Fonar Corp (FONR)

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FONAR Announces Entry Into Middle East with First Regional Purchase of its Upright MRI

MELVILLE, N.Y., Dec 15, 2005 (BUSINESS WIRE) -- FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning(TM), announced today its entry into the Middle Eastern market for diagnostic magnetic resonance imaging (MRI) scanners. Highlighting the Company's geographic expansion into this market is the first regional sale of FONAR's flagship product - the Upright(TM) MRI - which is the world's only whole-body MRI scanner dedicated to Upright(TM) imaging. The sale was made to a hospital in Kuwait, which is centrally located as a gateway to the oil-rich nations of the Persian Gulf.

According to a report published in June 2005 by Espicom ( www.espicom.com), the five main Gulf markets represent an import-dependent marketplace for medical products worth $800 million a year. Espicom is a leading provider of independent and impartial market information with over 25 years continuous experience in the medical devices and pharmaceuticals markets. Separately, STAT-USA ( www.stat-usa.gov), a service of the U.S. Department of Commerce, reported that in 2003 the Kuwait Ministry of Health (MOH) announced plans to allocate $170 million for the upgrade and modernization of medical equipment used in the country's healthcare facilities, particularly for the purchase of new imaging equipment. In addition, the Kuwait MOH recently issued 14 licenses for the construction of new private hospitals, substantially increasing the need for medical device equipment.

The Kuwait sale is the 9th Upright(TM) MRI scanner to be sold outside of the continental United States. In September 2005, FONAR announced its entry into Germany, the largest market for medical devices in Europe, with its first sale in that country. In addition to comprehensive coverage of the United States, FONAR has increased its marketing efforts to further penetrate the European and Middle Eastern markets. The Upright(TM) MRI is now being actively marketed in most of the world's major markets.

Raymond Damadian, M.D., president and founder of FONAR, said, "The Kuwait hospital that purchased this equipment was intent on purchasing the best technology available today and traveled to Europe to see our equipment perform. They selected the FONAR Upright(TM) MRI once they recognized it to be 21st century medical technology and that utilizing the FONAR Upright(TM) MR would improve their patients' medical outcomes."

About FONAR

FONAR 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 over 300 MRI scanners worldwide. Their stellar product line includes the Upright(TM) MRI (also known as the Stand-Up(TM) MRI), the only whole-body MRI that performs Position(TM) imaging (pMRI(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) MRI often sees the patient's problem that other scanners cannot because they are lie-down only. With over 100,000 patients scanned, the patient-friendly Upright(TM) MRI has a near zero claustrophobic rejection rate by patients. As a 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 500 employees.

The Inventor of MR Scanning, True Flow, Stand-Up, Upright, Position, PMRI and The Proof is in the Picture are trademarks of FONAR.

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

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