stand-Up MRI; Third 'MRI of America' Entity Buys First of Five for Arizona

MELVILLE, N.Y.--(BUSINESS WIRE)--July 1, 2003--FONAR Corporation (NASDAQ-FONR), The MRI Specialist(TM), announced today the sale of its 47th FONAR Stand-Up(TM) MRI scanner to MRI of America III, LLC, based in Denver, Colorado. This is the third MRI-of-America entity to contract for the purchase of five (5) FONAR Stand-Up(TM) MRIs. MRI of America III, LLC plans to place all five (5) in the metro Phoenix area, the first is to be installed in Phoenix.

Mr. Robert L. Conger, CEO of MRI of America said, "This contract for MRI of America III means our group is right on target with our original plan to purchase 20 FONAR Stand-Up(TM) MRIs. MRI of America, LLC, purchased its first machine in mid-February, and just four months later, on June 23rd, we began scanning in Centennial, Colorado. MRI of America II, LP, purchased its scanner two months later, which is now being installed in Farmers Branch, Texas, just north of downtown Dallas. Now, MRI of America III, LLC, has purchased its first machine, which will be installed in the Phoenix Metroplex. MRI of American IV, LLC, has already been formed and plans to purchase its first of five scanners within four to six weeks for installation in the Salt Lake City and Las Vegas markets. Each of the MRI of America entities has contracted to buy at least five (5) FONAR Stand-Up(TM) MRI Systems for installation across the Southwest within the next 12-18 months."

Mr. Conger continued, "We plan to place all five (5) of the FONAR Stand-Up(TM) MRIs from this contract in the metro Phoenix market within the next year. We are already looking at locations in Chandler, Scottsdale, Mesa and Goodyear, and are also giving strong consideration to Tucson."

"Of course we couldn't have done this without the help of FONAR's management team," added Mr. Conger. "Since FONAR is the first company in the MRI industry, having been in the industry several years longer than any of its competitors, we have greatly benefited from its 25 years of MRI experience and expertise."

Raymond Damadian, president and founder of FONAR responded, "It is a delight to have a customer such as the Conger group that is able to do its part to meet aggressive installation schedules. At the beginning of each project, they make it very clear what they are going to do, and we all agree on a timetable. From then on, they do exactly what they say they are going to do. This kind of working relationship is very significant to FONAR because it allows us to install scanners effectively and efficiently. Good planning is good for the customer and it is good for FONAR."

MRI of America is one of seven multi-unit buyers of the FONAR Stand-Up(TM) MRI. The Stand-Up(TM) MRI is an Upright(TM) Imaging System by FONAR Corporation.

MRI Specialist, Stand-Up, Upright, Position Imaging and PMRI are trademarks of FONAR Corporation.

Be sure to visit FONAR's Web site for Company product and investor information http://www.fonar.com

CONTACT:
FONAR Corporation, Melville
Daniel Culver/David Terry, 631/694-2929
Fax: [phone]
[e-mail]

SOURCE: FONAR Corporation