MAJOR FONAR PATENT AWARD AFFIRMED; FONAR PIONEER MRI PATENT AWARD REINSTATED; GE ORDERED TO PAY $103 MILLION

MELVILLE, NEW YORK - February 25, 1997 - FONAR CORPORATION (NASDAQ, FONR) a leading manufacturer of MRI scanners headquartered in Melville, New York, reported today that the United States Court of Appeals for the Federal Circuit affirmed the judgment of the United States District Court for the Eastern District of New York in its favor against General Electric Company (Fonar Corporation and Dr. Raymond V. Damadian v. General Electric Company et ano., 96-1075,-1106,-1091) for $62 million (plus interest) for infringement of its multi-angle oblique imaging patent (MAO), U.S. Patent No. 4,871,966.

In addition, the Court of Appeals reinstated the jury verdict finding infringement of its original MRI patent, U.S. Patent No. 3,789,832 and awarding $35 million in damages as compensation for that infringement. U.S. Patent No. 3,789,832 was the world's first MRI patent, awarded to Dr. Raymond V. Damadian, the President and founder of Fonar in 1974 for his pioneering invention.

A Fonar spokesman today stated, "The Court of Appeals' decision today vindicates at long last that Fonar is the first in the field of MRI. We would like to take this opportunity to offer special thanks to our customers, shareholders, employees, attorneys and others who believed in and supported us over the years and helped make this day possible." FONAR is represented by Ronald J. Schutz and Martin R. Lueck of the Minneapolis Law Firm of Robins, Kaplan, Miller and Ciresi.

This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.

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1997

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