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PRESS RELEASE DATED NOVEMBER 14, 2007 EXHIBIT 99.1
[RADNET, INC. LOGO]
FOR IMMEDIATE RELEASE
RADNET ANNOUNCES AGREEMENT TO ACQUIRE THE PAPASTAVROS GROUP OF
IMAGING CENTERS
IN DELAWARE
o 12 CENTERS THROUGHOUT DELAWARE CONSISTING OF MULTI-MODALITY
FACILITIES
AND SATELLITE OFFICES
o ACQUISITION PROVIDES RADNET WITH A NEW CORE MARKET
CONTAINING
SIGNIFICANT EXPANSION AND CONSOLIDATION OPPORTUNITIES
o TRANSACTION IS CONSISTENT WITH RADNET'S STRATEGY TO ENTER NEW
MARKETS
WITH SCALE AND MARKET PENETRATION
o CENTERS ARE SERVICED BY A SINGLE LEADING RADIOLOGY GROUP THAT
HAS
CONTRACTED WITH RADNET ON AN EXCLUSIVE BASIS
LOS ANGELES, CALIFORNIA, NOVEMBER 14, 2007 - RADNET, INC.
(NASDAQ: RDNT), a
national leader in providing high-quality, cost-effective
diagnostic imaging
services through a network of owned and operated outpatient
imaging centers,
today reported that it has signed a definitive agreement to
purchase
substantially all of the assets of Papastavros' Associates
Medical Imaging and
related entities for $18.0 million in cash plus the assumption
of approximately
$3.6 million of debt. The cash purchase price includes the
purchase of certain
real estate assets utilized by the business which will be sold
simultaneously
with the closing of the transaction to a third party at its then
appraised value
estimated to be between $11.5 million and $12.5 million. RadNet
has agreed to
lease the real estate from the new owner on a long-term basis.
The cash purchase
price (not including the separately acquired real estate) will
be funded by a
portion of the previously announced $25 million incremental term
loan provided
by GE Healthcare Financial Services in August 2007. The
operations of
Papastavros have approximately $24 million in annual
revenue.
Founded in 1958, Papastavros is one of the largest and most
established
outpatient imaging practices in Delaware. The centers offer a
combination of
MRI, CT, PET, nuclear medicine, mammography, bone densitometry,
fluoroscopy,
ultrasound and X-ray. The acquisition represents the first time
RadNet has
entered a new market since its acquisition of Radiologix.
"This acquisition is consistent
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