FONAR ANNOUNCES PATENT INFRINGEMENT SETTLEMENT; FONAR WILL RECEIVE A MONETARY PAYMENT FROM TOSHIBA

MELVILLE, NEW YORK, May 20, 1998 FONAR Corporation (NASDAQ-FONR), and Toshiba Corporation are pleased to announce that they have amicably resolved their pending patent infringement litigation in the United States District Courts in New York and California in which each company had asserted certain of its patents relating to magnetic resonance imaging technology were infringed by the other. Neither party admits liability in the Settlement Agreement. The parties have cross-licensed each other on the patents-in-suit and FONAR will receive a monetary payment from Toshiba. Other terms of the settlement are confidential.

FONAR continues to assert and protect its intellectual property rights. The Company has also reached settlement agreements with Hitachi, Philips, and Siemens for its MRI patents.

Most significantly, on October 6, 1997, the U.S. Supreme Court denied GE's certiorari petition which ended that patent infringement suit. Previously, GE had paid FONAR a total of $128.7 million.

FONAR has been highly successful with two of its patents. One is "The Cancer Detection Patent" which is the world's first MRI patent. The other is the Multi-Angle Oblique Patent. Both of these were successful against GE. FONAR's patent portfolio includes the MRI magnet patents that originated "OPEN MRI."

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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1998

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