MELVILLE, NEW YORK, July 10, 2007 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, reported today that the company has sold Seven UPRIGHT™ Multi-Position™ MRIs during the previous two weeks. By contrast, since this year began, sales by other MRI manufacturers have declined, with one major company reporting a quarterly imaging sales decline including MRI of $150 million.
           A June 26, 2007, article in the Wall Street Journal online titled "Medicare Cuts Hurt Sales of Imaging Equipment," indicated that "the Medicare payment changes... sent sales of scanners (including MRI) made by GE, Siemens AG, Toshiba Corp. and others tumbling more than 20% last quarter, according to data provided by an industry group." See: http://online.wsj.com/article/BT-CO-20070625-711291.html and http://blogs.wsj.com/health/2007/06/26/medicare-cuts-hurt-sales-of-Imaging-equipment/ (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.).
           In recent weeks, FONAR has noted an overall increase in interest in its UPRIGHT™ MRI product. Raymond V. Damadian, president and founder of FONAR said, “A noticeable surge in interest and activity has come our way. It concluded with seven new sales that occurred in the last two weeks.”
           “I think,” said Dr. Damadian, “that the dramatic spike in FONAR UPRIGHT™ sales reflects the realization by current MRI users that when competing for scans the FONAR UPRIGHT™ has a unique advantage that distinguishes it from the great majority of other MRI scanners, which are recumbent only. These scanners cannot achieve the needed UPRIGHT™ Multi-Position images that the FONAR scanner can. This advantage is significant in light of the reduced reimbursement reported by the Wall Street Journal for MRI scans in general.”
           “I think it’s clear,” said Dr. Damadian, “that for those medical professionals who recognize the need for FONAR’s UPRIGHT™ Multi-Position™ technology, the current depression in the sales of recumbent MRI scanners reported by the Wall Street Journal is irrelevant. The reason is, the FONAR UPRIGHT™ is essential to good spine surgery outcomes and patient care. A traditional recumbent non-weight-bearing MRI will often miss a patient’s spine pathology. A surgeon who knows he needs ‘electric lights’ to see the patient’s problem realizes the depressed sales of ‘gas lights’ (recumbent MRIs) are not relevant.”
           “Approximately 1,000,000 patients undergo spine surgery in the U.S. each year,” said Dr. Damadian. “In my view all of these patients should be imaged in an UPRIGHT™ MRI scanner before surgery, in order to be sure important pathology is not being missed that could cause the wrong surgery to be performed.”
           The sales also followed the designation of the UPRIGHT™ MRI as the 2007 invention of the year by the Intellectual Property Owners Education Foundation. Previous winners include the Jarvik artificial heart and the Bose stereo speakers.
           Among the recent FONAR sales was an UPRIGHT™ MRI sale in London, as reported on July 5.
           By the end of the June, FONAR had sold 150 UPRIGHT™ Multi-Position™ MRIs. In addition, 120 UPRIGHT™ MRIs had been installed.

FONAR™ Corporation
110 Marcus Drive
Melville, N.Y. 11747
Tel. 631-694-2929
Fax. 631-390-9540
Email sales@FONAR.com
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