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HEALTH IMAGES, INC. ANNOUNCES 1992 RESULTS

 ATLANTA, Feb. 23 /PRNewswire/ -- Health Images, Inc. (NYSE: HII) today announced fiscal year 1992 net income of $6,487,400 or $0.53 per share on net revenue of $69,926,500 as compared to fiscal year 1991 net income of $5,914,400 or $0.49 on net revenue of $61,151,000.
 Primary earnings per share were calculated on 12,299,400 and 12,127,700 weighted average common share and net dilutive common share equivalents outstanding for the 1992 and 1991 periods respectively.
 Robert D. Carl III, Health Images's president, chairman and chief executive officer, stated: "We are happy with 1992 results. Operating income increased by an acceptable 15.6 percent in a difficult year. Increases in net income were constrained by our equity investment in National Diagnostic Systems, Inc. (NDS) and a higher income tax rate. NDS is in the final stages of completing its proprietary PROMIS system for prospective review and outcomes analysis for diagnostic imaging. Our higher tax rate reflects increased non-deductible amortization of goodwill relating to acquisitions and the expiration of the research and development tax credit.
 "Intense industry-wide competitive conditions and declining reimbursement trends continue and are reinforced by the Clinton Administration's efforts to contain health care costs. Accordingly, Health Images will be unable to achieve previous 1993 earnings targets.
 "I expect 1993 earnings to be similar to those recorded in 1992. Although declining reimbursements are a negative factor for 1993, I believe that Health Images will ultimately benefit from the Clinton health care agenda. I predict that 1993 will finally be the year when effective national legislation eliminating physician self referral will be enacted. Lower reimbursements are nothing new to us. They hurt Health Images, but with our low cost operations, hurt our competitors more. We have, even at lower reimbursements, large economies of scale and operating leverage. Our problem has long been obtaining sufficient growth in unit volume to offset declines in reimbursements. If effective controls are placed on physician self referral, we can only benefit. Long ago we saw the need to market to payers as well as to physicians, and we believe that we now have more expertise and opportunities to market to managed care plans. With expected increase in unit volumes derived from reduced competition from physician self referral activities and from greater success in marketing to managed care payers, Health Images should ultimately be able to achieve renewed earnings growth."
 Reflecting management's and the board of directors' confidence in the future of Health Images, the company announced today an additional treasury stock repurchase program of up to 500,000 shares of the company's common stock. This program will take effect following the completion of the company's current treasury stock program which calls for the repurchase of up to 1 million shares. As of this date the company has repurchased under the current program 865,000 shares out of the total 1 million shares authorized.
 Health Images, Inc. operates 40 imaging centers in the United States and United Kingdom, and one radiation oncology center. The company also manufactures MRI scanners, provides equipment maintenance services for major medical diagnostic imaging equipment, constructs medical facilities and leases mobile MRI equipment.
 HEALTH IMAGES OPERATING RESULTS
 Year ended Dec. 31
 1992 1991 Inc. (dec.) Pct. chg.
 Net patient service
 revenue $62,182,600 $52,026,100 $10,156,500 19.5
 Engineering revenue 5,786,200 6,411,000 (624,800) (9.8)
 Other income 1,957,700 2,713,900 (756,200) (27.9)
 Total net revenue 69,926,500 61,151,000 8,775,500 14.4
 Operating costs 48,923,700 42,769,300 6,154,400 14.4
 Prov. for bad debt 2,202,100 1,896,200 305,900 16.1
 General and admin.
 expenses 6,859,400 6,159,400 700,000 11.4
 Total oper. expenses 57,985,200 50,824,900 7,160,300 14.1
 Income from opers. 11,941,300 10,326,100 1,615,200 15.6
 Equity in loss of
 affiliates (239,000) --- (239,000) ---
 Interest income 1,162,100 1,538,700 (376,600) (24.5)
 Interest expense (1,927,200) (1,852,500) 74,700 4.0
 Income bef. prov. for
 income taxes and
 minority interest 10,937,200 10,012,300 924,900 9.2
 Minority int. in income
 of consolidated
 entities 379,300 621,000 (241,700) (38.9)
 Income before income
 taxes 10,557,900 9,391,300 1,166,600 12.4
 Provision for
 income taxes 4,070,500 3,476,900 593,600 17.1
 Net income $ 6,487,400 $ 5,914,400 $ 573,000 9.7
 Net income per share
 (primary) $0.53 $0.49 $0.04 8.1
 Net income per share
 (fully diluted) $0.53 $0.49 $0.04 8.1
 Primary common shares and
 net dilutive common share
 equivalents 12,299,400 12,127,700 171,700 1.4
 Fully diluted common shares
 and net dilutive common
 shares equivalents 12,299,400 12,132,900 166,500 1.4
 -0- 2/23/93
 /CONTACT: Robert D. Carl III, president and chairman, or Laura J. Werner, director, shareholder relations, of Health Images, 404-587-5084/
 (HII)


CO: Health Images, Inc. ST: Georgia IN: MTC SU: ERN OFR

RA-BN -- AT005 -- 9366 02/23/93 11:05 EST
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