Alliance Imaging Reports Results for Second Quarter and First Six Months.

ANAHEIM, Calif.--(BUSINESS WIRE)--Aug. 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 second quarter ended June 30, 1998.

Quarterly and Six Months Results

Revenues increased by 146% to $51.2 million for the second quarter ended June 30, 1998 compared with revenues of $20.8 million for the prior year quarter, an increase of $30.4 million. The Company's earnings before interest, taxes, depreciation and amortization ("EBITDA") increased to $21.9 million in the second quarter compared to $9.6 million in 1997's second quarter. The increase in both revenue and EBITDA primarily reflect the acquisitions of Mobile Technology Inc. ("MTI") (acquired March 12, 1998) and Medical Diagnostics, Inc. ("MDI") (acquired May 19, 1998), as well as continued growth in the continuing Alliance Imaging, Inc. operations. The MTI and MDI acquisitions accounted for $21.7 million of the increased revenue in the quarter.

For the six months ended June 30, 1998, revenues were $82.5 million, representing a 107% increase over 1997 six month revenues of $39.9 million. The Company's EBITDA for the six month period ended June 30, 1998 was $34.1 million compared to $18.1 million in the 1997 period. The MTI and MDI acquisitions accounted for $25.7 million of the $42.6 million increase in revenues for the six months.

A significant factor contributing to this quarter's results was an increase in the Company's MRI business as evidenced by a 140% increase in total scans performed. During the second quarter, approximately 108,000 MRI scans were performed compared to 45,000 in the second quarter of 1997.

The Company further reported that 20 net MRI systems were added during the 1998 second quarter, 11 as a result of the acquisition of MDI.

Acquisition

On May 19, 1998, the Company acquired MDI, a subsidiary of U.S. Diagnostic, Inc., in a transaction accounted for as a purchase. The Company included the operations of MDI in its consolidated financial statements from the date of acquisition. This acquisition added 11 MRI systems to the Company's equipment fleet.

Alliance Imaging, Inc., 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, Inc., via facsimile call 1-800-PRO-INFO and dial client code "SCAN".

                        ALLIANCE IMAGING, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)

                                      Three Months Ended June 30,
                                        1998                1997

Revenues                          $ 51,243,000        $ 20,805,000

Cost and expenses:
 Operating expenses,
  excluding depreciation            24,493,000           9,134,000
 Depreciation expense                6,716,000           3,659,000
 Selling, general and
  administrative expenses            4,760,000           2,093,000
 Transaction related
  costs                                 44,000                --
 Amortization expense,
  primarily goodwill                 1,848,000             594,000
 Interest expense, net
  of interest income                 8,955,000           1,624,000

Total costs
 and expenses                       46,816,000          17,104,000

Income before income
 taxes and extraordinary
 gain (loss)                         4,427,000           3,701,000
Provision for
 income taxes                        2,127,000           1,290,000
Income before
 extraordinary gain (loss)           2,300,000           2,411,000
Extraordinary gain (loss),
 net of taxes                             --                  --
Net income                           2,300,000           2,411,000
Less:  Preferred stock
 dividends and financing
 fee accretion                        (541,000)               --
Add:  Excess of carrying
 amount of preferred stock
 repurchased over
 consideration paid                       --                  --
Income (loss) applicable
 to common stock                  $  1,759,000        $  2,411,000

Earnings per common share:
Income before extraordinary
 gain (loss)                      $       0.43        $       0.20
Extraordinary gain (loss),
 net of taxes                             --                  --
Net income (loss)
 per common share                 $       0.43        $       0.20

Earnings per common share - assuming dilution:
Income before
 extraordinary gain (loss)        $       0.41        $       0.16
Extraordinary gain (loss),
 net of taxes                             --                  --
Net income (loss) per
 common share
 -assuming dilution               $       0.41        $       0.22


ALLIANCE IMAGING, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)

                                     Six Months Ended June 30,
                                      1998               1997

Revenues                         $ 82,484,000        $ 39,911,000

Cost and expenses:
 Operating expenses,
  excluding depreciation           39,728,000          17,815,000
 Depreciation expense              11,687,000           7,144,000
 Selling, general and
  administrative expenses           7,796,000           3,990,000
 Transaction related
  costs                               859,000                --
 Amortization expense,
  primarily goodwill                2,658,000           1,165,000
 Interest expense, net
  of interest income               15,662,000           3,557,000
Total costs
 and expenses                      78,390,000          33,671,000

Income before income
 taxes and extraordinary
 gain (loss)                        4,094,000           6,240,000
Provision for
 income taxes                       2,127,000           2,125,000
Income before
 extraordinary gain (loss)          1,967,000           4,115,000
Extraordinary gain (loss),
 net of taxes                      (1,312,000)          1,332,000
Net income                            655,000           5,447,000
Less:  Preferred stock
 dividends and financing
 fee accretion                     (1,051,000)               --
Add:  Excess of carrying
 amount of preferred stock
 repurchased over
 consideration paid                      --             1,906,000
Income (loss) applicable
 to common stock                 $   (396,000)       $  7,353,000

Earnings per common share:
Income before extraordinary
 gain (loss)                     $       0.22        $       0.53
Extraordinary gain (loss),
 net of taxes                           (0.32)               0.12
Net income (loss)
 per common share                $      (0.10)       $       0.65

Earnings per common share - assuming dilution:
Income before
 extraordinary gain (loss)       $       0.22        $       0.45
Extraordinary gain (loss),
 net of taxes                           (0.31)               0.10
Net income (loss) per
 common share
 -assuming dilution              $      (0.09)       $       0.55


                        ALLIANCE IMAGING, INC.
                CONSOLIDATED BALANCE SHEET INFORMATION


                                           June 30,      December 31,
                                             1998            1997
                                         (Unaudited)

Cash and short-term investments         $  4,677,000    $ 10,798,000
Receivables and other current assets      36,824,000      16,863,000
Equipment, net                           165,196,000     112,213,000
Total assets                             371,813,000     193,655,000
Long-term debt                           384,004,000     227,874,000
Total liabilities                        439,292,000     261,856,000

CONTACT: Alliance Imaging Inc., Anaheim

Kenneth S. Ord, 714/688-7100

www.allianceimaging.com

or

The Financial Relations Board, 310/442-0599

Karen Taylor (general information)

Michaelle Burstin (media contact)