Fonar Press Releases

For Immediate Release

The Inventor of MR Scanning™

 

An ISO 9001 Company

Contact: Daniel Culver

110 Marcus Drive

Director of Communications

Melville, NY 11747-4292

Web site: www.fonar.com

Phone: (631) 694-2929

Email: invest @ fonar. com

Fax: (631) 390-9540

   
Contact: Jordan Darrow
Tel: (631) 367-1866
Darrow Associates, Inc.
jdarrow@optonline.net

First Sale and Installation of
FONAR UPRIGHT MULTI-POSITION MRI in London, England

European Expansion Efforts Continue with
Strengthened Presence in the United Kingdom

          MELVILLE, NEW YORK, September 6, 2006 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, announced today, that a FONAR UPRIGHT(TM) MULTI-POSITION(TM) MRI has been sold and installed at The London Upright MRI Centre in London, England. This marks the first FONAR UPRIGHT™ MULTI-POSITION™ MRI sale and installation in England, one of the largest and most developed markets in Europe. According to a report by the U.S. & Foreign Commercial Service and the U.S. Department of State, the United Kingdom (UK) had the fifth largest medical equipment market in the world and
the third largest in Europe with a total market value over $3.5 billion.
          London Upright MRI Centre is a new venture founded by Dr. Edward Shelton. Its mission is to bring Upright™ MRI technology to England. The Centre treats both private and NHS patients. Dr. Shelton said, "We are delighted to see the enthusiasm among the referring physicians for the increased diagnostic capabilities of the FONAR UPRIGHT™ MULTI-POSITION™ MRI. We are also very pleased by the very favorable response from the healthcare insurance community to this new technology."
          "Surgeons around the world are awakening to a serious condition known as failed back surgery syndrome (FBSS), which can often be attributed to the wrong diagnosis," said Dr. Raymond Damadian, president and founder of FONAR. "The spine is a weight-bearing structure wherein the forces on it, when the body is upright, are up to eleven times greater than when the patient is supine. Accordingly, when evaluating a patient for back pain, it is unsatisfactory to lie the patient down, remove the compressive forces causing the back pain, and expect to get a correct diagnosis."
          Dr. Damadian continued, "Although the FONAR UPRIGHT™ MULTI-POSITION™ MRI is developed and manufactured in the United States, the need is worldwide and patients everywhere need the FONAR UPRIGHT™MULTI-POSITION™ technology that can enable healthcare practitioners to get beyond the diagnostic limitations of recumbent-only, single-position, conventional MRI scanners. The technological superiority of the FONAR UPRIGHT™ MULTI-POSITION™ MRI is heavily patented and substantially differentiated in an otherwise crowded MRI market. No other MRI scanner in the world can image patients in multiple positions, including in the upright and weight-bearing positions. We are pleased that in the few years since introducing the FONAR UPRIGHT™ MULTI-POSITION™ MRI, we have successfully entered several key European markets and we intend to expand our marketing efforts into other countries on the continent, as well as to sell more units in existing markets such as the United Kingdom."
          FONAR's increasing presence in the United Kingdom includes the placement of a FONAR UPRIGHT™
MULTI-POSITION™ MRI in Aberdeen Scotland, the Company's first European sale. The MRI scanner has been operating at the University of Aberdeen, Woodend Hospital, Aberdeen, Scotland, since August 2002. Today's announcement profiles FONAR's first sale in England of the UPRIGHT™ MULTI-POSITION™ MRI. An earlier transaction that occurred in England was the sale and installation of the world's first and only FONAR 360™ MRI to the Nuffield Orthopaedic Centre (NOC) NHS Trust in Oxford. The NOC is a specialist 190 bed teaching hospital and part of the UK National Health Service.
          "The purchase of our medical devices by respected research university and hospital customers in the UK, as
well as private sector sales, validates the benefits of upright and multi-position imaging," continued Dr. Damadian. "Our MRI scanners are specifically designed for the purpose of administering appropriate medical treatment and the overall advancement of science to support improved healthcare. We believe the trend for cost effective and results oriented medical treatment will drive FONAR sales beyond the most sophisticated practitioners into the broader market."
          FONAR has expanded its marketing efforts throughout Europe. The Company's second European UPRIGHT™ MULTI-POSITION™ MRI was installed in Spain, with two other sales following in Switzerland. In Germany, a sale occurred in 2005 immediately following a distribution agreement formed with Tecserena GmbH, based in Cologne, Germany, as a new European representative and distributor. Prior to its formation, Tecserena's founders managed certain operations of Hitachi Medical Systems Germany. Tecserena can be found on the Internet at www.tecserena.com.

About The London Upright MRI Centre
The London Upright MRI Centre is at Julia House, 44 Newman Street, in London, England W1T 1QD, close to
Harley Street, the most famous medical address in England. The Web site is www.uprightmri.co.uk/

About FONAR
FONAR® was incorporated in 1978, making it the first, oldest and most experienced MRI manufacturer in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. Since its inception, FONAR has installed hundreds of MRI scanners worldwide. Their stellar product line includes the FONAR Upright™ Multi-Position™ MRI (also known as the Upright™ MRI and the Stand-Up™ MRI), the only whole-body MRI that performs Multi-Position™ Imaging (mpMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR Upright™ Multi-Position™ MRI often sees the patient's problem that other scanners cannot because they are single position, lie-down only. With nearly one half million patients scanned, the patient-friendly FONAR Upright™ Multi-Position™ MRI has a near zero claustrophobic rejection rate by patients. A radiologist said, “FONAR Upright™ MRI – No More Claustrophobia – The Tunnel Is Gone.” As another FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while they watch a 42" flat screen TV. FONAR’s latest MRI scanner is the FONAR 360, a room-size recumbent scanner that optimizes openness while facilitating physician access to the patient. FONAR is headquartered on Long Island, New York, and has approximately 400 employees.

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The Inventor of MR Scanning™, True Flow™ MRI, Stand-Up™ MRI, FONAR Upright™ MRI, Position™ MRI, Multi-Position™ MRI, PMRI™ and The Proof is in the Picture™ are trademarks of FONAR® Corporation.

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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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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