Fonar Corp (FONR)

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13th FONAR Stand-Up MRI Installed; 5th in Metro New York

MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 22, 2003--FONAR Corporation (NASDAQ-FONR), The MRI Specialist(tm), announced today that it has completed the installation of a Stand-Up(tm) MRI in Bensonhurst, Brooklyn, New York. The FONAR Stand-Up(tm) MRI, an upgrade of an earlier model FONAR scanner owned by Bensonhurst MRI, P.C., is housed in a newly renovated facility just blocks away from the old. The business has changed its name to Stand-Up(tm) MRI of Bensonhurst, P.C. It is managed by Health Management Corporation of America (HMCA), FONAR's physician and diagnostic services management subsidiary. There are now 13 Stand-Up(tm) MRI facilities in operation.

Located at 2671 86th Street (718-946-7304) in Brooklyn, Stand-Up(tm) MRI of Bensonhurst, P.C., is the second HMCA-managed business that has been upgraded with a FONAR Stand-Up(tm) MRI. The first was in Islandia, New York a year ago. Raymond V. Damadian, M.D., president and founder of FONAR, said, "The upgrade at the Islandia facility has been tremendously successful. In just a matter of months the number of referring physicians tripled, and we're now consistently scanning over 400 patients a month. We are hoping for similar results in Bensonhurst. Our plan is to upgrade as many HMCA-managed sites as we can, as quickly as we can, which, of course, will substantially increase HMCA, and therefore FONAR, revenues."

Dr. Damadian explained why the Bensonhurst site was the next HMCA-managed business chosen for a Stand-Up(tm) MRI upgrade: "We've been doing a lot of radio, TV and billboard advertising in the metropolitan New York area for a year now. When we started, there was only one Stand-Up(tm) MRI facility - the one in Islandia, Long Island. The advertising not only quickly filled the patient schedule at Islandia, but it has also been creating widespread public awareness and understanding of the unique advantages of the FONAR Stand-Up(tm) MRI. As a result, every FONAR Stand-Up(tm) MRI that has since come on line in the metropolitan New York area has enjoyed unusually high rates of growth in patient volume. Our business plan is for HMCA to capitalize on this phenomenon by adding more of its own locations, and thereby enjoy increasingly better returns on advertising dollars."

Dr. Damadian commented on the reasons for the success of the FONAR Stand-Up(tm) MRI: "Patients love the fact that they can have an MRI scan while sitting comfortably and watching a big-screen TV. And doctors, and patients for that matter, are learning that the FONAR Stand-Up(tm) MRI has the ability to detect, and in fact has detected, pathologies that would have gone undetected with any other MRI. It's a wonderful product."

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

CONTACT:
FONAR Corporation, Melville
Daniel Culver, Director of Communications,
David Terry, VP, Secretary,

PHONE: [phone]

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SOURCE: FONAR Corporation