Fonar Corp (FONR)

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Tennessee CON Board Approves FONAR UPRIGHT MRI Unanimously (8-0)

MELVILLE, N.Y., May 02, 2007 (BUSINESS WIRE) -- FONAR Corporation (NASDAQ:FONRD), The Inventor of MR Scanning(TM), announced today that on April 25, 2007, the Tennessee Certificate of Need (CON) Board, despite opposition testimony from a competitor, approved Next Generation MRI's application to purchase and install FONAR's UPRIGHT(TM) Multi-Position(TM) MRI in Nashville by an 8-0 vote. David McCord, M.D., president of Next Generation MRI, is a specialist in orthopedic spine surgery and spearheaded the presentation to the CON board.

Also present at the hearing were representatives from Soteria Imaging, of Louisville, Kentucky. Soteria Imaging, a partner in Next Generation MRI, will provide non-medical management services at the Nashville location. Soteria currently owns and operates two FONAR UPRIGHT(TM) Multi-Position(TM) MRIs in the Minneapolis-St. Paul area.

This hearing was Dr. McCord's third attempt to obtain CON approval to install a FONAR UPRIGHT(TM) MRI in Nashville. While the CON Board was sympathetic to Dr. McCord's request on the earlier attempts, competitor diagnostic imaging providers were able to block the approvals.

At this hearing Dr. McCord said, "As a spine surgeon who is responsible for my patients' care, I need the most accurate diagnoses in order to achieve the best surgical outcomes. In my practice, I have performed thousands of discograms. They're costly and somewhat dangerous, but they have been necessary. This discogram procedure and its potential risks to the patient may be decreased by the FONAR UPRIGHT(TM) MRI." Using a mannequin, Dr. McCord gave a memorable demonstration to the CON Board of how a discogram is administered. In order to deliver a dye into the intervertebral discs, long needles must be used to penetrate the back of the moderately-sedated patient. Often several "stabs" are required in order to find the proper spot. Then the patient typically undergoes a CT scan.

"The FONAR Stand-Up(TM) MRI," continued Dr. McCord, "may replace some discogram studies. It's much more cost effective, its high-resolution images are far superior to those of an X-ray, and it is totally safe. It is especially useful with children and the elderly population. We surgeons definitely need it."

The hearing included compelling testimony from a woman whose elderly father significantly benefited from the FONAR UPRIGHT(TM) Multi-Position(TM) MRI. Her father underwent spine surgery, but the surgery failed and he continued to experience debilitating pain in his back, except when lying down. He had several recumbent MRI scans. They failed to find the problem. He wanted to be scanned on an UPRIGHT(TM) MRI.

He traveled to Atlanta where the FONAR UPRIGHT(TM) Multi-Position(TM) MRI found the problem. With the patient's problem finally identified, he underwent a relatively minor surgical procedure that helped alleviate the man's pain, allowing him to return to "a normal life." Dr. McCord said, "It was the FONAR UPRIGHT(TM) Multi-Position(TM) MRI that found this patient's problem. The other MRI scans were simply a waste of time and resources. I am looking forward to acquiring this unit for my practice as soon as possible."

Raymond Damadian, president and founder of FONAR, said, "We are thankful to Dr. McCord who has worked hard to obtain a CON for a FONAR UPRIGHT(TM) Multi-Position(TM) MRI. We are pleased that one of our UPRIGHT(TM) MRI scanners will soon be operational in the prestigious medical market of Nashville, Tennessee."

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 Full Range of Motion(TM) (ROM) Multi-Position(TM) imaging (mpMRI(TM)) that enables patients to be scanned in numerous weight-bearing positions, i.e. standing, sitting, in flexion, in extension and, in particular, in the position that generates symptoms, so that a picture can be obtained of the actual pathology giving rise to the patient's symptoms (e.g. pain). The scanner also performs all the scans of a conventional MRI with the patients in the usual lie-down position. The FONAR UPRIGHT(TM) Full Range of Motion(TM) (ROM) Multi-Position(TM) MRI often sees the patient's problem that other scanners cannot, because they are lie-down only. Approximately 85% of patients are scanned sitting while they watch a 42" flat screen TV.

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

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's filings with the Securities and Exchange Commission.

SOURCE: FONAR Corporation

CONTACT: FONAR(TM) Corporation
Daniel Culver, 631-694-2929
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Copyright Business Wire 2007

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