Alliance Imaging Issues 2007 Financial Guidance.

ANAHEIM, Calif. -- Alliance Imaging, Inc. (NYSE:AIQ), a leading national provider of diagnostic imaging services, announced financial guidance for full year 2007.

Full Year 2007 Guidance

For full year 2007, the company expects revenue to range from $431 million to $443 million and Adjusted EBITDA (earnings before interest expense, net of interest income; income taxes; depreciation expense; amortization expense; minority interest expense; non-cash share-based compensation; a maximum of $750,000 of severance and related costs in each fiscal year; and other non-cash charges) to range from $148 million to $156 million. Full year 2007 revenue and Adjusted EBITDA are expected to be negatively impacted by approximately $14 million due to Medicare reimbursement reductions related to the Deficit Reduction Act of 2005 ("DRA") and the Medicare Part B HOPPS reimbursement rate reduction for PET and PET/CT imaging procedures which are effective for services furnished on or after January 1, 2007.

Paul S. Viviano, Chairman of the Board and Chief Executive Officer, stated, "While 2006 proved to be a year of very strong performance, the DRA and other regulatory changes will significantly impact Alliance for 2007 and beyond. As our industry feels the impact of these changes, Alliance is uniquely positioned to withstand the many challenges and will strategically evaluate opportunities in the marketplace which will positively impact our future performance."

Alliance expects 2007 cash capital expenditures to total approximately $75 million to $85 million. The 2007 cash capital expenditure guidance includes 10 to 15 fixed-site openings in 2007, a portion of which are planned to replace mobile service to the Company's current customers. In 2007, Alliance expects to open one to three radiation therapy centers.

In 2007, the Company expects to decrease long-term debt, net of the change in cash and cash equivalents, from $20 million to $30 million.

The Company's income tax rate for 2007 is expected to total approximately 42% of pretax income.

Alliance's weighted average shares of common stock and common stock equivalents outstanding for 2007 is expected to be approximately 50.5 million shares.

Full Year 2006 Guidance

The Company reaffirms its revenue and Adjusted EBITDA guidance for full year 2006. Full year 2006 revenue is expected to range from $452.5 million to $455.5 million and Adjusted EBITDA is expected to range from $168.5 million to $171.0 million.

In addition, Alliance is revising the following 2006 guidance ranges. Capital expenditures are now expected to range between $70 million to $75 million. The Company now expects to open 10 to 11 new fixed-sites during 2006. The reduction in long-term debt, net of the change in cash and cash equivalents, is now expected to range from $50 million to $55 million.

Conference Call

Investors and all others are invited to listen to a conference call discussing full year 2007 guidance. The conference call is scheduled for Tuesday, December 19, 2006, at 1:00 p.m. Eastern Time. The call will be broadcast live on the Internet and can be accessed by visiting the Company's website at www.allianceimaging.com. Click on Audio Presentations in the Investor Relations section of the website to access the link. The conference call can also be accessed at 888-247-2250 (United States) or 973-935-8452 (International). Interested parties should call at least five minutes prior to the conference call to register. A replay of the call can be accessed until March 19, 2007, by visiting the Company's website or by calling 877-519-4471 (United States) or 973-341-3080 (International). The conference call identification number is 8226234.

About Alliance Imaging

Alliance Imaging is a leading national provider of shared-service and fixed-site diagnostic imaging services, based upon annual revenue and number of diagnostic imaging systems deployed. Alliance provides imaging and therapeutic 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 494 diagnostic imaging systems, including 334 MRI systems and 71 PET or PET/CT systems, and served over 1,000 clients in 43 states at September 30, 2006. Of these 494 diagnostic imaging systems, 74 were located in fixed-sites, which includes systems installed in hospitals or other buildings on or near hospital campuses, medical groups' offices, or medical buildings and retail sites.

Forward-Looking Statements

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-Q for the quarter and nine months ended September 30, 2006, filed with the Securities and Exchange Commission.

ALLIANCE IMAGING, INC. ADJUSTED EBITDA

EBITDA represents earnings before interest expense, net of interest income; income taxes; depreciation expense; and amortization expense. Adjusted EBITDA represents EBITDA adjusted for non-cash share-based compensation, minority interest expense, a maximum of $750,000 of severance and related costs in each fiscal year, and other non-cash charges. Adjusted EBITDA is not a presentation made in accordance with accounting principles generally accepted in the United States of America. Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Adjusted EBITDA is included because the Company's amended credit agreement uses a measure similar to this to calculate the Company's compliance with covenants such as interest coverage ratio (as defined in Section 7.6A of the Company's amended credit agreement) and consolidated leverage ratio (as defined in Section 7.6B of the Company's amended credit agreement) and consolidated senior leverage ratio (as defined in Section 7.6J of the Company's amended credit agreement). The Company's failure to comply with these covenants could result in the amounts borrowed under these instruments, together with accrued interest and fees, becoming immediately due and payable. If the Company is not able to refinance this debt when it becomes due, the Company could become subject to bankruptcy proceedings. While Adjusted EBITDA is used to measure the Company's compliance with its debt covenants, it is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The calculation of Adjusted EBITDA in accordance with the Company's amended credit agreement is shown below:

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