RadNet Reports First Quarter Financial Results with Record First Quarter Revenue, Adjusted EBITDA (1) and Adjusted Earnings (3) and Revises Upwards 2024 Financial Guidance Ranges Total Company Reven

RadNet Reports First Quarter Financial

Results with Record First Quarter Revenue, Adjusted EBITDA(1) and Adjusted Earnings(3) and Revises Upwards 2024

Financial Guidance Ranges

LOS ANGELES, California, May 8, 2024 -

RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient

diagnostic imaging services through a network of 375 owned and operated outpatient imaging centers, today reported financial results

for its first quarter of 2024.

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "Despite experiencing some adverse impact from severe winter weather conditions during the first quarter,

both the Imaging Center and newly established Digital Health reportable operating segments demonstrated strong growth and achieved first

quarter record results. Total Company Revenue grew 10.5% as compared with last year's first quarter to a record $431.7 million.

The Digital Health segment Revenue of $14.7 million increased 32.3% from last year's same quarter. The strong growth in Digital

Health was, in part, driven by our AI businesses, whose Revenue increased 118% as compared with last year's first quarter, mainly

on the continuing success of the rollout of our Enhanced Breast Cancer Detection (EBCD) DeepHealth AI-powered screening mammography program."

"Improved reimbursement from commercial

and capitated payors, ongoing efforts toward greater operating efficiency and effective cost controls resulted in an increase to Adjusted

EBITDA(1) margins by 120 basis points over last year's first quarter. We believe there is further room for improvement,

especially as we continue to disproportionally grow the higher margin Digital Health businesses and lean into both clinical and generative

AI," added Dr. Berger.

Dr. Berger continued, "At the end of the

first quarter, we announced a new joint venture in the northern and eastern parts of the San Fernando Valley of Los Angeles with Providence

Health System. As of quarter end, we had 137 of our 375 centers (or 36.5%) held in partnership with leading health systems. These partnerships

allow us to play a more integral role within the local healthcare communities we serve by increasing access, disseminating new technologies

and improving the quality of patient care."

"Given the positive trends we are experiencing

in virtually all aspects of our business and the strong financial performance of the first quarter, we are revising upwards certain guidance

levels in anticipation of financial results that we believe will exceed our original expectations. Most significantly, we have increased

2024 guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow(2)," added Dr. Berger.

Dr. Berger continued, "We believe strong

growth is sustainable as we continue to execute on various initiatives. In response to high demand and patient backlogs in many of RadNet's

local markets, we embarked over a year ago on a program to expand capacity through the development and construction of new imaging centers.

We anticipate opening approximately a dozen new centers by year end 2024, and are working with prospective and existing health system

partners to expand joint venture offerings. Digital Health initiatives continue to expand, including the further rollout of the EBCD program

along with other clinical AI for lung and prostate cancers. Development of our DeepHealth OS technology platform is driving toward implementation

within RadNet beginning in the third quarter of this year and within external customers as early as the first quarter of 2025. This DeepHeatlh

OS will integrate new generative AI capabilities to help us and external customers automate and drive efficiencies for many of the back-office

and support functions involved with running imaging centers."

"RadNet's balance sheet continues

to strengthen. In March, we completed an offering of common stock, where we raised net proceeds of approximately $219 million, which contributed

to the $527 million cash balance at quarter end. Additionally, subsequent to the quarter's end, we completed a successful debt refinancing

transaction, resulting in a reduction of our interest rates, an extension of maturities and the funding of additional cash to the balance

sheet of approximately $168 million. At quarter end, our leverage ratio of Net Debt to Adjusted EBITDA(1) was at a record low,

slightly above 1.0x," concluded Dr. Berger.

For the first quarter of 2024, RadNet reported

Total Company Revenue of $431.7 million and Adjusted EBITDA(1) of $58.5 million. Revenue increased $41.1 million (or 10.5%)

and Adjusted EBITDA(1) increased $10.3 million (or 21.4%) as compared with the first quarter of 2023.

For the first quarter of 2024, RadNet reported

Imaging Center Revenue of $417.0 million and Adjusted EBITDA(1) of $54.9 million. Revenue increased $37.6 million (or 9.9%)

and Adjusted EBITDA(1) increased $6.8 million (or 14.1%) as compared with the first quarter of 2023.

For the first quarter of 2024, RadNet reported

Digital Health Revenue of $14.7 million and Adjusted EBITDA(1) of $3.5 million. Revenue increased $3.6 million (or 32.3%) and

Adjusted EBITDA(1) increased $3.5 million (or 17,500%) as compared with the first quarter of 2023. Digital Health Revenue and

Adjusted EBITDA(1) growth was due in part from a $2.5 million (or 118.8%) increase in AI Revenue, which climbed to $4.7 million

during the first quarter of 2023.

Total Company Net Loss for the first quarter of

2024 was $2.8 million as compared with a Total Company Net Loss of $21.0 million for the first quarter of 2023. Net Loss Per Share for

the first quarter of 2024 was $(0.04), compared with a Net Loss per share of $(0.36) in the first quarter of 2023, based upon a weighted

average number of diluted shares outstanding of 69.3 million shares in 2024 and 57.7 million shares in 2023.

of unusual or one-time items impacting the first quarter including: $1.2 million of non-cash gain from interest rate swaps; $1.0

million expense related to leases for our de novo facilities under construction that have yet to open their operations; $2.0 million non-cash

increase to contingent consideration related to completed acquisitions; and $3.3 million of non-capitalized research and development expenses

with respect to our DeepHealth Cloud OS and generative AI. Adjusting for the above items, Total Company Adjusted Earnings(3)

was $5.0 million and diluted Adjusted Earnings Per Share(3) was $0.07 during the first quarter of 2024. This compares with

Total Company Adjusted Loss(3) of $13.0 million and diluted Adjusted Loss Per Share(3) of $(0.22) during the first

For the first quarter of 2024, as compared with

the prior year's first quarter, MRI volume increased 11.7%, CT volume increased 9.1% and PET/CT volume increased 17.5%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 5.7% over the

prior year's first quarter. On a same-center basis, including only those centers which were part of RadNet for both the first quarters

of 2024 and 2023, MRI volume increased 9.9%, CT volume increased 6.5% and PET/CT volume increased 15.3%. Overall same-center volume, taking

into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.8% over the prior year's

2024 Revised Guidance

RadNet amends its previously announced guidance

Imaging Center Segment

Digital Health Segment

Financial Results Conference Call

Dr. Howard Berger, President and Chief Executive

Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call to discuss its first quarter

2024 results on Thursday, May 9th, 2024 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details:

Date: Thursday, May 9, 2024

Time: 10:30 a.m. Eastern Time

Dial In-Number: 844-826-3035

International Dial-In Number: 412-317-5195

that participants dial in approximately 5 to 10 minutes prior to the start of the 10:30 a.m. call. There will also be simultaneous and

archived webcasts available at https://viavid.webcasts.com/starthere.jsp?ei=1667758&tp_key=222b4e91a8 or

http://www.radnet.com under the "Investors" menu section and "News Releases" sub-menu of the website. An archived

replay of the call will also be available and can be accessed by dialing 844-512-2921 from the U.S., or 412-317-6671 for international

callers, and using the passcode 10188629.

RadNet, Inc. is the leading national provider

of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue.

RadNet has a network of 375 owned and/or operated outpatient imaging centers. RadNet's markets include California, Maryland, Delaware,

New Jersey, New York, Florida, Texas and Arizona. In addition, RadNet provides radiology information technology and artificial intelligence

solutions, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry.

Together with affiliated radiologists, and inclusive of full-time and per diem employees and technologists, RadNet has a total of over

9,700 employees. For more information, visit http://www.radnet.com.

Forward Looking Statements