FONAR Sells UPRIGHT MRI To Las Vegas Imaging Center.

MELVILLE, N.Y. -- FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning(TM), announced today that it sold a FONAR UPRIGHT(TM) MRI to Axiom Imaging of Las Vegas, Nevada. The scanner is expected to be installed in June of this year.

Reed Davis and Dan Mohr, Co-Managing Directors of Axiom Imaging of Las Vegas, are excited about bringing Upright MRI technology to the city of Las Vegas. Mr. Mohr said, "From a business perspective, it is logical to be in one of the most dynamic and fastest growing metropolitan areas of the United States. We are confident that Axiom Imaging will experience tremendous success here in Las Vegas."

"Our decision-making process was very thorough," added Mr. Davis. "Mr. Mohr and I conducted an extensive two-year analysis of the Las Vegas market. All our studies and data overwhelmingly supported our decision to bring this technology to our community here in Las Vegas."

"Technologically, we view the FONAR UPRIGHT(TM) MRI as the most advanced, and yet most practical, modality in the marketplace. We view Dr. Damadian as the first pioneer in his field and we have tremendous faith in his foresight. In fact, I can remember seeing his first scanner, that made the world's first MRI scan, 'Indomitable,' at the Smithsonian Institute in Washington D.C., years ago," said Mr. Davis.

"Years ago, I required spine surgery and had several recumbent MRI scans," added Mr. Davis. "While being scanned, I questioned the value of being scanned lying down, because my back didn't hurt when I was lying down. I strongly suspected that a recumbent view of my spine would not give a complete picture of my condition. To me, it was obvious. After some research, I discovered the FONAR UPRIGHT(TM) MRI. Many physicians, including the orthopedic surgeons within our own organization, now recognize the obvious advantages of Upright(TM) Imaging."

Mr. Mohr added, "It has certainly been a perk, that our relationship with FONAR, from Sales to Engineering and Site Planning, has been most pleasant. It is encouraging to work with an organization that embraces the values of its customers and services its customers in a way that lends itself to successful, long term relationships."

Raymond V. Damadian, president and chairman of FONAR, said, "Las Vegas is a moment of history for FONAR, It was there in Las Vegas in 1980 that FONAR unveiled the world's first commercial MRI, the QED 80, at the 1980 annual meeting of the American Roentgen Ray Society. Later that same year we installed the world's first commercial MRI. Since then, we have installed hundreds of scanners the world over, bringing us to where we are today, 26 years later, with the most exciting MRI product on the market - the FONAR UPRIGHT(TM) MRI."

Dr. Damadian explained. "Today FONAR is in a very unique and advantageous position. We make the only MRI scanner that can examine any part of the body under its normal functional load. Medicine, thanks to the availability of the full range of modern technology, is advancing on all fronts into a new era, the ability to evaluate the body and its vital organs while they are 'in action'. In today's world, evaluating vital body parts statically is obsolete. We no longer, for example, evaluate an EKG of the heart with the patient lying statically in bed. We want his EKG evaluation after a treadmill exercise so his actual heart function and cardiac capacity can be accurately assessed. Likewise for the spine. Like the heart, it too is a dynamic organ. Failing to examine it dynamically has the genuine risk of making the wrong assessment and the wrong diagnosis, with the risk that the wrong surgery is then performed. Like the exercise EKG, the exercise and position evaluation of the spine is no longer an option. It is a necessity. Spine surgeons, for example, are quick to recognize that observing the patient's spine in its normal, routine positions, including normal weight-bearing postures, bending, flexing and extending, is crucial to an accurate diagnosis of the spine. If a patient complains about lower back pain only when he is standing, the surgeon cannot be expected to proceed with surgery on the basis of a lie-down only MRI exam. We are seeing case after case where lie-down MRIs are missing the pathology. If a patient's problem can only be seen or fully understood with the patient upright, the FONAR UPRIGHT(TM) MRI is going to be the only MRI that is going to achieve the correct diagnosis."

"I know the medical community understands it needs this product," said Dr. Damadian. "The surgeons have been the first to catch on because they understand that they can't fix a problem that they can't see. Spine surgeons do not want unsuccessful outcomes, and they know without qualification that the key to successful outcomes is achieving the correct diagnosis. They want to do the very best for their patients. In fact we're seeing about as many surgeons buying FONAR UPRIGHT(TM) MRIs as radiologists. That's a paradigm shift that reflects the critical importance of the FONAR UPRIGHT(TM) MRI to the surgeon."

About FONAR

FONAR(R) was incorporated in 1978, making it the first, oldest and most experienced MRI manufacturer in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. Since its inception, FONAR has installed hundreds of MRI scanners worldwide. Their stellar product line includes the FONAR UPRIGHT(TM) MRI (also known as the Stand-Up(TM) MRI), the only whole-body MRI that performs Position(TM) imaging (pMRI(TM)) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT(TM) MRI often sees the patient's problem that other scanners cannot because they are lie-down only. With nearly one half million patients scanned, the patient-friendly FONAR UPRIGHT(TM) MRI has a near zero claustrophobic rejection rate by patients. A radiologist said, "FONAR UPRIGHT(TM) MRI - No More Claustrophobia - The Tunnel Is Gone." As another FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while they watch a 42" flat screen TV. FONAR's latest MRI scanner is the FONAR 360, a room-size recumbent scanner that optimizes openness while facilitating physician access to the patient. FONAR is headquartered on Long Island, New York, and has approximately 500 employees.

The Inventor of MR Scanning(TM), True Flow(TM) MRI, Stand-Up(TM) MRI, FONAR UPRIGHT(TM) MRI, Position(TM) MRI, PMRI(TM) and The Proof is in the Picture(TM) are trademarks of FONAR(R) Corporation.

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 filings with the Securities and Exchange Commission.