MELVILLE, NEW YORK, March 9, 2006 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, announced today that its wholly-owned subsidiary Health Management Corporation of America (HMCA) has installed a FONAR UPRIGHT™ MRI scanner at an existing MRI scanning center located in Tallahassee, Florida. There are now nine (9) HMCA-managed FONAR UPRIGHT™ MRI centers throughout the United States. The continued expansion of HMCA-managed FONAR UPRIGHT™ MRI scanning centers is part of FONAR’s strategy to achieve sustainable revenue growth and diversify its operations within its core MRI competency.
          FONAR’s recently launched advertising campaign should benefit all FONAR UPRIGHT™ MRI scanning centers, including those managed by HMCA, as patients and referring physicians learn of the benefits of Position™ Imaging. HMCA-managed centers generate revenue for FONAR in the form of management fees as well as service contract fees for the maintenance of scanning units, which should increase as more centers are opened and as patient utilization improves. The eleven (11) MRI scanning centers currently managed by HMCA, including recently installed sites, are performing over 25,000 scans annually. Presently, HMCA’s first five (5) FONAR UPRIGHT™ MRI centers average nearly 3,000 scans per year. Within the past year, two (2) HMCA centers were upgraded with FONAR UPRIGHT(TM) MRIs and have already more than doubled their scan volume and are already at a 3,000 scan per year pace.
          The FONAR UPRIGHT™ MRI unit in Tallahassee has replaced an early-model FONAR MRI scanner in an existing and well-established scanning center. The recently upgraded scanning center, which has been renamed Stand-Up MRI of Tallahassee, P.A., is the first FONAR UPRIGHT™ MRI scanner in the Florida panhandle, and the 15th in Florida .
          Raymond V. Damadian, M.D., president and founder of FONAR, said, “This scanning center has been serving the people of Tallahassee with FONAR equipment for over a decade. In fact, it was the second MRI in the city of Tallahassee. It’s a well respected and well established medical facility that’s very closely knit with the community, so it’s especially gratifying to bring to them the best MRI technology available anywhere in the world.
          “The FONAR UPRIGHT™ MRI or Stand-Up™ MRI, does what no other MRI can,” continued Dr. Damadian. “It allows MRI images to be made under normal weight-bearing conditions, such as sitting or standing. For example, sometimes the cause of a patient’s back problem can only be seen when the back is supporting the body’s weight. In these cases every single lie-down MRI will miss it, but the FONAR UPRIGHT™ MRI will find it. And of course, if the surgeon can’t see it, he can’t fix it. Moreover the FONAR UPRIGHT™ MRI obtains its pictures from the patient in his normal vertical “activity posture,” where in many situations his symptoms are apt to be more pronounced, or even absent than when he is reclining.”
          “It’s even more than that,” continued Dr. Damadian. “No matter what position causes the pain, the FONAR UPRIGHT™ MRI is able to take the MRI picture with the patient assuming the position that engenders the pain. It may be bending or twisting the neck in a certain way, or holding the patient’s arm or leg in a particular position, or arching the patient’s back. Whatever the position, the FONAR UPRIGHT™ MRI will be able to capture for the benefit of the patient and his doctor what is really going on inside the patient when it hurts. We refer to this technology as Position™ imaging MRI™ because of its power to visualize the patient’s problem exactly as he experiences it. Conventional MRIs that are typically tube- or slot-shaped lack the physical room to accommodate these positions. The FONAR UPRIGHT™ MRI can because of its unique front and top-open architecture.”
          “By the same token, the spacious architecture of the FONAR UPRIGHT™ MRI makes it by far the most patient-friendly MRI. The people of Tallahassee are going to love it,” said Dr. Damadian.

FONAR™ Corporation
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