RadNet Acquires The Rolling Oaks Radiology Imaging Centers In Thousand Oaks, California

Main Category: Radiology / Nuclear Medicine
Article Date: 06 Feb 2008 - 4:00 PDT

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RadNet, Inc. (NASDAQ:RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of owned and operated outpatient imaging centers, today reported that it acquired the Rolling Oaks Radiology imaging centers in Thousand Oaks, California, an affluent suburb of Los Angeles in Southern Ventura County.

The practice consists of two centers, one of which is a dedicated women's center. The centers are multimodality and include a combination of MRI, CT, PET/CT, mammography, ultrasound and x-ray. The centers are positioned in the community as high-end, high-quality imaging facilities that employ state-of-the-art technology, including 3 Tesla MRI and 64 slice CT units. The facilities have been fixtures in the Westlake/Thousand Oaks market since 2003.

The Rolling Oaks Medical Group, consisting of five radiologists who staff the two facilities, has been practicing radiology in this medical community for almost 20 years. As part of the transaction, the Rolling Oaks Medical Group has entered into a long-term contract with RadNet, and will continue to provide all radiology services to these two centers as well as to the existing RadNet Westlake/Thousand Oaks facilities on an exclusive basis. The group provides valuable subspecialist capabilities including interventional radiology, dedicated women's imaging and neuroradiology.

The acquired facilities will add approximately $9 million of revenue to RadNet on an annualized basis. The purchase price consisted of approximately $5.9 million in cash and the assumption of approximately $5.9 million of debt.

"This acquisition is illustrative of our strategy of consolidating attractive local markets," said Dr. Howard Berger, President and Chief Executive Officer of RadNet. "The acquisition makes us the leading outpatient imaging provider in the Westlake/Thousand Oaks region, a market that has very attractive patient and payor characteristics. Most importantly, this acquisition provides us with a foundation to capitalize on future opportunities for growth and consolidation in this region.

"The Rolling Oaks practice has a highly-regarded reputation and loyal following in this medical community, and it is a well-run, efficient practice. We are proud to welcome the Rolling Oaks employees and physicians into the RadNet family."

About RadNet, Inc.

RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 145 fully-owned and operated outpatient imaging centers. RadNet's core markets include California, Maryland, New York and Florida. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees. For more information, visit http://www.radnet.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning RadNet's ability to grow its contract management business, as well as RadNet's financial guidance, its statements regarding cost savings, its statements regarding increased business from new operations, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause RadNet's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K and Forms 10Q, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

http://www.radnet.com

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