RadNet Reports Third Quarter Financial Results and Revises 2022 Financial Guidance Ranges Revenue increased 5.2% to $350.0 million in the third quarter of 2022 from $332.7 million in the third quart

RadNet Reports Third Quarter Financial Results

and Revises 2022 Financial Guidance Ranges

LOS ANGELES, California, November 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 349 owned and operated outpatient imaging centers, today reported financial results

for its third quarter of 2022.

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "While I am pleased with our Revenue performance in the quarter, which continues to outpace our original

projections, managing costs remains a significant challenge. Primarily, the higher costs and shortage of labor are impacting our Adjusted

EBITDA(1) and profitability more than we anticipated at the beginning of the year. Though aggregate Revenue increased over

5% and same-center Revenue increased almost 4%, this performance would have been significantly better but for staffing shortages that

impacted our ability to service the increasing demand for imaging in our markets. More recently, our hiring efforts have become more productive,

which has allowed us to expand center operations, which should result in improved Revenue in the fourth quarter of this year and into

"As we discussed throughout the year, a

significant aspect of our growth strategy in the coming quarters is from expansion through de novo facilities. With respect to the 15

de novo centers in development we discussed earlier in the year, three locations have become operational and eight additional centers

should begin generating Revenue by the end of the second quarter of next year. While some of these centers will require a ramp-up period,

we anticipate that these facilities will be positive contributors to 2023," added Dr. Berger.

Dr. Berger continued, "We continue to

expand our outpatient, free-standing joint ventures with the objective of holding 50% of our imaging centers in partnership with

community hospitals and large regional health systems. To that end, subsequent to the end of this quarter, our New Jersey Imaging

Network (NJIN) joint venture acquired the outpatient radiology assets of Montclair Radiology, the owner of six imaging centers in

northern New Jersey. For more than 75 years, Montclair Radiology has been a leading provider of diagnostic imaging, and the addition

of Montclair should add more than 200,000 procedural exams and over $40 million of Revenue to NJIN. Additionally, on November

1st, we completed the expansion of our Arizona Diagnostic Radiology joint venture with Dignity Health, a member of

CommonSpirit Health. In conjunction with the expansion, Dignity Health in Arizona contributed three hospital-affiliated outpatient

imaging centers into our existing partnership. The centers provide vital coverage and access to patients of targeted geographies

within the greater Phoenix area, including desired capacity for women's imaging. In addition to these newly contributed

locations, by year-end 2022, the joint venture plans to open its 11th location, a 30,000 square foot multimodality

facility called Park Central in proximity to downtown Phoenix."

Dr. Berger added, "I'm also very pleased

to announce that we have initiated a pilot of our new Enhanced Breast Cancer Detection (EBCD) service (https://myEBCDmammo.com)

in Delaware. For an additional fee, patients can elect to enroll in a suite of premium mammography-related services, including

the use of DeepHealth Saige-DX AI, personalized lifetime risk assessment, an additional AI-driven review for certain exams and access

to a dedicated 1-800 support line. The innovative EBCD program is one of the most important endeavors the Company has pursued for our

patients and we anticipate expanding this program to all RadNet markets during the first half of next year."

Dr. Berger continued, "We recently announced

the acquisition of a controlling interest in Heart&Lung Health (HLH), a London-based teleradiology network focused on lung cancer

screening. HLH has established itself as the leading provider of lung cancer screening services to the UK National Health Service's

Targeted Lung Health Check (TLHC) program, which mandates the combined use of AI and expert radiologist interpretation for widespread

population health lung cancer screening. HLH utilizes software from RadNet's AI subsidiary, Aidence, and it is anticipated that

the program could drive over one million lung scans in England alone when the program becomes fully implemented, which is targeted by

the end of 2026. This is RadNet's first example of combining specialty teleradiology interpretation services with AI algorithms

to enable a comprehensive cancer screening program."

Dr. Berger added, "We believe the opportunities

for continuing consolidation could accelerate as a result of reimbursement pressures, challenged labor markets and rising interest rates.

Our low financial leverage, less expensive cost of capital and greater liquidity places us in a favorable position to complete accretive

acquisitions which may arise. Our cash balance at the end of the third quarter was over $95 million. We are undrawn upon our $195 million

revolving credit facility. And, we are producing a substantial amount of free cash flow. In many instances, our scale and operating expertise

provide us unique synergy and cost savings opportunities resulting from local market consolidation."

Dr. Berger concluded, "As a result of all

the above, we are extremely optimistic and excited about the remainder of the year and our positioning as we move into 2023. We look forward

to updating our stakeholders about our progress in relation to all of these growth and expansion initiatives in the coming quarters."

Third Quarter Financial Results

For the third quarter of 2022, RadNet reported

Revenue from its Imaging Centers reporting segment of $349.1 million and Adjusted EBITDA(1) of $50.2 million, which excludes

Revenue and Losses from the AI reporting segment. As compared with last year's third quarter, Revenue increased $17.0 million (or

5.1%) and Adjusted EBITDA(1) decreased $4.7 million (or 8.5%), also excluding a one-time benefit for the forgiveness of deferred

federal payroll taxes in the third quarter of 2021.

Including our AI reporting segment, Revenue was

$350.0 million in the third quarter of 2022, an increase of 5.2% from $332.7 million in last year's third quarter. Including the

losses of the AI reporting segment, Adjusted EBITDA(1) was $45.8 million in the third quarter of 2022 and $54.6 million in

the third quarter of 2021 (also excluding the one-time benefit from the forgiveness of deferred federal payroll taxes in the third quarter

For the third quarter of 2022, RadNet reported

Net Income of $668,000 as compared with $16.2 million for the third quarter of 2021. Diluted Net Income Per Share for

the third quarter of 2022 was $0.01, compared with a Diluted Net Income per share of $0.30 in the third quarter of 2021, based upon a

weighted average number of diluted shares outstanding of 57.7 million shares in 2022 and 53.8 million shares in 2021.

of unusual or one-time items impacting the third quarter including: $11.2 million of non-cash gain from interest rate swaps (net

of the amortization of the accumulation of the changes in fair value out of Other Comprehensive Income); $8.1

million change in estimate related to refund liability; $195,000 of severance paid in connection with headcount reductions related

to cost savings initiatives; $959,000 expense related to leases for our de novo facilities under construction

that have yet to open their operations; and $7.8 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 $5.3 million and diluted Adjusted Earnings Per Share(3)

was $0.09 during the third quarter of 2022.

Income in the third quarter of 2022 were certain non-cash expenses and unusual items including: $3.3 million of non-cash employee stock

compensation expense resulting from the vesting of certain options and restricted stock; $247,000 gain on the disposal of certain capital

equipment; $959,000 of non-operational rent expense associated with certain un-opened de novo locations; and $648,000

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

For the third quarter of 2022, as compared with

the prior year's third quarter, MRI volume increased 10.8%, CT volume increased 9.6% and PET/CT volume increased 11.5%. 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 third quarter. On a same-center basis, including only those centers which were part of RadNet for both the third quarters

of 2022 and 2021, MRI volume increased 9.2%, CT volume increased 6.0% and PET/CT volume increased 9.5%. Overall same-center volume, taking

into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.9% over the prior year's

Nine Month Financial Results

For the nine month period of 2022, RadNet reported

Revenue from its Imaging Centers reporting segment of $1,043.1 million and Adjusted EBITDA(1) Excluding Losses from the AI

reporting segment of $147.5 million. Revenue increased $61.7 million (or 6.3%) and Adjusted EBITDA(1) , also excluding Losses

from Provider Relief Funding of $6.3 million received in 2021 and a one-time benefit the forgiveness of deferred federal payroll taxes

in 2021 of $7.7 million, increased $1.5 million (or 1.1%). Including our AI reporting segment Revenue of $3.1 million, Revenue was $1,046.2

million in the nine months of 2022, an increase of 6.5% from $981.9 million in last year's nine month period. Including the AI reporting

segment Adjusted EBITDA(1) losses, the one-time benefit the forgiveness of deferred federal payroll taxes in 2021 and Provider

Relief Funding received in 2021, Adjusted EBITDA(1) for the nine month period of 2022 was $135.2 million as compared with $164.4

million in the same nine month period of 2021.

For the nine month period in 2022, RadNet reported

Net Income of $11.6 million, a decrease of approximately $17.0 million over the first nine months of 2021. Per share diluted Net

Income for the first nine months of 2022 was $0.19, compared to a diluted Net Income per share of $0.54 in the same nine month period

of 2021 (based upon a weighted average number of diluted shares outstanding of 57.0 million in 2022 and 53.2 million in 2021).

Affecting Net Income