FONAR Upright MRI Sales Rise to 117 as of June 30

Scanner Exhibits Broad Appeal Among Medical
Specialists

Business Wire
Wednesday July 13, 2005

MELVILLE, N.Y.–(BUSINESS WIRE)–July 13, 2005–FONAR
Corporation (NASDAQ-FONR), The MRI Specialist(TM),
announced today that sales of its Upright(TM) MRI (the
“Stand-Up(TM)) rose to 117 and installations climbed
to 91 as of June 30, 2005. The Company’s sales backlog
currently stands at 26.

Sales in the fourth fiscal quarter were spread
throughout the U.S. and Europe. Two of the domestic
sales were repeat orders to existing users as was a
repeat sale to FONAR’s current Stand-Up(TM) user in
Switzerland which brings the total number of repeat
sales to customers who have owned and experienced the
benefits of the Stand-Up(TM) to 21. The mix of owners
currently using the Stand-Up(TM) MRI includes
neurosurgeons, orthopedic surgeons, radiologists, pain
management specialists and neurologists which
demonstrates the broad applicability of FONAR’s new
upright imaging technology.

Installations in the fourth quarter were
geographically spread out. Six Upright(TM) MRIs were
installed in the U.S. and two in Puerto Rico. A FONAR
Upright(TM) MRI was installed in Switzerland making it
the third in Europe.

“FONAR continued its forward progress in FY 2005,
recording 45 new installations,” said Raymond
Damadian, president and founder of FONAR. “As a
result, during the first nine months of Fiscal 2005 we
have been profitable.”

“Our superior technology and ability to meet the
special needs of physicians and surgeons continues to
generate demand for the Upright(TM) MRI” In addition,
the pipeline of opportunities continues to build. We
believe that our unique product and increased
marketing efforts will continue to serve us well as we
enter FY 2006. Like one of our customers stated, We
believe that the FONAR Upright(TM) MRI will become the
‘Gold Standard’ of MRI technology and will eventually
replace, at a minimum, all other open MRIs.”

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, we have installed nearly 300 MRI
scanners worldwide. FONAR’s stellar product line
includes the Upright(TM) MRI (also known as the
Stand-Up(TM) MRI), the only whole-body MRI that
performs Position(TM) imaging (pMRI(TM)) 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(TM) MRI often sees the patient’s problem that
other scanners cannot because they are lie-down only.
With over 100,000 patients scanned, the
patient-friendly Upright(TM) MRI has a near zero
claustrophobic rejection rate by patients. As a 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. Our
latest MRI scanner is the FONAR 360(TM), 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 500 employees.

MRI Specialist, Stand-Up, Upright, Position, PMRI and
The Proof is in the Picture are trademarks of FONAR.

Be sure to visit FONAR’s Web site for Company product
and investor information:

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 filings with the Securities
and Exchange Commission.

Contact:

FONAR Corporation
Daniel Culver or David B. Terry, 631-694-2929
Fax: 631-390-9540

or
Investor Relations:
The Anne McBride Company
Kathy Price, 212-983-1702, x212