2nd FONAR Stand-Up MRI Shipped To FONAR's 1st Customer; Four Installations Currently Underway.

Health/Medical Writers

MELVILLE, N.Y.--(BW HealthWire)--July 23, 2002

FONAR Corporation (NASDAQ-FONR), The MRI Specialist(TM), announced today it has shipped and is installing a Stand-Up MRI(TM) in Shady Grove, Maryland. The customer, Washington Open MRI, also purchased the first Stand-Up MRI(TM) and has purchased a total of four.

To date FONAR has shipped a total of eleven Stand-Up MRI(TM) scanners, four of which are currently being installed.

Raymond Damadian, M.D., president and founder of FONAR said, "We are very pleased to bring to our customers another Stand-Up MRI(TM). This is the world's first MRI scanner that performs weight-bearing, Position Imaging(TM) (pMRI(TM)), where the patient can be scanned standing or sitting upright, as well as in any conventional lie-down position. We have sold 26 Stand-Up MRI(TM) scanners and have shipped eleven. As our customers prepare their sites, we look forward to shipping them their scanners."

The most prominent of the four that are underway is in Aberdeen, Scotland, at the University of Aberdeen. The University of Aberdeen has a well-deserved reputation as one of the top centers in the world for the development of new medical imaging technology.

The University of Aberdeen had been awarded a grant by the Scottish government to purchase FONAR's Stand-Up MRI(TM) for the purpose of exploring Position Imaging(TM) (pMRI(TM)) and introducing it into the practice of medicine. Francis W. Smith, M.D., a principal on the grant, was a pioneer in the development of MRI technology. He presided over the first clinical trials of 1,000 patients studied in an MRI scanner. He remarked, "Position Imaging(TM) begins a whole new era in the practice of medicine. I expect that within five years anyone who performs only a recumbent MRI of the spine will be deemed to be negligent."

The Stand-Up MRI(TM) is the flagship of the FONAR product line.

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's filings with the Securities and Exchange Commission.