RadNet Reports Fourth Quarter 2023 Results, Including Record Revenue and Adjusted EBITDA (1) , Releases 2024 Financial Guidance and Forms a New Digital Health Reporting Segment Revenue increased 9.5

RadNet Reports Fourth Quarter 2023 Results, Including Record Revenue

and Adjusted EBITDA(1), Releases 2024 Financial Guidance and Forms a New Digital Health Reporting Segment

LOS ANGELES, California, February 29, 2024

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

imaging services through a network of 366 owned and/or operated outpatient imaging centers, today reported financial results for its fourth

quarter and full year ended December 31, 2023.

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "Record Revenue and Adjusted EBITDA(1) in the fourth quarter enabled us to exceed our 2023

full-year revised guidance ranges, ranges that were increased several times throughout 2023. The performance was the result of a continuation

of strong industry trends and execution on a multi-pronged growth strategy focused on driving same-center performance, the expansion of

existing and establishment of new health system partnerships and investments made in de novo imaging centers and newer technologies (including

equipment, software and AI that drive improved throughput and efficiency). In the fourth quarter, the core Imaging Center segment experienced

same-center procedural volume growth of 5.5%, Revenue growth of 8.6% and Adjusted EBITDA(1) growth of 11.0% as compared with

the fourth quarter of 2022. Adjusted EBITDA(1) margins in the Imaging Center segment improved in the fourth quarter of 2023

relative to 2022 by 30 basis points, from 16.1% to 16.4%."

"During 2023, we carefully managed liquidity

and financial leverage. This was highlighted with our completion of a successful stock offering in June of 2023, adding approximately

$245 million of net proceeds to our balance sheet and enabling a discretionary debt repayment of $30 million in October 2023. As a result

of these actions and a focus on margins and Adjusted EBITDA(1) growth, at year-end 2023, net debt to Adjusted EBITDA(1)

fell below 2.0x. Liquidity at the end of 2023 remained strong, with a $342 million cash balance and Days Sales Outstanding (DSO's)

of 32.0, which we believe to be among the best in the industry," added Dr. Berger.

"The demand for diagnostic imaging remains

robust moving into 2024. Our solid financial position and multifaceted operating model have presented us with opportunities to expand

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

project to open approximately a dozen new facilities during 2024, and believe these sites should be positive contributors to our performance.

Additionally, we expect to continue expanding existing health system joint ventures and partnerships and establish new ones during 2024,

explained Dr. Berger."

"Earlier this week, we were pleased to announce

a new platform acquisition in Houston, which represents our first new geographic expansion since 2020. The Houston metropolitan marketplace,

encompassing about 7.3 million people, is the fourth most populous city and the second fastest growing metropolitan area in the United

States. In our commitment to improving and expanding patient access and services, we will look to grow in this market in various ways,

including through de novo build-outs, health system partnerships and introducing our AI and leading edge clinical and operating digital

health solutions. In the future, we may enter additional new markets when conditions and opportunities support such moves," added

Dr. Berger concluded, "We remain enthusiastic

about the initiatives in information technology and digital health. These include migrating our proprietary software solutions to the

cloud, creating the new DeepHealth OS suite of solutions, new projects leveraging generative AI to improve operating efficiency and lower

costs and the expansion of AI-enhanced programs in breast, lung and prostate screening domestically and abroad. The AI Revenue almost

tripled in 2023 as compared with 2022, and if the continued implementation of the Enhanced Breast Cancer Diagnostic (EBCD) screening mammography

program progresses as planned, AI Revenue could almost double in 2024 relative to 2023."

Fourth Quarter Report:

For the fourth quarter of 2023, RadNet reported

Revenue from its Imaging Center reporting segment of $415.3 million and Adjusted EBITDA(1) of $68.3 million, which excludes

Revenue and Adjusted EBITDA(1) Losses from the AI reporting segment. As compared with last year's fourth quarter, Revenue

increased $32.8 million (or 8.6%) and Adjusted EBITDA(1) increased $6.7 million (or 11.0%).

Including our AI reporting segment, total company

Revenue was $420.4 million in the fourth quarter of 2023, an increase of 9.5% from $383.9 million in last year's fourth quarter.

Including the Adjusted EBITDA(1) losses of the AI reporting segment of $2.5 million in the fourth quarter of 2023 and $4.3

million in the fourth quarter of 2022, total company Adjusted EBITDA(1) was $65.8 million in the fourth quarter of 2023 and

$57.2 million in the fourth quarter of 2022, a growth of 15.0%.

On an unadjusted basis, for the fourth quarter

of 2023, RadNet reported a Net Loss of $1.9 as compared with a net loss of $934,000 for the fourth quarter of 2022. Net Loss Per Share

for the fourth quarter of 2023 was $(0.03), compared with a Net Loss per share of $(0.02) in the fourth quarter of 2022, based upon a

weighted average number of diluted shares outstanding of 67.9 million shares in 2023 and 57.0 million shares in 2022.

Adjusting for a number of unusual or one-time

items impacting the fourth quarter of 2023, Adjusted Earnings(3) from the Imaging Center reporting segment was $13.7 million

and diluted Adjusted Earnings Per Share(3) was $0.20 during the fourth quarter of 2023 as compared with $0.11 during the fourth

The unusual or one-time items impacting the fourth

quarter of 2023 excluded in calculating Adjusted Earnings(3) were as follows: $7.2 million of non-cash loss from interest rate

swaps (excluding the amortization of the accumulation of the changes in fair value out of Other Comprehensive Income); $621,000 of severance

paid in connection with headcount reductions related to cost savings initiatives; $880,000 expense related to leases for de novo facilities

under construction that have yet to open their operations; $222,000 acquisition transaction costs; $429,000 gain from a valuation adjustment

for contingent consideration related to acquisitions; $1.3 million of non-capitalized research and development investment in DeepHealth

Cloud OS and generative AI; $5.1 million loss on lease abandonment; and $5.0 million of pre-tax losses related to our AI reporting segment.

Also, affecting Net Income in the fourth quarter

of 2023 were certain non-cash expenses and unusual items including: $5.4 million of non-cash employee stock compensation expense resulting

from the vesting of certain options and restricted stock; $1.0 million loss on the disposal of certain capital equipment; and $747,000

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 2023, as compared with

the prior year's fourth quarter, MRI volume increased 13.2%, CT volume increased 11.3% and PET/CT volume increased 18.5%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 7.9% 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 2023 and 2022, MRI volume increased 10.8%, CT volume increased 8.2% and PET/CT volume increased 17.4%. Overall same-center

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 5.5% over the

prior year's same quarter.

For full-year 2023, RadNet reported Revenue from

its Imaging Center reporting segment of $1,604 million and Adjusted EBITDA(1) Excluding Losses from the AI reporting segment

of $245.1 million. In 2023, Revenue increased $178.5 million (or 12.5%) and Adjusted EBITDA(1) increased $36.1 million (or

17.2%) as compared with 2022.

Including our AI reporting segment Revenue of

$12.5 million, total company Revenue was $1,617 million for full-year 2023, an increase of 13.0% from $1,430 million in 2022. Including

Adjusted EBITDA(1) losses from the AI segment of $12.8 million, total company Adjusted EBITDA(1) for 2023 was $232.3

million as compared with $192.5 million in 2022, an increase of 20.7%.

For 2023, RadNet reported Net Income of $3.0 million,

a decrease of approximately $7.6 million over 2022. Per share diluted Net Income for the full year of 2023 was $0.05, compared to a diluted

Net Income per share of $0.17 in 2022 (based upon a weighted average number of diluted shares outstanding of 64.7 million in 2023 and

57.3 million in 2022).

Affecting Net Income in 2023 were certain non-cash

expenses and unusual items including: $8.2 million of non-cash loss from interest rate swaps; $3.8 million of severance paid in connection

with headcount reductions related to cost savings initiatives; $3.6 million expense related to leases for our de novo facilities under

construction that have yet to open their operations; $22.6 million of pre-tax losses related to our AI reporting segment; $26.8 million

of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $2.2 million loss

on the disposal of certain capital equipment; $5.1 million of lease abandonment charges; and $16.8 million gain from the contribution

of imaging centers into a joint venture; $1.3 million of non-capitalized research and development investment in DeepHealth Cloud OS and

generative AI; $4.0 million non-cash charge for intangible adjustments; $4.1 million non-cash gain on contingent consideration; $3.0 million

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

Actual 2023 Results vs. 2023 Guidance

The following compares the Company's 2023

performance with previously announced guidance levels:

Imaging Center Segment