Alliance Imaging Issues 2005 Financial Guidance; Reaffirms Full Year 2004 Guidance Raised on Last Earnings Conference Call.

ANAHEIM, Calif. -- Alliance Imaging, Inc. (NYSE:AIQ), a leading national provider of diagnostic imaging services, announced financial guidance for the first quarter and full year 2005.

Paul S. Viviano, Chairman and Chief Executive Officer, stated, "I am pleased with the progress that Alliance Imaging has made in 2004. The management team has worked diligently to stabilize our business and implement Alliance's company-wide initiatives. In particular, we are encouraged that the implementation of our initiatives has significantly reduced the revenue gap in our core mobile MRI business, driven continued growth of our PET and PET/CT business, and provided for the establishment of approximately 12 new fixed-sites in 2004.

For the full year of 2005, the company expects revenue to range from $427 million to $437 million and Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, adjusted for employment agreement costs and non-cash stock-based compensation expense) to range from $164 million to $170 million.

Alliance expects 2005 capital expenditures to total approximately $85 million to $90 million, with a significant amount of this spending expected to be associated with investments in PET/CT and fixed-site imaging centers.

Earnings per share on a diluted basis, excluding non-cash stock-based compensation expenses and employment agreement costs, is expected to range from $0.44 to $0.51 per share. The earnings per share range reflects the expected effect of the successful completion of the proposed senior subordinated note and bank term loan facility refinancing transactions previously announced on November 30, 2004.

The Company expects to generate $35 million to $40 million in free cash flow in 2005.

For the first quarter of 2005, Alliance is expecting revenue to range from $103 million to $107 million and Adjusted EBITDA to range from $39 million to $41 million.

The Company does not intend to provide quarterly earnings per share guidance.

The Company reaffirms its financial guidance for the fourth quarter and full year 2004. Fourth quarter 2004 revenue is expected to range from $103.1 to $107.1 million. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, adjusted for employment agreement costs, severance costs, and non-cash stock-based compensation expenses) is expected range from $37.7 million to $39.7 million. Full year 2004 guidance is for revenue to range from $428 million to $432 million. Full year 2004 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, adjusted for employment agreement costs, severance costs, and non-cash stock-based compensation expenses) is expected to range from $166 million to $168 million. Alliance currently expects to report results toward the midpoint of the revenue and Adjusted EBITDA guidance ranges for the fourth quarter and full year 2004. The Company's fourth quarter and full year 2004 earnings conference call is currently scheduled for March 9, 2005 at 5:00 pm Eastern time.

Investors are invited to listen to a conference call discussing full year 2005 and first quarter 2005 guidance. The conference call is scheduled for today, December 6, 2004, at 4:00 p.m. Eastern Time. The conference call can be accessed at [phone] (United States) or [phone] (International). Interested parties should call at least 5 minutes prior to the call to register. A telephone replay will be available until March 7, 2005. The telephone replay can be accessed by calling [phone] (United States) or [phone] (International). The conference call replay identification number is 2537967.

Additionally, a live webcast of the call will be available on Alliance Imaging's website at www.allianceimaging.com. Click on Audio Presentations in the Investor Relations section of our website to access the link. A replay of the webcast will be available on our website until March 7, 2005.

Alliance Imaging is a leading national provider of diagnostic imaging services. Alliance provides imaging services primarily to hospitals and other healthcare providers on a shared and full-time service basis, in addition to operating a growing number of fixed-site imaging centers. The Company had 481 diagnostic imaging systems, including 362 MRI systems and 53 PET or PET/CT systems, and over 1,000 clients in 43 states at September 30, 2004.

This press release contains forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For a complete list of risks and uncertainties, please refer to the Risk Factor section of the Company's Form 10-K for the year ended December 31, 2003 filed with the Securities and Exchange Commission.