Advanced NMR Systems reports financial results for the third quarter and first nine months of fiscal 1996.

WILMINGTON, Mass.--(BUSINESS WIRE)--Aug. 19, 1996--Advanced NMR Systems Inc. (NASDAQ:ANMR) today reported a consolidated net loss of $1,700,942, or $.06 per share, for the third quarter of fiscal 1996, including ANMR's share of losses in its majority-owned subsidiary, Advanced Mammography Systems Inc. (NASDAQ:MAMO). The company reported consolidated net income of $393,161 for the comparable quarter of fiscal 1995. For the first nine months of fiscal 1996, the company reported a consolidated net loss of $4,020,632, or $.13 per share, compared with a net loss of $1,810,374, or $.08 per share, in the same period of fiscal 1995.

Consolidated revenues for the third quarter were $7,055,400 compared with $4,333,414 in the fiscal 1995 period reflecting a quarterly revenue contribution of $6,773,129 from ANMR's diagnostic imaging and rehabilitation services business acquired in August 1995 and a decrease in system sales. Revenues for the first nine months of fiscal 1996 rose to $21,989,128 from $6,317,395 in the same period of fiscal 1995 reflecting the acquisition made in the second half of fiscal 1995.

Jack Nelson, ANMR's chairman and chief executive officer, stated, "This quarter's results reflect our continuing efforts to eliminate R&D expenses in light of lagging equipment sales. We continue our optimism in the growth of revenues from our MDI subsidiary in its mobile and fixed MRI service operations. Furthermore, we are witnessing the continued growth of revenues and income from our Medical Diagnostics & Rehabilitation (MD&R) services operation. We continue to focus on opportunities for expansion in both the imaging service and rehabilitation markets and remain confident that we can maximize opportunities for shareholder benefit."

This release contains forward-looking statements based upon current expectations that include a number of business risks and uncertainties. The factors that could cause results to differ materially include the following: delays in product development, lack of market acceptance of the technology and changes in health care regulations, including reimbursement programs.

Advanced NMR Systems Inc., is a provider of diagnostic imaging and rehabilitation services through its wholly-owned subsidiary, Medical Diagnostics Inc. and develops high field MRI technology. Its majority-owned subsidiary, Advanced Mammography Systems Inc. has developed the only dedicated Breast Imaging System based on magnetic resonance imaging technology. AMS received U.S. Food and Drug Administration (FDA) clearance to begin marketing activities for the product in February, 1996.

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            ADVANCED NMR SYSTEMS INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF OPERATIONS
                            (Unaudited)

                       Three Months Ended        Nine Months Ended
                            June 30,                 June 30,
                       1996         1995         1996       1995

Revenues:
  System sales         $136,017  $4,333,414   $2,404,621  $6,317,393
  Net patient service
  revenue             6,773,129          --   19,052,622          --
  Management fees and
  other                 146,254          --      531,885          --

    Total revenues    7,055,400   4,333,414   21,989,128   6,317,393

Operating expenses:
  Cost of goods sold    254,538   2,641,760    1,637,225   3,873,489
  Cost of service
   operations         4,216,004          --   11,970,632          --
  Research and
   development          533,017     613,586    1,876,373   2,142,296
  Selling, general
   and administrative 2,646,733     932,412    7,767,088   3,258,708
  Provision for bad
   debt and
   collection costs     603,510          --    1,576,874          --

    Total operating
     expenses         8,253,802   4,187,758   24,828,192   9,274,493

Income (loss) from
  operations        (1,198,402)     145,656  (2,839,064) (2,957,100)

Other income                 --       8,215      126,263     400,465
Interest income          78,839      58,438      221,378     168,576
Interest expense      (524,353)     (3,694)  (1,513,856)    (11,847)

Income (loss) before
  minority interests
  and provision for
  income taxes      (1,643,946)     208,615  (4,005,279) (2,399,906)

Minority interests
  in net income (loss)
  of consolidated
  entities               47,026   (184,546)     (12,630)   (589,532)

Net income (loss) before
  provision for
  income taxes      (1,690,942)     393,161  (3,992,649) (1,810,374)

Provision for
  income taxes         (10,000)          --     (27,983)          --

Net income (loss)  $(1,700,942)    $393,161 $(4,020,632)$(1,810,374)

Net income (loss)
  per share              $(.06)        $.02       $(.13)      $(.08)

Weighted average
  number of shares
  outstanding        30,259,308  23,720,067   30,210,950  23,719,305

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CONTACT: Advanced NMR

Beverly Tkaczenko, 1-800-476-0569