RadNet, Inc. (NASDAQ: RDNT) is a national market leaderproviding high-quality, diagnostic imaging services through a network of 175 fully-owned and operated outpatient imaging centers. RadNet performs multiple imaging exams, “Modalities”, including MRI, PET, X-Ray, CT, Mammography, Nuclear Medicine, Ultrasound and Fluoroscopy. The Company is the largest owner and operator of fixed diagnostic imaging centers in the United States. RadNet’s core markets include California, Maryland, Delaware, New Jersey and New York. The Company’s strategy is to continue establishing their footprint and control in these regional markets especially in the Northeast and California. In California, RadNet is the only imaging center player to provide exclusive managed care capitation arrangements with prominent medical groups and Independent Physician Associations (IPAs) providing the Company with a strong recurring revenue model and barriers to entry. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees and performs over 3 million procedures per year.

Investment Highlights

•     Largest national owner and operator of fixed-site diagnostic imaging centers, with 175 locations
•     Concentrated regional networks in CA, MD/DE, NJ and NY (170 of our 175 sites)

•     Strategy is to control regional markets
•     Provides operational efficiencies and marketing and contracting benefits
•     Recurring Revenue Model and Barriers to Entry
•     Only imaging center player to provide exclusive managed care capitation arrangements with prominent medical groups and Independent Physician Associations (IPAs)
•     Over 750,000 lives managed exclusively in California
•     Over 25 contracts representing 15% of RadNet’s revenue
•     Creates “Pull Through” business where doctors from capitated physician groups often refer their non-capitated or discretionary patients
•     Tens of thousands of referring physician relationships
•     RadNet is often the largest radiology provider in most insurance networks
•     Many of RadNet’s centers have been fixtures in their communities for decades
•     RadNet deploys the most advanced technology and contracts with radiologists who are premier in their subspecialist fields
•     Expanding Product and Services—Recently expanded into Breast Oncology and comprehensive breast disease management centers
•     Industry Consolidation— Deficit Reduction Act of 2005 (“DRA”) and Credit Crises Are Driving Consolidation; RadNet has been one of the industries principal acquirers
•     Top Industry Partners—Broad and deep relationship with GE
•     Equipment provider, service and maintenance, debt financing
•     Experienced and Focused Management—Top Executives are pioneers in the imaging evolution

Management Team:

Dr. Howard Berger, Chairman and CEO: Dr. Berger co-founded RadNet in 1981. He has over 25 years of experience in the development and management of successful healthcare businesses and graduated from the University of Illinois Medical School. Dr. Berger is Board Certified in Nuclear Medicine and Internal Medicine residency as well as in a masters program in medical physics in the University of California system.

Mr. Mark Stolper, CFO and Executive V.P.: Mr. Stolper has deep experience in investment banking and private equity having worked previously at Dillon Read investment banking, Saratoga Partners private equity and Archon Capital Partners backed by the Milken family and NewsCorp. Mr. Stolper worked at Eastman Kodak in the business development department and is the Co-founder of Broadstream Capital Partners.

For more information please visit www.radnet.com.