Alliance Imaging Reaffirms Commitment to PET Strategy After CMS Reimbursement Announcement.

Business Editors & Health/Medical Writers

ANAHEIM, Calif.--(BUSINESS WIRE)--Nov. 30, 2001

Alliance Imaging Inc. (NYSE:AIQ), a leading national provider of outsourced diagnostic imaging services, today reaffirmed its commitment to provide Positron Emission Tomography (PET) services after reviewing the Centers for Medicare and Medicaid Services (CMS) announcement regarding PET reimbursement for 2002.

CMS announced yesterday that the Ambulatory Payment Classification (APC) for PET reimbursement in 2002 will be $1,368.13 per procedure as opposed to the $841.94 rate that CMS had originally proposed, but down from the current reimbursement rate of $2,331.18.

Richard N. Zehner, chairman of the board and chief executive officer stated: "The new APC reimbursement rate for PET makes the delivery of this technology on a shared-service basis ideal. We feel this is a proven technology that many hospitals want and need to provide in order to offer a full spectrum of cancer services.

"However, most hospitals probably will not have enough volume to justify purchasing a PET system, particularly in light of the lower reimbursement announced yesterday. The reimbursement rate still falls in a range where Alliance can provide the service profitably by sharing a system with several hospitals or other health-care providers. We clearly think this is an area where we add value and plan to continue to expand our PET business."

Alliance expects PET revenue to be approximately 2.5% of its consolidated revenue this year and that this will grow as a percentage of consolidated revenue in 2002. The company has not adjusted its revenue forecast for either 2001 or 2002 because of the CMS announcement.

Alliance Imaging is a leading national provider of outsourced diagnostic imaging services. Alliance provides imaging and therapeutic services, primarily to hospitals and other health-care providers on a mobile, shared-service basis. The company had 404 diagnostic imaging and therapeutic systems, including 335 MRI systems and 1,283 clients in 42 states at Sept. 30, 2001.

This news release contains forward-looking statements, which are based on the company's current expectations, forecasts and assumptions. Forward-looking statements involve risks and uncertainties which could cause actual outcomes and results to differ materially from the company's expectations, forecasts and assumptions. These risks and uncertainties include factors affecting the company's leverage, including fluctuations in interest rates, the company's ability to incur financing, the effect of operating and financial restrictions in the company's debt instruments, the accuracy of the company's estimates regarding capital requirements, the effect of intense levels of competition in the company's industry, changes in the health-care regulatory and reimbursement environment, the company's ability to keep pace with technological developments within its industry, and other risks and uncertainties, including those enumerated and described in the company's filings with the Securities and Exchange Commission, which filings are available on the SEC's Web site at www.sec.gov. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.