Primedex Health Systems, Inc. Announces Closing of Acquisition of Radiologix, Inc.

  
    
  
  
    
      Primedex Health Systems, Inc. (OTCBB:PMDX) today announced the 
      completion of its previously announced acquisition of Radiologix, Inc. 
      (AMEX:RGX). Primedex has acquired Radiologix in a cash and stock 
      transaction which is valued, based upon the closing stock price of 
      Primedex on November 14, 2006, at $221 million, including net debt as of 
      September 30, 2006. With 134 locations throughout the United States, the 
      combined company will be the largest owner and operator of fixed-site 
      diagnostic imaging centers in the United States.
    
    
      Under the terms of the agreement, Radiologix shareholders received an 
      aggregate consideration of 22,621,922 shares of Primedex common stock 
      and $42,950,000 in cash. Based upon Primedex's closing share price on 
      November 14, 2006, each Radiologix shareholder received $1.79 in cash 
      for each Radiologix share, plus one share of Primedex common stock for a 
      total consideration of $4.59.
    
    
      Dr. Howard Berger, president and chief executive officer of Primedex, 
      stated, “The acquisition of Radiologix, which 
      I hope will bring long-term benefits to our shareholders, employees, and 
      patients alike, is a transforming event for our company. Despite this 
      transaction, which creates the largest operator of fixed imaging 
      centers, the $100 billion diagnostic imaging landscape remains highly 
      fragmented and full of further opportunity. I believe this acquisition 
      positions us in the near future to capitalize on the dynamic changes I 
      foresee in our industry in the years to come. I welcome the Radiologix 
      employees into the Primedex family and believe their future 
      contributions will be valuable for the continued success of our company.”
    
    
      The acquisition of Radiologix, a national provider of imaging services 
      headquartered in Dallas, Texas, allows Primedex to expand its presence 
      in California, and gives Primedex a concentrated platform outside of 
      California that it plans to optimize and grow. Primedex will use the 
      acquisition to further its strategies of geographic clustering, 
      exclusive capitation contracting and multi-modality product offerings, 
      which it will now be able to pursue on a national scale.
    
    
      Bear, Stearns & Co. Inc. acted as exclusive financial advisor to 
      Radiologix with respect to the transaction. Jefferies & Company, Inc. 
      acted as exclusive financial advisor to Primedex with respect to the 
      transaction. Sheppard Mullin Richter & Hampton LLP acted as outside 
      legal counsel to Primedex and Haynes & Boone acted as outside legal 
      counsel to Radiologix with respect to the transaction.
    
    
      ABOUT PRIMEDEX HEALTH SYSTEMS, INC.
    
    
      Primedex Health Systems, Inc., is the California market leader in 
      providing high-quality, cost-effective diagnostic imaging services 
      through a network of fully-owned and operated outpatient imaging 
      centers. As of October 31, 2006, Primedex owned and operated 65 
      facilities. For its fiscal year ended October 31, 2006, Primedex and its 
      subsidiaries performed approximately 1,000,000 diagnostic imaging 
      procedures. At October 31, 2006, together with Beverly Radiology Medical 
      Group, the medical group that provides medical services to the majority 
      of the Company's locations, the Company had a total of 950 full-time and 
      375 part-time and per-diem employees. For more information, visit www.radnet.com.
    
    
      FORWARD LOOKING STATEMENTS
    
    
      This press release contains forward-looking statements within the 
      meaning of the U.S. Private Securities Litigation Reform Act of 1995. 
      Specifically, statements concerning the benefits of the proposed 
      transaction, expected synergies, anticipated future financial and 
      operating performance, and Primedex Health Systems' ability to continue 
      to grow the business by generating patient referrals and contracts with 
      radiology practices, recruiting and retaining technologists, and 
      receiving third-party reimbursement for diagnostic imaging services, as 
      well as Primedex's financial guidance, are forward-looking statements 
      within the meaning of the Safe Harbor. Forward-looking statements are 
      based on management's current, preliminary expectations and are subject 
      to risks and uncertainties which may cause Primedex's actual results to 
      differ materially from the statements contained herein. These risks and 
      uncertainties include, among others, problems that may arise in 
      successfully integrating the businesses of the two companies; unexpected 
      costs involved in the transaction; the inability of the combined 
      companies to achieve cost-cutting synergies; future regulatory or 
      legislative actions in the industry; as well as those set forth in 
      Primedex's reports filed with the SEC, including its annual report on 
      Form 10-K for the year ended October 31, 2005, and Quarterly Reports on 
      Form 10-Q for the quarters ended January 31, 2006, April 30, 2006 and 
      July 31, 2006 and the joint proxy statement/prospectus dated October 20, 
      2006. Undue reliance should not be placed on forward-looking statements, 
      especially guidance on future financial performance, which speaks only 
      as of the date it is made. Primedex undertakes no obligation to update 
      publicly any forward-looking statements to reflect new information, 
      events or circumstances after the date they were made, or to reflect the 
      occurrence of unanticipated events.
    
  
Primedex Health Systems, Inc. (OTCBB:PMDX) today announced the
completion of its previously announced acquisition of Radiologix, Inc.
(AMEX:RGX). Primedex has acquired Radiologix in a cash and stock
transaction which is valued, based upon the closing stock price of
Primedex on November 14, 2006, at $221 million, including net debt as
of September 30, 2006. With 134 locations throughout the United
States, the combined company will be the largest owner and operator of
fixed-site diagnostic imaging centers in the United States.

   Under the terms of the agreement, Radiologix shareholders received
an aggregate consideration of 22,621,922 shares of Primedex common
stock and $42,950,000 in cash. Based upon Primedex's closing share
price on November 14, 2006, each Radiologix shareholder received $1.79
in cash for each Radiologix share, plus one share of Primedex common
stock for a total consideration of $4.59.

   Dr. Howard Berger, president and chief executive officer of
Primedex, stated, "The acquisition of Radiologix, which I hope will
bring long-term benefits to our shareholders, employees, and patients
alike, is a transforming event for our company. Despite this
transaction, which creates the largest operator of fixed imaging
centers, the $100 billion diagnostic imaging landscape remains highly
fragmented and full of further opportunity. I believe this acquisition
positions us in the near future to capitalize on the dynamic changes I
foresee in our industry in the years to come. I welcome the Radiologix
employees into the Primedex family and believe their future
contributions will be valuable for the continued success of our
company."

   The acquisition of Radiologix, a national provider of imaging
services headquartered in Dallas, Texas, allows Primedex to expand its
presence in California, and gives Primedex a concentrated platform
outside of California that it plans to optimize and grow. Primedex
will use the acquisition to further its strategies of geographic
clustering, exclusive capitation contracting and multi-modality
product offerings, which it will now be able to pursue on a national
scale.

   Bear, Stearns & Co. Inc. acted as exclusive financial advisor to
Radiologix with respect to the transaction. Jefferies & Company, Inc.
acted as exclusive financial advisor to Primedex with respect to the
transaction. Sheppard Mullin Richter & Hampton LLP acted as outside
legal counsel to Primedex and Haynes & Boone acted as outside legal
counsel to Radiologix with respect to the transaction.

   ABOUT PRIMEDEX HEALTH SYSTEMS, INC.

   Primedex Health Systems, Inc., is the California market leader in
providing high-quality, cost-effective diagnostic imaging services
through a network of fully-owned and operated outpatient imaging
centers. As of October 31, 2006, Primedex owned and operated 65
facilities. For its fiscal year ended October 31, 2006, Primedex and
its subsidiaries performed approximately 1,000,000 diagnostic imaging
procedures. At October 31, 2006, together with Beverly Radiology
Medical Group, the medical group that provides medical services to the
majority of the Company's locations, the Company had a total of 950
full-time and 375 part-time and per-diem employees. For more
information, visit www.radnet.com.

   FORWARD LOOKING STATEMENTS

   This press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Specifically, statements concerning the benefits of the proposed
transaction, expected synergies, anticipated future financial and
operating performance, and Primedex Health Systems' ability to
continue to grow the business by generating patient referrals and
contracts with radiology practices, recruiting and retaining
technologists, and receiving third-party reimbursement for diagnostic
imaging services, as well as Primedex's financial guidance, are
forward-looking statements within the meaning of the Safe Harbor.
Forward-looking statements are based on management's current,
preliminary expectations and are subject to risks and uncertainties
which may cause Primedex's actual results to differ materially from
the statements contained herein. These risks and uncertainties
include, among others, problems that may arise in successfully
integrating the businesses of the two companies; unexpected costs
involved in the transaction; the inability of the combined companies
to achieve cost-cutting synergies; future regulatory or legislative
actions in the industry; as well as those set forth in Primedex's
reports filed with the SEC, including its annual report on Form 10-K
for the year ended October 31, 2005, and Quarterly Reports on Form
10-Q for the quarters ended January 31, 2006, April 30, 2006 and July
31, 2006 and the joint proxy statement/prospectus dated October 20,
2006. Undue reliance should not be placed on forward-looking
statements, especially guidance on future financial performance, which
speaks only as of the date it is made. Primedex undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date they
were made, or to reflect the occurrence of unanticipated events.