RadNet announces acquisition of imaging centers in Northern New Jersey from Progressive Health

RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 191 fully-owned and operated outpatient imaging centers, today reported it has executed a definitive agreement to acquire five imaging centers in Northern New Jersey and a 50% equity interest in a sixth center from Progressive Health, LLC and certain affiliates and related entities.

RadNet will pay $17,150,000 plus a warrant to purchase 200,000 shares of RadNet common stock for the Northern New Jersey facilities. The facilities located in Englewood Cliffs, Union City, Hackensack, Bloomfield, Englewood and Rutherford operate a combination of MRI, CT, ultrasound, mammography, x-ray and other related modalities. Including the Rutherford facility, which will be 50% owned by RadNet upon closing, the facilities are expected to add approximately $14 million of revenue to RadNet on an annualized basis.

In connection with the acquisition, the two managing principals of Progressive Health will assume key management roles in RadNet's New Jersey operations. William Farrell will become RadNet's Senior Vice President of New Jersey Operations, and Robert Farrell will become RadNet's Senior Vice President and Northeast Development Officer. The operational management of the six Progressive Health facilities will be consolidated with those of the 11 New Jersey facilities RadNet has acquired since the beginning of 2009.

Dr. Howard Berger, President and Chief Executive Officer of Radnet, noted, "In less than a year and a half, we have created a RadNet network of 17 facilities in Northern New Jersey, thereby becoming the leading multimodality provider of outpatient imaging services in a very densely populated region. We continue to be committed to Northern New Jersey as a core market for RadNet and believe there is further opportunity for expansion and consolidation. The Northern New Jersey market continues to be a natural extension of our core Rockland County, New York market which it borders."

Dr. Berger added, "I am very excited about welcoming Bill and Bob Farrell to the RadNet management team. The Farrells have been respected members of our industry for over 20 years and have extensive knowledge of the New Jersey marketplace. Their expertise will add a key level of infrastructure and management in New Jersey, where we plan to continue our expansion and consolidation strategy."

The acquisition is expected to close in October, 2010, and is subject to the transfer of certain New Jersey operating licenses to RadNet.