Fonar Corp (FONR)

[ProfitScout]

FONAR Chairman and President Dr. Raymond Damadian Purchases Company Stock in Open Market

MELVILLE, N.Y., May 17, 2007 (BUSINESS WIRE) -- FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning(TM), announced today that its Chairman, President and Founder, Raymond Damadian, M.D., purchased 8,500 shares of FONAR stock in the open market on May 15, 2007. This brings his ownership to 120,302.12 shares of common stock. Dr. Damadian has not sold a share of FONAR stock in more than a decade. The purchase was made pursuant to the Company's corporate governance guidelines for insider stock purchases.

In explaining his purchase, Dr. Damadian said, "It is my view that right now is the most exciting period in FONAR's 28-year history. FONAR Corporation has the 'electric lights' while all other MRI vendors remain with the 'gas lights'. FONAR's priority in this UPRIGHT(TM) MRI field is well deserved, after all it has labored to originate MRI and make the medical power of MRI technology available to the world."

"From my perspective, the transformation of MRI to the 'electric light' era of upright imaging and maximum visibility is inevitable," said Dr. Damadian. "'Gas lights' are O.K., until 'electric lights' become available. When the 'electric lights' (UPRIGHT(TM) MRI) that can see the patient's problem become available, you can no longer live with the gas lights (recumbent MRI) that can't. Industry 'force of habit' allegiance to 'gas lights' in multiple arenas must ultimately defer to the 'electric lights.' For example, hospitals cannot continue to engage in spine surgery based on recumbent MRI scans that cannot see much of the patient's pathology when the technology now exists (FONAR UPRIGHT(TM) MRI) that can see it."

Dr. Paul Pavlov, Director of the "Spine Centre" at the Netherlands largest orthopaedic hospital, in purchasing the FONAR UPRIGHT(TM) MRI said, "when it came to facing the risk of doing the wrong spine surgery, based on the wrong diagnosis obtained from recumbent MRI, we did not regard the utilization of this new technology, from our patient's perspective, as optional. It was mandatory."

"In the U.S., half of all the MRI scans performed are of the spine, approximately 10 million annually," said Dr. Damadian, "and of those, 916,000 patients per year proceed to surgery. (Center for Disease Control, U.S. Dept. of Health and Human Services)."

"Moreover, physician testimonials are emerging where surgeon after surgeon who has had occasion to have his patients scanned in a FONAR UPRIGHT(TM) MRI prior to surgery is reporting that FONAR's UPRIGHT(TM) MRI is invaluable to his spine surgery and patient outcomes. One spine surgeon reported to me," said Dr. Damadian, "'I am now addicted to your machine. I will not take my patient to spine surgery without first examining him in an UPRIGHT(TM) MRI machine. In 20% of cases it changes the surgical procedure I elect to choose.' Also, a top surgeon in Dallas has reported the same 20% from the spine surgeons sending to his FONAR UPRIGHT(TM) MRI scanner."

Indeed, Professor Francis Smith, M.D., from the University of Aberdeen, U.K. has reported that in a series of 25 patients suffering from back pain, 13 (52%) had visible pathology in the upright position on FONAR UPRIGHT(TM) MRI images that was not visible on recumbent images. Each of (the) thirteen patients has undergone appropriate surgery and six months post surgery remain symptom free."

"New needs for FONAR UPRIGHT(TM) imaging continuously arise," said Dr. Damadian. "The evaluation and treatment of scoliosis in girls and young women is badly in need of the FONAR UPRIGHT(TM) MRI image analysis. Approximately 3.0 million women have this need. FONAR UPRIGHT(TM) imaging is needed for the detection of breast implant leaks. Motor vehicle whiplash injuries require FONAR UPRIGHT(TM) Multi-Position(TM) image analysis. Patients with Chiari Syndrome require the FONAR UPRIGHT(TM) image analysis. Additionally, cardiovascular patients require FONAR UPRIGHT(TM) MR analysis. Coronary blood flow should be evaluated by FONAR UPRIGHT(TM) MRA(TM). Carotid and cerebral blood flow should be evaluated with FONAR UPRIGHT(TM) MRA(TM). Hip patients and knee patients and patients with venous varicosities, all require FONAR UPRIGHT(TM) imaging. The applications and uses of FONAR UPRIGHT(TM) MRI analysis are therefore limitless and constantly expanding, as more and more physicians become aware of how they can help their patients by the use of FONAR UPRIGHT(TM) MR imaging technology. Additionally, our installations at key hospital centers, and collaborations with major university teaching centers eager to explore the clinical benefits of FONAR's UPRIGHT(TM) imaging, are just now coming 'on-line.'"

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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
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http://www.fonar.com
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