RadNet Reports Second Quarter Financial Results, with Record Quarterly Revenue and Adjusted EBITDA (1) , and Updates 2023 Financial Guidance Ranges Revenue increased 13.9% to a quarterly record of $

RadNet Reports Second Quarter Financial

Results, with Record Quarterly Revenue and Adjusted EBITDA(1), and Updates 2023 Financial Guidance Ranges

LOS ANGELES, California, August 9, 2022 -

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

services through a network of 363 owned and operated outpatient imaging centers, today reported financial results for its second quarter

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "I am very pleased with the continued strength of our core imaging center business. In our Imaging

Center segment, Revenue increased 13.8% and Adjusted EBITDA(1) increased 14.7% from last year's second quarter. Our record

quarterly Revenue and Adjusted EBITDA(1) were driven by 11.4% aggregate and 7.1% same-center procedural volume growth relative

to last year's second quarter, along with effective expense management. We continue to benefit from the steady growth in the overall

industry as well as the accelerating shift from hospital-based procedures to lower-cost, more convenient freestanding centers."

"As a result of the positive trends we are

experiencing in our core business and the strong financial performance of the first and second quarters, we have elected to revise upwards

our 2023 full year Imaging Center segment Revenue and Adjusted EBITDA(1) guidance levels in anticipation of financial results

that we believe will exceed both our original guidance ranges and those that were revised after our first quarter results," added

Dr. Berger continued, "Our AI segment has

begun to demonstrate accelerated growth. Compared with last year's second quarter, our AI revenue grew 52.8%. Additionally, for

the first six months of 2023 compared with last year's same six-month period, our AI division Revenue grew 109%. We are experiencing

increasing enrollment as we roll-out our Enhanced Breast Cancer Detection program and we are encouraged about its future success. While

this service offering continues to gain acceptance from our patients and referring physicians, we have spent a considerable amount time

and effort in optimizing the educational benefits and pricing to achieve wider adoption and exposure. These efforts purposefully slowed

the roll-out by 90-120 days, impacting the implementation and delaying the financial performance of the program."

"To assist with the growth and commercialization

of our digital health businesses, which in addition to our AI initiatives, includes our eRAD radiology informatics businesses, we are

pleased to welcome the addition to our management team of Sham Sokka and Sanjog Misra, both with extensive experience in medical software

and AI businesses. These senior management additions emphasize our commitment to, and confidence in our digital businesses. We believe

these digital health initiatives will have a transformative impact on both RadNet's AI and Imaging Center businesses, and positions

us to be a significant agent of change in our dynamic industry, an industry that is driven by technology and innovation," said Dr.

"In response to the heavy volume demands

we are experiencing in many of our imaging center regions, we are growing capacity and access through the de novo strategy we embarked

on last year. We opened one de novo facility during the second quarter, and anticipate opening five additional centers by year end as

well as another six facilities planned in 2024. Our hospital and health system joint venture offerings continue to grow with new system

partnerships and through expansion of existing relationships," concluded Dr. Berger.

Second Quarter Financial Results

For the second quarter of 2023, RadNet reported

Revenue from its Imaging Centers reporting segment of $401.3 million and Adjusted EBITDA(1) of $63.7 million, which exclude

Revenue and Losses from the AI reporting segment. As compared with last year's second quarter, Revenue increased $48.5 million (or

13.8%) and Adjusted EBITDA(1) increased $8.2 million (or 14.7%). Including our AI reporting segment, Revenue was $403.7 million

in the second quarter of 2023, an increase of 13.9% from $354.4 million in last year's second quarter. Including the losses of the

AI reporting segment, Adjusted EBITDA(1) was $60.4 million in the second quarter of 2023 and $51.3 million in the second quarter

of 2022, an increase of 17.7%.

For the second quarter of 2023, RadNet reported

Net Income of $8.4 million as compared with $7.9 million for the second quarter of 2022. Diluted Net Income Per Share for the second quarter

of 2023 was $0.12, compared with a Diluted Net Income Per Share of $0.13 in the second quarter of 2022, based upon a weighted average

number of diluted shares outstanding of 60.9 million shares in 2023 and 57.0 million shares in 2022.

There were a number of unusual or one-time items

impacting the second quarter including: $4.2 million of non-cash gain from interest rate swaps; $1.0 million expense related to the change

in valuation of contingent consideration related to completed acquisitions; $759,000 expense related to leases for our de novo facilities

under construction that have yet to open their operations; and $8.7 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 $14.9 million and diluted Adjusted

Earnings Per Share(3) was $0.24 during the second quarter of 2023. This compares with Adjusted Earnings(3) of $8.6

million and diluted Adjusted Earnings Per Share(3) of $0.15 during the second quarter of 2022.

Also, affecting Net Income in the second quarter

of 2023 were certain non-cash expenses and unusual items including: $4.9 million of non-cash employee stock compensation expense resulting

from the vesting of certain options and restricted stock; $1.9 million of severance paid in connection with headcount reductions related

to cost savings initiatives; $77,000 loss on the disposal of certain capital equipment; and $748,000 of non-cash amortization of deferred

financing costs and loan discounts related to financing fees paid as part of our existing credit facilities.

For the second quarter of 2023, as compared with

the prior year's second quarter, MRI volume increased 11.8%, CT volume increased 11.3% and PET/CT volume increased 18.3%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 11.4% 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 2023 and 2022, MRI volume increased 7.3%, CT volume increased 6.3% and PET/CT volume increased 18.8%. Overall same-center

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 7.1% over the

prior year's same quarter.

Six Month Financial Results

For the six month period of 2023, RadNet reported

Revenue from its Imaging Centers reporting segment of $789.8 million and Adjusted EBITDA(1) Excluding Losses from the AI reporting

segment of $116.4 million. Revenue increased $95.8 million (or 13.8%) and Adjusted EBITDA(1) increased $19.1 million (or 19.7%).

Including our AI reporting segment Revenue of $4.5 million, Revenue was $794.3 million in the six months of 2023, an increase of 14.1%

from $696.1 million in last year's six-month period. Including the AI reporting segment Adjusted EBITDA(1) losses, Adjusted

EBITDA(1) for the six month period of 2023 was $108.6 million as compared with $89.5 million in the same six month period of

For the six-month period in 2023, RadNet reported

Net Loss of $12.6 million, compared with Net Income of $10.9 million in the first six months of 2022. Per share Net Loss for the first

six months of 2023 was $(0.21), compared to a diluted Net Income per share of $0.18 in the same six-month period of 2022 (based upon a

weighted average number of diluted shares outstanding of 59.2 million in 2023 and 56.7 million in 2022).

Affecting Net Income for the six month period

of 2023 were certain non-cash expenses and non-recurring items including: $17.1 million of non-cash employee stock compensation expense;

$16.2 million of pre-tax losses related to our AI reporting segment; $2.0 million of severance paid in connection with headcount reductions

related to cost savings initiatives; $1.7 million of non-operational rent expense associated with certain un-opened de novo locations:

$656,000 loss on the disposal of certain capital equipment; $66,000 of non-cash gain from interest rate swaps; and $1.5 million of amortization

of deferred financing costs and loan discount related to our existing credit facilities.

2023 Guidance Update

RadNet amends its previously announced guidance

Imaging Center Segment

Artificial Intelligence Segment

our guidance ranges in our core Imaging Center reporting segment for Revenue and Adjusted EBITDA(1) to

reflect the strong financial results in the first half of 2023 as compared with our budget. Additionally, we have lowered our guidance

ranges for Revenue and Adjusted EBITDA(1) for the AI Segment to reflect delays resulting

from optimizing the implementation of our Enhanced Breast Cancer Detection program."

Conference Call for Today

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 second quarter

2023 results on Tuesday, August 8th, 2023 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details:

Date: Tuesday, August 8, 2023

Time: 10:30 a.m. Eastern Time