Alliance Imaging Reports Results for the Quarter and Year Ended Dec. 31, 1998.

ANAHEIM, Calif.--(BUSINESS WIRE)--March 24, 1999--Alliance Imaging Inc. ("Alliance" or the "company"), a leading provider of hospital-based fixed site and mobile magnetic resonance imaging (MRI) and computed tomography (CT) services, announced results for its fourth quarter and year ended Dec. 31, 1998.

Quarterly and Annual Results

Revenues increased by 151% to $60.7 million for the fourth quarter ended Dec. 31, 1998, compared with revenues of $24.2 million for the prior year quarter, an increase of $36.5 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA), excluding one-time costs associated with acquisitions, increased to $24.1 million in the fourth quarter compared with $10.1 million, excluding recapitalization merger costs, in 1997's fourth quarter.

The significant factor contributing to this quarter's results was a solid increase in the company's MRI business as evidenced by a 139% increase in total scans performed. During the fourth quarter (excluding the acquired imaging businesses of American Shared Hospital Services, which were acquired on Nov. 13, 1998 -- "American Shared"), approximately 120,921 scans were performed compared with 50,700 in the fourth quarter of 1997.

The increases in revenue, EBITDA and scan volume primarily reflect the acquisitions of Mobile Technology Inc. (MTI), Medical Diagnostics Inc. (MDI) and American Shared, as well as continued growth in Alliance's own operations. Excluding American Shared, the company's revenue on a pro forma basis grew to $56.6 million from $50.1 million, an increase of 13%. American Shared added $4.1 million to the company's revenue for the quarter.

For the year ended Dec. 31, 1998, revenues were $199.4 million, a 131% increase compared with 1997 revenues of $86.5 million. For the year ended Dec. 31, 1998, EBITDA was $83.1 million (excluding one-time costs associated with acquisitions) compared with $38.6 million in 1997 (excluding recapitalization merger costs). On a pro forma basis, excluding American Shared, the company's revenues for the year increased to $218.4 million from $191.1 million in 1997.

The company's MRI scan volume, excluding American Shared, increased 124% to 411,609 for the year ended Dec. 31, 1998, from 183,400 in the prior year.

The company further reported that 123 net MRI systems were added during 1998 (106 as a result of the MTI, MDI and American Shared acquisitions).

Acquisitions

On March 12, 1998, the company acquired MTI, which management believes was the second largest provider of mobile MRI services in the United States. 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.

On May 19, 1998, the company acquired MDI, a subsidiary of U.S. Diagnostic Inc., which added 10 MRI systems to the company's equipment fleet.

On Nov. 13, 1998, the company acquired all of the equity interests in two operating subsidiaries of American Shared. The acquisition added 28 MRI systems, among other pieces of equipment, to the company's 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 800/PRO-INFO and dial client code "SCAN." -0-

                         ALLIANCE IMAGING INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           (Dollars in thousands, except per-share amounts)

                              Three Months Ended  Twelve Months Ended
                                     Dec. 31,            Dec. 31,
                                 1998      1997      1998      1997

Revenues                      $ 60,688  $ 24,189  $199,401  $ 86,474
Cost and expenses:
Operating expenses,
 excluding depreciation         30,363    11,498    97,187    38,997
Depreciation expense             8,050     4,771    26,961    15,993
Selling, general and
 administrative expenses         6,220     2,606    19,095     8,857
Transaction related costs        1,460        --     2,818        --
Amortization expense,
 primarily goodwill              3,265       659     8,010     2,426
Interest expense, net
 of interest income             10,347     2,493    35,488     7,808
Recapitalization merger costs       --    16,350        --    16,350
Total costs and expenses        59,705    38,377   189,559    90,431

Income (loss) before income
 taxes and extraordinary
 gain (loss)                       983   (14,188)    9,842    (3,957)
Provision (benefit)
 for income taxes                  435    (1,780)    4,973     1,700
Income (loss) before
 extraordinary gain (loss)         548   (12,408)    4,869    (5,657)
Extraordinary gain (loss),
 net of taxes                       --       517    (2,271)    1,849
Net income (loss)                  548   (11,891)    2,598    (3,808)
Less: Preferred stock
 dividends and financing
 fee accretion                     577       240     2,186       626
Add: Excess of carrying
 amount of preferred stock
 repurchased over
 consideration paid                 --        --        --     1,906
Income (loss) applicable
 to common stock               $   (29) $(12,131)  $   412   $(2,528)

Earnings per common share:
Income (loss) before
 extraordinary gain (loss)     $ (0.01) $  (1.25)  $  0.66   $ (0.41)
Extraordinary gain (loss),
 net of taxes                       --      0.05     (0.56)     0.17
Net income (loss) per
 common share                  $ (0.01) $  (1.20)  $  0.10   $ (0.24)

Earnings per common share
 -- assuming dilution
Income (loss) before
 extraordinary gain (loss)     $ (0.01) $  (1.25)  $ 0.63    $ (0.41)
Extraordinary gain (loss),
 net of taxes                       --      0.05    (0.53)      0.17
Net income (loss) per
 common share -- assuming
 dilution                      $ (0.01) $  (1.20)  $ 0.10    $ (0.24)


                         ALLIANCE IMAGING INC.
                CONSOLIDATED BALANCE SHEET INFORMATION
                        (Dollars in thousands)

                                       Dec. 31, 1998    Dec. 31, 1997

Cash and short-term investments          $  1,681         $ 10,798
Receivables and other current assets       50,141           16,863
Equipment, net                            194,263          112,213
Total assets                              457,308          193,655
Long-term debt                            431,247          227,874
Total liabilities                         552,845          261,856