Alliance HealthCare Services commences cash tender offer for its 7¼% Senior Subordinated Notes

Alliance HealthCare Services, Inc. (“Alliance”) (NYSE: AIQ) announced today that it commenced a cash tender offer for any and all of its outstanding 7¼% Senior Subordinated Notes due 2012 (the “notes”). In connection with the tender offer, Alliance is soliciting holders to consent to proposed amendments to the indentures governing the notes, which will eliminate substantially all of the restrictive covenants and certain other provisions.

The tender offer will expire at midnight, New York City time, on Thursday, December 10, 2009, unless extended or terminated (such date and time, including any such extension, the “Expiration Date”). Holders who validly tender and do not validly withdraw their notes and validly deliver and do not validly revoke their consents on or prior to the Expiration Date will be entitled to receive $1,001.25 for each $1,000 principal amount of notes tendered by the holder (the “Tender Offer Consideration”).

Holders who validly tender their notes and validly deliver their consents on or prior to 5:00 p.m., New York City time, on Wednesday, November 25, 2009, unless extended (such date and time, including extensions, the “Consent Date”), and do not validly withdraw their notes and validly revoke their consents on or prior to the Consent Date will be entitled to receive $1,002.50 for each $1,000 principal amount of notes tendered by the holder, which includes a consent payment (the “Consent Payment”) of $1.25 per $1,000 principal amount of notes (the date of such payment, the “early settlement date”). Holders tendering after the Consent Date will only be eligible to receive the Tender Offer Consideration and not the Consent Payment (the date of such payment, the “final settlement date”).

Holders who validly tender and do not validly withdraw their notes in the tender offer will also be paid accrued and unpaid interest from the last interest payment date to, but not including, the applicable settlement date, payable on the applicable settlement date. All payments will be made on the applicable settlement date if, but only if, the notes are accepted for payment pursuant to the terms of the tender offer. The terms and conditions of the tender offer and consent solicitation, including the conditions to Alliance’s obligation to accept the notes tendered and pay the purchase price therefor, are set forth in Alliance’s Offer to Purchase and Consent Solicitation Statement dated November 12, 2009. Alliance may amend, extend or terminate the tender offer and consent solicitation.