FONAR PRESS RELEASE NEWS FONAR Corporation For Immediate Release The Inventor of MR Scanning Contact: Daniel Culver An ISO 9001 Company Director of Communications Melville, New York 11747 E-mail: investor@fonar.com Phone

FONAR REPORTS RECORD PROFITS FROM OPERATIONS

NET INCOME DOUBLES FROM FISCAL 2011;

REVENUES INCREASE 19% TO $39.4 MILLION

MELVILLE, NEW YORK, October 1, 2012 - FONAR Corporation (NASDAQ-FONR),

The Inventor of MR Scanning , reported today its year-end financial results for the year-ended June 30, 2012. The Company

has now had nine straight quarters of profitability. For the 2012 fiscal year as compared to the 2011 fiscal year, the Company

made improvements in revenues and profit across both of its operating segments, those being the UPRIGHT MRI segment that includes

product sales, service and repair fees, and HMCA, its STAND-UP MRI center management subsidiary. All of these utilize the

FONAR UPRIGHT Multi-Position MRI which is also known as the STAND-UP MRI.

Statement of Income Items

Total net income for the year ended June 30, 2012, more than doubled,

an increase of 108% to $6.9 million, from $3.3 million for the year ended June 30, 2011.

Income from operations increased 90% from $3.8 million, for the

year ended June 30, 2011, to $7.2 million for the year ended June 30, 2012.

Basic net income per common share available to common stockholders

for the year ended June 30, 2012, was $0.93, an increase of 66% over the previous year ended June 30, 2011 of $0.56.

Diluted net income per common share available to common stockholders

for the year ended June 30, 2012, was $0.91, an increase of 65% over the previous year ended June 30, 2011, of $0.55.

Total revenues for the UPRIGHT MRI segment increased 5% to

$18.7 million for the year ended June 30, 2012 as compared to $17.8 million for the year ended June 30, 2011. Total costs related

to revenues for the UPRIGHT MRI segment increased just 1% to $8.9 million for the year ended June 30, 2012 as compared to

$8.8 million for the year ended June 30, 2011

Total revenues for the HMCA subsidiary, the STAND-UP MRI center

management segment increased 35% to $20.7 million for the year ended June 30, 2012 as compared to $15.3 million for the year ended

June 30, 2011. Total costs related to revenues for HMCA increased just 27% to $12.3 million for the year ended June 30, 2012 as

compared to $9.7 million for the year ended June 30, 2011.

Collectively, total revenues increased 19 % to $39.4 million for

the year ended June 30, 2012, as compared to $33.1 million, for the year ended June 30, 2011. Total costs related to total revenues

increased 15% to $21.2 million for the year ended June 30, 2012, as compared to the prior year ended June 30, 2011, at $18.5 million.

Overhead consisting of research & development (R&D) and

selling, general & administrative costs (S,G&A) rose only 1% to $10.0 million for the year ended June 30, 2012 from $9.9

million for the year ended June 30, 2011.

Total assets increased 6% to $33.6 million for the year ended June

30, 2012 as compared to the previous fiscal year when total assets of $31.6 million.

At June 30, 2012, total cash and cash equivalents were $12.0 million,

total current assets were $25.9 million, total current liabilities were $21.1 million, and total long-term liabilities were $1.5

million. Also, total stockholders' equity was $11.1 million, as of June 30, 2012.

See the accompanying tables for more details.

Significant Highlights in Fiscal 2012

HMCA, FONAR's STAND-UP MRI center management subsidiary,

added a center in Yonkers, NY, in January 2012. This brings the total number of managed MRI scanning centers to eleven. HMCA managed

centers have added patient volume significantly for the past two years. During the years ended June 30 for 2010, 2011 and 2012,

approximately 33,100, 38,600 and 43,700 MRI scans were performed, respectively, at the HMCA centers. HMCA is actively pursuing

additional management contracts, primarily in New York and Florida.

While the STAND-UP MRI center management segment is the fastest

growing segment of FONAR's business, manufacturing and selling the FONAR UPRIGHT Multi-Position MRI is a principal

part of this business. Among the recent sales and installations was Oklahoma UPRIGHT MRI in Oklahoma City (www.okuprightmri.com).

That sale, announced on November 30, 2011, was notable that it had become the 29th state that had purchased a FONAR UPRIGHT

Multi-Position MRI for its citizens.

Within the year, the company sold and installed an UPRIGHT

Multi-Position MRI scanner to Parkway Radiology, LLC, Hagerstown, MD. The group who purchased the FONAR UPRIGHT Multi-Position

MRI said they wanted the best diagnostic device available to allow them to be a "Center of Excellence for the Spine."

Accordingly, they considered other state-of-the-art MRI scanners, including those with field strengths at 3.0 and 1.5 Tesla, but

those systems are single-position only and non weight-bearing. They therefore concluded that to be a "Center of Excellence

for the Spine," it was crucial to have an MRI that could evaluate the spine in its full range of dynamic weight-bearing positions.

In addition, another recent sale is being installed in central California

and expects to be operating in October.

Breakthrough in the detection of MS

On October 5, 2011, the Company reported a diagnostic breakthrough

in the understanding of the genesis of multiple sclerosis (MS) based on observations made possible by the company's unique

FONAR UPRIGHT Multi-Position MRI. The press release indicated that the cause of multiple sclerosis may be biomechanical

and related to earlier trauma to the neck, which can result in the obstruction of the flow of cerebrospinal fluid (CSF), which

is produced and stored in the central anatomic structures of the brain known as the ventricles. Since the ventricles produce a

large volume of CSF each day (500 cc), an obstruction can result in a build-up of pressure within the ventricles, resulting in

leakage of the CSF into the surrounding brain tissue. This leakage could be responsible for generating the brain lesions of multiple

The research was published in the journal Physiological Chemistry

and Physics and Medical NMR (Sept. 20, 2011, 41: 1-17), titled "The Possible Role of Cranio-Cervical Trauma and Abnormal

CSF Hydrodynamics in the Genesis of Multiple Sclerosis." It was co-authored by FONAR MRI researchers Raymond V. Damadian,

M.D., president and chairman of FONAR, and FONAR scientist David Chu, PhD. The complete study can be viewed at www.fonar.com/pdf/PCP41_damadian.pdf.

Dr. Damadian said, "We used the UPRIGHT Multi-Position

MRI to view the flow of cerebrospinal fluid in and out of the brain with the patients scanned UPRIGHT and scanned lying down.

The UPRIGHT MRI also revealed that these obstructions were the result of structural deformities of the cervical spine, induced

by trauma earlier in life. The findings are based on viewing the real-time flow of cerebrospinal fluid in a series of eight randomly

chosen patients with multiple sclerosis. These invaluable dual observations have only been possible since the invention by FONAR

of an MRI capable of imaging the patient UPRIGHT ." For more information visit: www.fonar.com.

On October 4, 2011, Dr. Damadian announced the study at a Radiology

Department Grand Rounds at the University of California, San Diego Medical Center. William G. Bradley, Jr., M.D., Ph.D., F.A.C.R.,

Chairman of the Department of Radiology, and a Professor of Radiology at UCSD School of Medicine introduced Dr. Damadian to his

colleagues at grand rounds. Dr. Bradley said, "Dr. Damadian has shown that 8 patients with MS had degenerative changes in

their cervical spines which impinged on the spinal canal and limited the pulsatile, to-and-fro flow of cervical CSF over the cardiac

cycle, as demonstrated on UPRIGHT MRI. His hypothesis that increased resistance to outflow of CSF is linked to the etiology

of MS has some similarities to Dr. P. Zamboni's hypothesis that MS is due to the impeded outflow of venous blood from the

brain due to dural sinus stenoses. In both theories, increased resistance to outflow of either CSF or venous blood would be expected

to modify the intracranial pressure wave over the cardiac cycle. While both theories need to be further tested with larger controlled

studies, it is intriguing that they seem to invoke similar pathologic changes. Whether these changes are etiologic in all cases

of MS remains to be tested."

On November 2, 2011, FONAR reported on a 41-year-old female patient

with MS that had been one of the eight patients in the original study. The FONAR UPRIGHT MRI had found cervical malrotations

at the cranio-cervical junction and alterations of CSF flow dynamics which gave rise to CSF fluid leakages into surrounding brain

tissue. The CSF leakages visualized were directly connected to the MS lesions visualized on the UPRIGHT MRI. Dr. Damadian

stated, "These new observations have uncovered biomechanical barriers that appear to lead to multiple sclerosis. It is significant

that these barriers may be therapeutically addressable."

The MS patient was treated by Dr. Scott Rosa, with a proprietary

protocol using an Atlas Orthogonal (AO) instrument and the FONAR UPRIGHT Multi-Position MRI. The patient has experienced

a significant reduction in symptoms which correlate directly to 28.6% reduction of her CSF pressure on post MRI evaluation. At

this time the patient continues to be free of MS symptoms as well as vertigo and vomiting on recumbency. The patient continues

being administered by Dr. Rosa.

Management Discussion

Dr. Damadian said, "FONAR has performed an impressive comeback