Alliance Imaging Reports Results for First Quarter 1998.

ANAHEIM, Calif.--(BUSINESS WIRE)--May 13, 1998--Alliance Imaging Inc., a leading provider of hospital-based fixed-site and mobile magnetic resonance imaging ("MRI") and computed tomography ("CT") services, announced results for its first quarter ended March 31, 1998.

Quarterly Results

Revenues increased by 63.4 percent to $31.2 million, with the acquisition of Mobile Technology Inc. ("MTI") accounting for $4.0 million of the increase, for the first quarter ended March 31, 1998 compared with revenues of $19.1 million for the prior-year quarter.

The company's earnings before interest, taxes, depreciation, and amortization ("EBITDA") increased to $12.2 million in the first quarter compared with $8.5 million in 1997's first quarter.

Excluding one-time costs associated with the MTI acquisition, the company's EBITDA was $13.0 million. A significant factor contributing to this quarter's results was an increase in the company's MRI business as evidenced by a 39 percent increase in total scans performed (excluding the MTI acquisition). During the first quarter, approximately 55,900 MRI scans were performed compared with 40,200 in the first quarter of 1997.

The company further reported that 76 net MRI systems were added during 1998 first quarter, 68 as a result of the MTI acquisition.

Acquisitions

On March 12, 1998, the company acquired MTI, which management believes is the second-largest provider of mobile MRI services in the United States, in a transaction accounted for as a purchase. The company included the operations of MTI in its consolidated financial statements from the date of acquisition.

This acquisition added 68 MRI systems operating in 31 states, 3 CT systems, 9 lithotripsy systems and 3 brachytherapy systems to the company's equipment fleet.

Also on March 12, 1998, the company announced it had signed a definitive agreement to acquire the medical diagnostic imaging assets of American Shared Hospital Services ("American Shared") for approximately $13.6 million in cash and assumption of approximately $26.1 million of debt in a transaction that is expected to be consummated by July 15, 1998.

The proposed transaction is subject to certain conditions including receipt of regulatory approvals and approval by the shareholders of American Shared.

On March 31, 1998, the company announced it had signed a definitive agreement with U.S. Diagnostic Inc., to acquire its subsidiary Medical Diagnostics Inc. ("MDI"), a provider of diagnostic imaging services. The transaction is valued at approximately $35.5 million (including assumption of approximately $5.7 million of indebtedness) and the company intends to finance the cash portion of the transaction with bank financing. The transaction is expected to close by the end of May 1998.

Alliance Imaging, an affiliate of Apollo Management L.P., is a leading provider of comprehensive diagnostic imaging services to hospitals and other health care providers. Services are provided on either a mobile, shared-user basis or on a full-time single-user basis.

For more information about Alliance Imaging via facsimile, call 800/PRO-INFO and dial client code "SCAN". -0-

                         ALLIANCE IMAGING INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              Three Months Ended March 31, 1998 and 1997
                              (unaudited)

                                               Three Months Ended
                                             March 31,     March 31,
                                               1998          1997

Revenues                                   $ 31,241,000  $ 19,106,000
Costs and expenses:
   Operating expenses, excluding
    depreciation                             15,235,000     8,681,000
   Depreciation expense                       4,971,000     3,485,000
   Selling, general and administrative
    expenses                                  3,036,000     1,897,000
   Transaction-related costs                    815,000           ---
   Amortization expense, primarily
    goodwill                                    810,000       571,000
   Interest expense, net of interest
    income                                    6,707,000     1,933,000
Total costs and expenses                     31,574,000    16,567,000
Income (loss) before income taxes and
   extraordinary gain (loss)                  (333,000)     2,539,000
Provision for income taxes                         ---       835,000
Income (loss) before extraordinary
   gain (loss)                                (333,000)     1,704,000
Extraordinary gain (loss), net of taxes     (1,312,000)     1,332,000

Net income (loss)                           (1,645,000)     3,036,000
Less:  Preferred stock dividends and
   financing fee accretion                     510,000            ---
Add:  Excess of carrying amount of
   preferred stock repurchased over
   consideration paid                              ---     1,906,000

Income (loss) applicable to common stock   $(2,155,000)  $  4,942,000

Earnings per common share:
   Income (loss) before extraordinary
     gain (loss)                           $     (0.21)  $       0.33
   Extraordinary gain (loss), net of taxes       (0.32)          0.12
   Net income (loss) per common share      $     (0.53)  $       0.45
Earnings per common share - assuming dilution:
   Income (loss) before extraordinary
    gain (loss)                            $     (0.21)  $       0.30
   Extraordinary gain (loss), net of
    taxes                                        (0.32)          0.11
   Net income (loss) per common share
      - assuming dilution                  $     (0.53)  $       0.41
-0-
                        ALLIANCE IMAGING INC.
                CONSOLIDATED BALANCE SHEET INFORMATION

                                             March 31,     Dec. 31,
                                               1998          1997
                                            (Unaudited)

Cash and short-term investments            $  7,200,000  $ 10,798,000
Receivables and other current assets         29,043,000    16,863,000
Equipment, net                              149,103,000   112,213,000

Total assets                                323,632,000   193,655,000

Long-term debt                              339,886,000   227,874,000

Total liabilities                           393,465,000   261,856,000

CONTACT: Alliance Imaging Inc., Costa Mesa 

Kenneth S. Ord, 714/688-7100

www.allianceimaging.com

or

The Financial Relations Board, 310/442-0599

Karen Taylor, General Information

Moira Conlan, Analyst Contact

Steve Seiler, Media Contact