Fonar Corp (FONR)

[ProfitScout]

FONAR Announces Reverse Stock Split

MELVILLE, N.Y., Apr 17, 2007 (BUSINESS WIRE) -- FONAR Corporation ( FONRD ), The Inventor of MR Scanning(TM), today announced that following its annual meeting of stockholders held yesterday, it has effected a reverse stock split at a ratio of 1:25 (one new share for every 25 shares) of its outstanding common stock and all other classes of its outstanding stock, effective April 17, 2007.

In accordance with normal NASDAQ procedures related to reverse stock splits, NASDAQ will append a "D" to the symbol to become (FONRD) for a period of approximately 20 trading days. Afterwards, at the open of business on May 15, 2007, NASDAQ will remove the "D" and the symbol will be (FONR) as before.

As a result of the hearing held before the NASDAQ Listing Qualifications Panel ("Panel") on February 15, 2007, FONAR's request for continued listing on The NASDAQ Stock Market was granted, subject to the condition that on or before May 1, 2007, the Company must have evidenced a closing bid price of $1.00 or more for a minimum of ten consecutive trading days. The Panel's decision was based on its determination that the reverse stock split to be presented at the Annual Meeting on April 16, 2007, when implemented, would be likely to cure the bid price deficiency and allow the Company to maintain compliance for the longer term. Accordingly, the company has effected a reverse stock split today.

About FONAR

FONAR(R) 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, FONAR has installed hundreds of MRI scanners worldwide. Their stellar product line includes the FONAR UPRIGHT(TM) Multi-Position(TM) MRI (also known as the STAND-UP(TM) MRI), the only whole-body MRI that performs Multi-Position(TM) imaging (mpMRI(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) Multi-Position(TM) MRI often sees the patient's problem that other scanners cannot because they are lie-down only. With nearly one half million patients scanned, the patient-friendly FONAR UPRIGHT(TM) Multi-Position(TM) MRI has a near zero claustrophobic rejection rate by patients. A radiologist said, "FONAR UPRIGHT(TM) MRI - No More Claustrophobia - The Tunnel Is Gone." As another 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. FONAR'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 400 employees.

The Inventor of MR Scanning(TM), Full Range of Motion(TM), STAND-UP(TM), UPRIGHT(TM), Multi-Position(TM), pMRI(TM), True Flow(TM), and The Proof is in the Picture(TM) are trademarks of FONAR Corporation.

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

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.

SOURCE: FONAR Corporation

FONAR Corporation
Daniel Culver, 631-694-2929
Fax: [phone]
http://www.fonar.com
[e-mail]


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