Fonar Corp (FONR)

[ProfitScout]

FONAR UPRIGHT MRI(TM) Sold To Established West Coast Imaging Company

MELVILLE, N.Y., Feb 28, 2006 (BUSINESS WIRE) -- FONAR Corporation ( FONR ), The Inventor of MR Scanning(TM), announced today that a FONAR UPRIGHT(TM) MRI has been sold to an established, multi-modality imaging company based on the west coast. The FONAR UPRIGHT(TM) MRI is expected to be installed in the mid-west within the next six months. For competitive reasons the customer chooses to remain anonymous until the scanner is installed.

An executive for the multi-modality imaging company commented, "For the past year we performed a thorough due diligence examination of the FONAR UPRIGHT(TM) MRI. After an extensive evaluation we became convinced of the unique potential of Position(TM) weight-bearing imaging to address medical concerns that could not be properly addressed without Upright (TM) imaging. In addition, we have evaluated the project from a commercial and economic perspective. We purchased the FONAR UPRIGHT(TM) MRI because we recognized its potential benefits for patient care and the business opportunity that exists from servicing that need."

Raymond Damadian, president and founder of FONAR said, "We are excited to have sold our FONAR UPRIGHT(TM) MRI to this well established and experienced imaging company. We understand the reasons for their purchase as the MRI marketplace is very competitive. The FONAR UPRIGHT(TM) MRI has the advantage of being the most patient-friendly MRI on the market. It is the first MRI to have a near-zero claustrophobic rejection rate. Competitor scanners have a finite rejection rate. Today's 'Open' MRI scanners still have a large magnet pole just inches from the patient's nose that continues to generate anxiety in the claustrophobic patient. On the other hand, in the FONAR UPRIGHT(TM) MRI, the patient sits up with nothing in front of his face and watches television on a 42" flat screen TV while he's being scanned. The patients are delighted with their scans, especially those who have had prior scans inside the 'tube MRI'."

"But there is another, even more powerful reason, why this customer and others would purchase the FONAR UPRIGHT(TM) MRI," said Dr. Damadian. "An Upright(TM) imaging MRI often has a decisive advantage over a recumbent MRI scanner. This is especially true when imaging the spine, which is approximately 50% of all MRI scans performed. Our imaging centers are seeing countless cases where it makes a difference, and there are journal articles in distinguished peer-reviewed journals and textbooks that underscore the need for Position(TM) imaging."

"When you consider the features, image quality and support for this product, you have a complete package for our customers," continued Dr. Damadian. "We look forward to working with our new customer and to quickly getting their FONAR UPRIGHT(TM) MRI installed."

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) 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 nearly one half million patients scanned, the patient-friendly FONAR UPRIGHT(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, 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(TM), True Flow(TM) MRI, Stand-Up(TM) MRI, FONAR UPRIGHT(TM) MRI, Position(TM) MRI, PMRI(TM) and The Proof is in the Picture(TM) are trademarks of FONAR(R) 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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