RadNet Reports Fourth Quarter 2022 Results, Including Record Revenue and Adjusted EBITDA (1) , and Releases 2023 Financial Guidance Revenue increased 15.2% to a record of $383.9 million in the fourt

RadNet Reports Fourth Quarter 2022 Results, Including Record Revenue

and Adjusted EBITDA(1), and Releases 2023 Financial Guidance

LOS ANGELES, California, February 28, 2023

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

imaging services through a network of 357 owned and/or operated outpatient imaging centers, today reported financial results for its fourth

quarter and full year ended December 31, 2022.

Fourth Quarter Report:

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "I am very pleased with our strong performance in the fourth quarter, which enabled us to exceed our

2022 full-year revised guidance ranges for Revenue and Adjusted EBITDA(1). Contributing to our record Revenue and Adjusted

EBITDA(1) in the quarter was a combination of high procedural demand for our services and improving conditions in our labor

markets. Since September, we have been more successful in filling open positions and staffing our locations, enabling us to better meet

the increasing demand we are experiencing for our services in virtually all markets in which we operate."

"Throughout 2022, we carefully managed our

liquidity and financial leverage. At year-end 2022, we had a cash balance of over $127 million and our net debt leverage ratio remained

under 3.5 times Adjusted EBITDA(1). Our Days Sales Outstanding (DSOs) remained low at 39 days as of December 31, 2022, helping

to contribute to our strong cash flow in the quarter and throughout 2022," Dr. Berger noted.

"Moving into 2023, the demand for diagnostic

imaging remains robust and is growing. Our solid financial position and operating model have presented us with targeted opportunities

to expand our business, particularly through the construction of new centers to meet the growing demand and utilization in strategic markets.

Currently, we have over a dozen centers in various stages of construction and development, and we believe these sites should be positive

contributors to our performance in 2023. As the imaging center market further consolidates, we continue to see opportunities for tuck-in

acquisitions in virtually all of RadNet markets at prices consistent with our historical discipline. Furthermore, throughout 2023, we

expect to expand existing health system joint ventures and partnerships and establish new ones," added Dr. Berger.

Dr. Berger concluded, "We are also making

significant strides in commercializing and monetizing our AI investments. Specifically, in November 2022, we began an implementation of

our Enhanced Breast Cancer Diagnostic (EBCD) mammography program, where we are offering novel AI-enhanced mammography services to women

in conjunction with their annual breast cancer screening exams for an additional fee. We expect that this offering will be available in

all RadNet mammography centers by the end of the summer of 2023. Based upon early adoption data from several of our east coast markets,

we are anticipating our losses from AI in 2023 to significantly narrow as a result of EBCD revenue, and we project our AI segment to be

profitable in 2024."

For the fourth quarter of 2022, RadNet reported

Revenue from its Imaging Center reporting segment of $382.5 million and Adjusted EBITDA(1) of $61.6 million, which excludes

Revenue and Losses from the AI reporting segment. As compared with last year's fourth quarter, Revenue increased $50.3 million (or

15.1%) and Adjusted EBITDA(1) increased $9.6 million (or 18.4%), also excluding $2.9 million of Provider Relief Funding received

in the fourth quarter of 2021.

Including our AI reporting segment, Revenue was

$383.9 million in the fourth quarter of 2022, an increase of 15.2% from $333.1 million in last year's fourth quarter. Including

the Adjusted EBITDA(1) losses of the AI reporting segment, Adjusted EBITDA(1) was $57.2 million in the fourth quarter

of 2022 and $51.7 million in the fourth quarter of 2021 (also excluding the Provider Relief Funding received in the fourth quarter of

For the fourth quarter of 2022, RadNet reported

a Net Loss of $934,000 as compared with a net loss of $3.8 million for the fourth quarter of 2021. Net Loss Per Share for the fourth quarter

of 2022 was $(0.02), compared with a Net Loss per share of $(0.07) in the fourth quarter of 2021, based upon a weighted average number

of diluted shares outstanding of 57.0 million shares in 2022 and 54.0 million shares in 2021.

There were a number of unusual or one-time items

impacting the fourth quarter of 2022 including: $45,000 of non-cash gain from interest rate swaps (excluding the amortization of the accumulation

of the changes in fair value out of Other Comprehensive Income); $450,000 of severance paid in connection with headcount reductions related

to cost savings initiatives; $1.2 million expense related to leases for our de novo facilities under construction that have yet to open

their operations; $927,000 acquisition transaction costs primarily related to the purchase of Heart and Lung Imaging Limited; $47,000

of valuation adjustment for contingent consideration related to acquisitions; $731,000 expenses related to debt restructuring and loss

on extinguishment related to the refinancing of New Jersey Imaging Network's credit facilities; and $6.1 million of pre-tax losses

related to our AI reporting segment. Adjusting for the above items, Adjusted Earnings(3) from the Imaging Centers reporting

segment was $6.4 million and diluted Adjusted Earnings Per Share(3) was $0.11 during the fourth quarter of 2022.

Also, affecting Net Income in the fourth quarter

of 2022 were certain non-cash expenses and unusual items including: $4.7 million of non-cash employee stock compensation expense resulting

from the vesting of certain options and restricted stock; $1.6 million loss on the disposal of certain capital equipment; and $750,000

of non-cash amortization of deferred financing costs and loan discounts related to financing fees paid as part of our existing credit

For the fourth quarter of 2022, as compared with

the prior year's fourth quarter, MRI volume increased 11.9%, CT volume increased 11.8% and PET/CT volume increased 20.7%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 8.0% over the

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

quarters of 2022 and 2021, MRI volume increased 7.5%, CT volume increased 6.0% and PET/CT volume increased 16.9%. Overall same-center

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.6% over the

prior year's same quarter.

For full-year 2022, RadNet reported Revenue from

its Imaging Centers reporting segment of $1,426 million and Adjusted EBITDA(1) Excluding Losses from the AI reporting segment

of $209.0 million. Revenue increased $112.0 million (or 8.5%) and Adjusted EBITDA(1) decreased $2.9 million (or 1.4%), excluding

$9.1 million of Provider Relief Funding received in 2021.

Including our AI reporting segment Revenue of

$4.4 million, Revenue was $1,430 million for full-year 2022, an increase of 8.7% from $1,315 million in 2021. Including Adjusted EBITDA(1)

losses from the AI segment, Adjusted EBITDA(1) for 2022 was $192.5 million as compared with $209.8 million in 2021 (which includes

a one-time $7.7 million benefit from the employee retention credit and excludes $9.1 million of Provider Relief Funding received in 2021).

For 2022, RadNet reported Net Income of $10.7

million, a decrease of approximately $14.1 million over 2021. Per share diluted Net Income for the full year of 2022 was $0.17, compared

to a diluted Net Income per share of $0.46 in 2021 (based upon a weighted average number of diluted shares outstanding of 57.3 million

in 2022 and 53.4 million in 2021).

Affecting Net Income in 2022 were certain non-cash

expenses and unusual items including: $39.6 million of non-cash gain from interest rate swaps; $946,000 of severance paid in connection

with headcount reductions related to cost savings initiatives; $4.3 million expense related to leases for our de novo facilities under

construction that have yet to open their operations; $24.9 million of pre-tax losses related to our AI reporting segment; $23.8 million

of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $731,000 expenses

related to debt restructuring and loss on extinguishment related to the refinancing of New Jersey Imaging Network's credit facilities;

$2.2 million in legal settlements; $2.5 million loss on the disposal of certain capital equipment; $8.1 million change in estimate related

to refund liability; and $2.7 million of non-cash amortization of deferred financing costs and loan discounts related to financing fees

paid as part of our existing credit facilities.

Actual 2022 Results vs. 2022 Guidance:

The following compares the Company's 2022

performance with previously announced revised guidance levels.

______________________

Dr. Berger commented, "Our strong operating

performance in the fourth quarter drove us to meet or exceed most all of our projected guidance ranges. Our 2022 results were above the

high end of our revised Revenue and Adjusted EBITDA(1) guidance ranges. Additionally, our Free Cash Flow(2) results

fell within our revised guidance range, despite our higher than originally projected capital expenditures as a result of the construction

of certain de novo locations. We are very pleased with these results in light of the difficult labor market we faced throughout most of

2022, impacting the availability and cost of staffing."

2023 Fiscal Year Guidance

For its 2023 fiscal year, RadNet announces its