FONAR Announces Sale of Its Stand-Up MRI to the University of Aberdeen in Scotland; Company Views Sale as Major Strategic Step.

Business Editors/Health & Medical Writers

MELVILLE, N.Y.--(BW HealthWire)--June 11, 2001

FONAR Corporation (NASDAQ-FONR), The Patient-Friendly(TM) MRI Company, announced today the sale of Indomitable(TM), its new Stand-Up MRI(TM), to the University of Aberdeen in Aberdeen, Scotland.

"We're excited about this sale to the University of Aberdeen," said Dr. Raymond Damadian, President and Chairman of FONAR Corporation. "The University of Aberdeen has a well-deserved reputation for being one of the top centers in the world for the development of new medical imaging technology. They are the creators of the spin-warp imaging technique used on all MRI machines. It was the method that made phase-coding practical as a means for locating anatomic structures and tissues within the body so that pictures could be made efficiently."

"In my view," said Dr. Damadian, "the University of Aberdeen knows better than anyone the merits of a new MRI imaging technology and they have chosen FONAR. Two weeks ago the University of Aberdeen was designated by the European Union (EU) as one of Europe's centers of excellence in medical imaging and, funded by the EU, to be one of Europe's principal training centers for the teaching and dissemination of new imaging technologies throughout Europe. The pioneering of Positional Imaging(TM) using FONAR's Stand-Up MRI(TM) will be a centerpiece in that program."

Francis W. Smith, M.D. and Professor Malcolm Pope, Ph.D. were the principals on the grant awarded to the University of Aberdeen by the Scottish government for the purchase of FONAR's Stand-Up MRI(TM), and for the pioneering of Positional Imaging(TM) in the practice of medicine. Dr. Smith said, "We consider it an extraordinary occasion to be able to combine the unique talents of Dr. Damadian and FONAR with the legacy of the University of Aberdeen for implementing new medical technologies. Combining Dr. Damadian's great original vision in the genesis of MRI and FONAR's landmark accomplishments of the first Open MRI technology, the first high-field Open MRI, the first MRI Operating Room and now the first Stand-Up or Positional MRI, with the tradition and expertise of the University of Aberdeen for implementing new medical technologies, will prove to be one of the most outstanding and fruitful collaborations in medical history.

Dr. Smith continued, "In February 2001, the University of Aberdeen received the Queen's Anniversary Prize acknowledging the University's 30-year history in the pioneering of MRI, PET scanning and the nuclear Anger camera. In addition to the superb image quality of FONAR's Stand-Up MRI(TM), this scanner, because of its unique 3-dimensional positioning system, allows us to position the patient in any position of our choosing and snap a picture in the position that causes his symptoms. This will enable us to exploit the MRI's exceptional visualizing powers to directly see, in detail, the source of the patient's problem. For the first time in medical history we are going to be able to put the patient virtually in his position of pain and snap a picture.

"Positional Imaging(TM)," said Dr. Smith, "begins a whole new era in the practice of medicine. I expect that within five years anyone who performs only a recumbent MRI of the spine will be deemed to be negligent."

Dr. Smith is himself a pioneer in the development of MRI technology, having presided over the first clinical trials of 1,000 patients studied in an MRI scanner.

Professor Malcolm Pope is the co-principal investigator with Dr. Smith on the grant from the Scottish Higher Education Funding Council that funded the purchase of the FONAR's Stand-Up MRI(TM). He dedicated his Doctorate in Physics to the study of the biomechanics of the spine. He is a member of the Department of Biomedical Physics and Bioengineering at the University of Aberdeen and a world authority on the biomechanics of the spine. Professor Pope is a Deputy Editor of the professional medical journal "Spine" published by Lippincott, Williams & Wilkins. He said, "I'm interested primarily in the spine. FONAR's Stand-Up MRI(TM) provides us a unique opportunity to make major breakthroughs in our understanding of the spine and to provide better diagnosis for patients. The ability to be able to compare images of an individual in different postures is a wonderful utility. Even the first preliminary slides of Stand-Up MRI(TM) scans have been so exciting that we're going to be presenting them at an international meeting in Edinburgh in June."

Professor Pope continued, "There is a great deal of interest and excitement among our colleagues here at the university, even among local politicians. Though we haven't promoted the scanner as yet, we've had inquiries from all over the UK and Europe. When asked his opinion of the quality of FONAR's 0.6 Tesla Stand-Up MRI images, Professor Pope replied, "absolutely excellent."

Be sure to visit FONAR's Web site for Company product and investor information. www.FONAR.com

This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.