RadNet Reports Second Quarter Financial Results and Reaffirms Previously Announced 2016 Guidance Levels Total Net Revenue, modified for working capital adjustments related to New York acquisitions,

RadNet Reports Second Quarter Financial Results and Reaffirms

Previously Announced 2016 Guidance Levels

California, August 9, 2016 - RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality,

cost-effective, fixed-site outpatient diagnostic imaging services through a network of 310 owned and/or operated outpatient imaging

centers, today reported financial results for its second quarter of 2016.

Dr. Howard Berger, President and Chief

Executive Officer of RadNet, commented, "I am very pleased with our operational results this quarter and the improvements

we are making to our business. Normalizing our results for the one-time non-cash gains and losses in the quarter related to our

New York acquisitions, our business produced double digit revenue growth, positive same store procedural growth for the ninth quarter

in a row and higher EBITDA and Earnings as compared with last year's second quarter. Additionally, sequentially from our

first quarter of this year, our EBITDA increased almost 30%, raising EBITDA margins from 12.5% in the first quarter to 15.6% in

the second quarter of 2016."

Dr. Berger continued, "I'm

excited about the opportunities we have in front of us to continue to expand and improve our business organically, particularly

our ability to leverage best practices of the most successful aspects of our business on the east and west coasts. For example,

we are pursuing several new health system partnerships on the west coast, a business model that has traditionally been a strength

of our east coast operations, and we are looking to expand existing joint ventures on the east coast. During the quarter, we announced

and commenced operations with our first California health system partnership with Dignity Health in the city of Glendale. This

announcement and other initiatives we are working on in California with our Breastlink and oncology capabilities have created keen

interest from other prominent health systems. We are more encouraged than ever that the joint venture partnership model that we've

successfully demonstrated in the mid-Atlantic and New Jersey marketplaces will become more prominent for our west coast operations

in the coming quarters."

Dr. Berger added, "Another example

of the sharing of best practices between our east and west coast operations is the opportunity to bring capitation and risk-based

contracting outside of our California marketplace, where it has been such an integral aspect of how we've successfully grown

our business. Diagnostic Imaging Group, which we acquired last year, had a small risk-based component of its business. With the

combination of DIG's assets with our other significant New York metropolitan operations which include Lenox Hill Radiology,

New York Radiology Partners and our Mid-Rockland Imaging centers, we have begun to initiate meaningful conversations with medical

groups on the east coast interested in our risk-based exclusive network contracting capabilities. I'm more confident than

ever that this will be the successful model of the post-Affordable Care Act era, and that RadNet will be the first imaging center

company to meaningfully align with major capitated medical groups, health systems and Accountable Care Organizations across all

of our target markets. We expect to be in a position to discuss these opportunities more meaningfully before year end."

"From a financial perspective, we've

never been in a stronger position to grow our business. We completed the refinancing of our senior debt facilities on July 1st,

where we lengthened the maturities on our debt to 2023 (in the case of our first lien term loan) and 2021 in the case of our senior

revolving credit facility. At the same time, we availed ourselves of additional operating flexibility to continue to grow our business

and pursue the types of opportunities for expansion that we envision will be available to us over the next several years. We believe

that securing our capital structure in a low interest rate environment was prudent and allows us to focus on operations without

having concern about risks associated with the capital markets in years to come," finished Dr. Berger.

Second Quarter Financial Results

For the second quarter of 2016, RadNet

reported Adjusted Revenue of $224.6 million, after adding back $6.1 million of one-time non-cash working capital adjustments related

to New York acquisitions which served to lower GAAP Revenue by such an amount during the quarter. Adjusted EBITDA(1)

for the second quarter was $35.1 million. Adjusted Revenue increased $20.3 million (or 10.0%) and Adjusted EBITDA(1)

increased $1.6 million (or 4.7%) from the second quarter of last year.

For the second quarter, RadNet reported

Adjusted Net Income of $4.4 million, which is modified by removing certain tax effected non-cash items including (i) the $6.1 million

of working capital adjustments mentioned above; (ii) a $5.0 million settlement gain on the return of common stock relating to the

acquisition of Diagnostic Imaging Group; and (iii) a $221,000 one-time adjustment to depreciation in conjunction with the finalization

of the purchase price allocation related to the Diagnostic Imaging Group acquisition. Adjusted Net Income increased $987,000 over

the second quarter of 2015.

Per share Adjusted Net

Income for the second quarter was $0.09, compared to per share Adjusted Net Income in the second quarter of 2015 of $0.08 (based

upon a weighted average number of diluted shares outstanding of 46.9 million and 44.7 million for these periods in 2016 and 2015,

Income in the second quarter of 2016 were certain non-cash expenses and non-recurring items including: $5.0 million settlement

gain related to the return of common stock in connection with our acquisition of Diagnostic Imaging Group;

$6.1 million charge to Revenue related to working capital adjustments also pertaining to acquisitions we completed in New York;

$221,000 of one-time depreciation expense related to the finalization of the purchase price allocation related to the Diagnostic

Imaging Group acquisition; $1.0 million of non-cash employee stock compensation expense resulting from the vesting of certain options

and restricted stock; $173,000 of severance paid in connection with headcount reductions related to cost savings initiatives;

$441,000 loss on the sale of certain capital equipment; and $1.4 million of non-cash amortization of

deferred financing costs and discount on debt issuances.

For the second quarter of 2016, as compared

with the prior year's second quarter, MRI volume increased 7.5%, CT volume increased 8.9% and PET/CT volume increased 4.8%.

Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased

9.6% over the prior year's second quarter. On a same-center basis, including only those centers which were part of RadNet

for both the second quarters of 2016 and 2015, MRI volume increased 3.0%, CT volume increased 4.4% and PET/CT volume increased

1.3%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other

exams, increased 0.4% over the prior year's same quarter.

Six Month Financial Results

For the six months ended June 30, 2016,

RadNet reported Adjusted Revenue of $441.0 million, after adding back $6.1 million of one-time non-cash working capital adjustments

related to NY acquisitions which served to lower GAAP Revenue by such an amount during the six month period. Adjusted EBITDA(1)

for the six month period in 2016 was $62.2 million. Adjusted Revenue increased $55.4 million (or 14.4%) and Adjusted

EBITDA(1) increased $8.5 million (or 15.8%) from the same six month period last year.

For the six month period in 2016, RadNet

reported Adjusted Net Income of $2.6 million, which is modified by removing certain tax effected non-cash items including (i) the

$6.1 million of working capital adjustments mentioned above; (ii) a $5.0 million settlement gain on the return of common stock

relating to the acquisition of Diagnostic Imaging Group; and (iii) a $110,000 one-time adjustment to depreciation in conjunction

with the finalization of the purchase price allocation related to the Diagnostic Imaging Group acquisition.

Adjusted Net Income increased $3.8 million

over the six month period of 2015. Per share Adjusted Net Income for the six month period in 2016 was

$0.06, compared to per share Adjusted Net Loss in the prior year's same period of $(0.03) (based upon a weighted average

number of diluted shares outstanding of 47.0 million and 43.1 million for these periods in 2016 and 2015, respectively).

results in the six months ended June 30, 2016 were certain non-cash expenses and non-recurring

items including: $5.0 million settlement gain related to the return of common stock in connection with the acquisition of

Diagnostic Imaging Group; $6.1 million charge to Revenue related to a working capital adjustment also

pertaining to acquisitions we completed in New York; $110,000 of one-time depreciation expense related to the finalization of the

purchase price allocation related to the Diagnostic Imaging Group acquisition; $3.8 million of non-cash employee stock compensation

expense resulting from the vesting of certain options and restricted stock; $340,000 of severance paid in connection with

headcount reductions related to cost savings initiatives; $441,000 loss on the sale of certain capital equipment; and $2.7

million of non-cash amortization of deferred financing costs and discount on debt issuances.

2016 Guidance Update

RadNet reaffirms its previously announced

2016 guidance ranges as follows:

Dr. Berger added, "We are on track

to meet our guidance ranges for the year. All ranges remain unchanged from what we announced earlier in the year with the exception

of increasing our targeted capital expenditure range by $5 million. This increase is to fund a replacement program of our computed

radiography (CR x-ray) scanners to provide them with digital wireless transmitting capabilities. This will improve quality, lower