UPDATE: FONAR's HMCA Buys Business Managing 12 UPRIGHT MRI Scanners

FONAR Corporation

, The Inventor of MR Scanning(TM), reported that yesterday HMCA, a subsidiary of Fonar Corporation, acquired through a majority interest in a newly formed limited liability company, a business managing 12 Stand-Up(R) MRI centers and 2 other scanning centers located in Florida and New York for purchase price of $34.4 million dollars. The newly formed limited liability company will be known as Health Diagnostics Management, LLC (HDM). The 12 Stand-Up(R) MRI centers managed by HDM together with the 11 managed by HMCA now comprise the largest network of Stand-Up(R) MRI centers in the nation (23). By combining the resources of HMCA and HDM, the Company will enjoy the benefits of 1) economies of scale, 2) shared administrative and technical expertise and capabilities, and 3) joint marketing strategies. Raymond Damadian, president and founder of FONAR said, "We are delighted with this acquisition. The interests that we just acquired allow us to grow quite significantly in one step. We have now gone from 11 UPRIGHT(R) MRI scanners to 23."