Radiologix, Inc. Posts Strong Revenue Growth in Third Quarter 2004

Radiologix, Inc. Posts Strong Revenue Growth in Third Quarter
2004
Service Fee Revenue Grew 5.1% From Third Quarter 2003; 8.3% From Nine Months
2003 


DALLAS, Nov. 4  /PRNewswire-FirstCall/ -- Radiologix, Inc. (AMEX:RGX), a
leading national provider of diagnostic imaging services, today announced
financial results for its third quarter and nine months ended September 30,
2004.

Radiologix reported a net loss of $5.4 million, or $0.25 per diluted share for
the third quarter 2004, compared to a net loss of $646,000, or $0.03 per
diluted share for the third quarter 2003.  For the nine months ended September
30, 2004, Radiologix reported a net loss of $10.2 million, or $0.47 per diluted
share, compared to a net loss of $5.0 million, or $0.23 per diluted share for
the same period last year.

Income from continuing operations, excluding charges and San Antonio
operations, was $621,000, or $0.03 per diluted share for the third quarter
2004, compared to a loss of $705,000, or $0.03 loss per diluted share, for the
third quarter 2003.  Income from continuing operations, excluding charges, a
gain on sale of operations, and San Antonio operations, was $1.4 million, or
$0.06 per diluted share for the nine months ended September 30, 2004, compared
to a loss of $1.2 million, or $0.06 per diluted share, for the nine months
ended September 30, 2003.

Other financial results for the third quarter and nine months ended September
30, 2004 included:

  -- service fee revenue growth of 5.1% to $64.7 million, compared to
     $61.5 million for the third quarter 2003,

  -- income from continuing operations, excluding charges, of $0, or $0.00
     per diluted share, compared to $81,000, or $0.00 per diluted share, for
     the third quarter 2003,

  -- EBITDA from continuing operations, excluding charges, of $10.2 million,
     or 15.8% of service fee revenue, compared to $10.9 million, or 17.8% of
     service fee revenue, for the third quarter 2003,

  -- service fee revenue growth of 8.3% to $199.2 million, compared to
     $183.9 million for the nine months ended September 30, 2003,

  -- growth in income from continuing operations, excluding charges and a
     gain on sale of operations, to $1.8 million, or $0.08 per diluted
     share, from $1.2 million, or $0.06 per diluted share, for the nine
     months ended September 30, 2003,

  -- EBITDA from continuing operations, excluding charges and a gain on sale
     of operations, of $34.9 million, or 17.5% of service fee revenue,
     compared to $35.0 million, or 19.0% of service fee revenue, for the
     nine months ended September 30, 2003,

  -- cash and cash equivalents of $52.5 million at September 30, 2004,
     compared to $36.8 million at December 31, 2003,

  -- net debt (total debt less cash and cash equivalents) at September 30,
     2004, was $118.1 million, compared to net debt of $137.3 million at
     December 31, 2003.  Total debt at September 30, 2004 was
     $170.6 million, compared to total debt of $174.1 million at
     December 31, 2003, and

  -- days sales outstanding (DSOs) of 61 days at September 30, 2004,
     compared to 63 days at December 31, 2003.



EBITDA, or earning before interest, taxes, depreciation and amortization,
including equity in earnings of unconsolidated affiliates and minority
interests, is a non-GAAP financial measure that is defined, discussed and
reconciled below.

Results from the third quarter and nine months ended September 30, 2004,
excluding San Antonio operations, included:

  -- service fee revenue growth of 12.4% to $64.9 million, from
     $57.7 million for the third quarter 2003,

  -- growth in income from continuing operations, excluding charges, to
     $621,000, or $0.03 per diluted share, from a loss of $705,000, or $0.03
     loss per diluted share, for the third quarter 2003,

  -- EBITDA from continuing operations, excluding charges, of $11.2 million,
     or 17.2% of service fee revenue, compared to $9.3 million, or 16.1% of
     service fee revenue, for the third quarter 2003,

  -- service fee revenue growth of 12.2% to $193.3 million, from
     $172.3 million for the nine months ended September 30, 2003,

  -- growth in income from continuing operations, excluding charges, to
     $1.4 million, or $0.06 per diluted share, from a loss of $1.2 million,
     or $0.06 loss per diluted share, for the nine months ended
     September 30, 2003, and

  -- EBITDA from continuing operations, excluding charges and a gain on sale
     of operations, of $33.7 million, or 17.4% of service fee revenue,
     compared to $29.9 million, or 17.4% of service fee revenue, for the
     nine months ended September 30, 2003.



"Radiologix is in the midst of a major undertaking to improve operational and
financial results, and we accelerated this effort in the third quarter by
making and executing critical decisions.  These decisions are reflected in the
charges and special items recorded in our third quarter as well as our nine
month results," said Marvin S. Cadwell, chairman of the board of directors of
Radiologix and interim CEO.  "However, in analyzing these results, you will
note that Radiologix reported a strong third quarter and nine months this year.
 Our service fee revenue continues to show solid growth, we continue to
generate cash with stable DSOs, and we continue to make tangible strides in
rationalizing our operations.  We believe we are seeing the results of
improving operations in our core markets and disposing of non-core and
unprofitable operations."

Cash Flow

Cash flow from operating activities was $9.8 million for the third quarter
2004, compared to $12.9 million for the third quarter 2003.  Cash flow from
operating activities was $26.4 million for the nine months ended September 30,
2004, compared to $22.6 million for the nine months ended September 30, 2003.

Discontinued Operations

Radiologix continues to pursue its goal of either improving or disposing of
imaging centers that do not meet its strategic or profitability requirements.

During the third quarter 2004, Radiologix sold three Questar imaging centers
previously placed in discontinued operations, closed two other unprofitable
Questar imaging centers, and closed one unprofitable imaging center in New York
State.

Also during the third quarter 2004, Radiologix initiated discussions to sell
its 80% joint venture interest in its Questar Tampa operations.

Charges and Costs

During the third quarter 2004, Radiologix recorded the following pre-tax
amounts:

  -- a $6.5 million impairment to write off the unamortized portion of
     intangible assets related to the previously announced termination of a
     medical services agreement with a radiology practice in its Mid-
     Atlantic market,

  -- an $800,000 impairment to write off long-lived assets related to the
     previously announced closing of unprofitable three centers in its Mid-
     Atlantic market,

  -- a $300,000 impairment to write off assets damaged from the impact of
     hurricanes on its Southeastern operations,

  -- $405,000 for severance and other related costs related to the
     resignation in September 2004 of the company's former president
     and CEO,

  -- $315,000 for a lease termination related to diagnostic equipment no
     longer in use,

  -- $295,000 for costs associated with a litigation settlement, and

  -- $200,000 to write off software costs associated with canceling a
     software contract.

  Guidance


Radiologix has assessed the radiology sector of the healthcare industry, the
competitive landscape for radiology services, its operations, and its
opportunities for growth.

Radiologix believes that it can achieve diluted earnings per share from
continuing operations excluding charges and a gain on sale of operations of
$0.08 to $0.10 for 2004.

Radiologix currently anticipates capital expenditures for 2004 to range between
$40 million and $50 million, and that approximately one-third of this amount
would be funded by cash and two-thirds would be funded through lease lines.

Forward looking statements concerning fiscal year 2004 guidance relate to
future financial results or business expectations and, therefore, may prove to
be inaccurate due to changing or unexpected circumstances.  Fiscal year 2004
guidance is made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995.  Please read the "Forward-Looking Statements"
section below.

CEO Search

The Radiologix Board of Directors retained Korn/Ferry International to assist
with the previously discussed search for a chief executive officer for
Radiologix.  The Board of Directors anticipates that this search could take 90
to 180 days to complete.

GAAP and Non-GAAP Financial Information

This release contains certain financial information not derived in accordance
with GAAP, including EBITDA, and EBITDA from continuing operations. Radiologix
believes this information is useful to investors and other interested parties. 
Such information should not be considered as a substitute for any measures
calculated in accordance with GAAP, and may not be comparable to other
similarly titled measures of other companies.  Reconciliation of this
information to the most comparable GAAP measures is included in this release.

Conference Call

In connection with this press release, you are invited to listen to our
conference call with Marvin S. Cadwell, chairman and interim CEO, Sami S.
Abbasi, executive vice president and COO, and Richard J. Sabolik, senior vice
president and CFO, that will be broadcast live over the Internet on Thursday,
November 4, 2004, at 8:00 a.m., Central Time / 9:00 a.m. Eastern Time. You may
listen to the call via the Internet by navigating to Radiologix's Web site
(http://www.radiologix.com/) and from the "Investor Relations" drop-down menu,
click on "Conference Calls & Presentations."

If you are unable to participate during the live Webcast, the Third Quarter
2004 Results Conference Call will be archived on Radiologix's Web site
(http://www.radiologix.com/).  To access the replay, from the "Investor
Relations" drop-down menu, click on "Conference Calls & Presentations."

About Radiologix

Radiologix (http://www.radiologix.com/) is a leading national provider of
diagnostic imaging services, owning and operating multi-modality diagnostic
imaging centers that use advanced imaging technologies such as positron
emission tomography ("PET"), magnetic resonance imaging ("MRI"), computed
tomography ("CT") and nuclear medicine, as well as x-ray, general radiography,
mammography, ultrasound and fluoroscopy.  The diagnostic images created, and
the radiology reports based on these images, enable more accurate diagnosis and
more efficient management of illness for ordering physicians.  Radiologix owned
or operated 88 diagnostic imaging centers located in 13 states as of September
30, 2004.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act").  Forward-looking statements
include words such as "may," "will," "would," "could," "likely," "estimate,"
"intend," "plan," "continue," "believe," "expect" or "anticipate" and other
similar words, and include all discussions about our acquisition and
development plans.  We do not guarantee that the events described in this press
release will occur as described, or that any positive trends noted in this
press release will continue.

These forward-looking statements generally relate to our plans, objectives and
expectations for future operations and are based upon management's reasonable
estimates of future results or trends.  Although we believe that our plans and
objectives reflected in, or suggested by, such forward-looking statements are
reasonable, we may not achieve such plans or objectives.  You are cautioned not
to unduly rely on such forward-looking statements when evaluating the
information presented in this press release.  You should read this press
release completely and with the understanding that actual future results may be
materially different from what we expect.  We will not update forward-looking
statements even though our situation may change in the future. Specific factors
that might cause actual results to differ from our expectations include, but
are not limited to:

  -- economic, demographic, business and other conditions in our markets;

  -- the highly competitive nature of the healthcare business;

  -- changes in patient referral patterns;

  -- changes in the rates or methods of third-party reimbursement for
     diagnostic imaging services;

  -- changes in our contracts with radiology practice groups;

  -- changes in the number of radiologists operating in our contracted
     radiology practice groups;

  -- the ability to recruit and retain technologists;

  -- the availability of additional capital to fund capital expenditure
     requirements;

  -- lawsuits against Radiologix and our contracted radiology practice
     groups;

  -- changes in operating margins, particularly changes due to our managed
     care contracts and capitated fee arrangements;

  -- failure by Radiologix to comply with state and federal anti-kickback
     and anti-self referral laws or any other applicable healthcare
     regulations;

  -- changes in business strategy and development plans;

  -- changes in federal, state or local regulations affecting the healthcare
     industry;

  -- our indebtedness, debt service requirements and liquidity constraints;

  -- risks related to our Senior Notes and healthcare securities generally;
     and

  -- interruption of operations due to severe weather or other
     extraordinary events.



A more comprehensive list of such factors is set forth in the Company's Annual
Report on Form 10-K, as amended, for the year ended December 31, 2003, and our
other filings with the Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such
statement is made.  The information in this press release is as of November 4,
2004.  Radiologix undertakes no obligation to update any forward-looking
statement or statements to reflect new events or circumstances or future
developments.

                             Radiologix, Inc.
                       Consolidated Balance Sheets
                              (In thousands)

                                                  September 30, December 31,
                                                       2004         2003
                           ASSETS                  (Unaudited)
  CURRENT ASSETS:
    Cash and cash equivalents                         $52,532      $36,766
    Restricted cash                                     4,820           --
    Accounts receivable, net of allowances             56,396       58,746
    Due from affiliates                                 2,386        4,104
    Assets held for sale                                  620          251
    Other current assets                                7,333        7,571
      Total current assets                            124,087      107,438
  PROPERTY AND EQUIPMENT, net                          57,676       62,655
  INVESTMENTS IN JOINT VENTURES                         8,698       10,665
  GOODWILL                                              3,651       20,110
  INTANGIBLE ASSETS, net                               58,215       67,917
  DEFERRED FINANCING COSTS, net                         6,936        8,151
  DEFERRED INCOME TAXES                                 8,647           --
  OTHER ASSETS                                          1,443        2,200
      Total assets                                   $269,353     $279,136
            LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES:
    Accounts payable and other accrued expenses       $13,399      $11,986
    Accrued physician retention                         8,785        8,821
    Accrued salaries and benefits                       7,484        7,788
    Accrued interest                                    4,959          815
    Deferred income taxes                               3,891        1,797
    Current portion of capital lease obligations          314        1,438
    Current portion of long-term debt                      --          261
    Other current liabilities                             693          482
      Total current liabilities                        39,525       33,388
  DEFERRED INCOME TAXES                                    --        4,260
  LONG-TERM DEBT, net of current portion              158,270      160,000
  CONVERTIBLE DEBT                                     11,980       11,980
  CAPITAL LEASE OBLIGATIONS, net of current portion        --          376
  DEFERRED REVENUE                                      7,005        7,312
  OTHER LIABILITIES                                       900          319
      Total liabilities                               217,680      217,635
  COMMITMENTS AND CONTINGENCIES
  MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES         979          817
  STOCKHOLDERS' EQUITY:
    Common stock                                            2            2
    Treasury stock                                       (180)        (180)
    Additional paid-in capital                         14,155       13,942
    Retained earnings                                  36,717       46,920
      Total stockholders' equity                       50,694       60,684

      Total liabilities and stockholders' equity     $269,353     $279,136


                             Radiologix, Inc.
                  Consolidated Statements of Operations
                  (In thousands, except per share data)

                                     For the Three          For the Nine
                                     Months Ended           Months Ended
                                     September 30,          September 30,
                                     2004     2003         2004       2003

  SERVICE FEE REVENUE              $64,669    $61,508   $199,224   $183,913
  COSTS OF OPERATIONS:
    Cost of services                40,819     37,863    123,111    112,489
    Equipment lease                  4,576      4,318     14,005     13,030
    Provision for doubtful accounts  5,462      5,272     16,637     15,730
    Depreciation and amortization    5,914      6,418     18,905     19,450
      Gross profit                   7,898      7,637     26,566     23,214

  SEVERANCE AND OTHER RELATED COSTS    405         --        405      1,280
  CORPORATE GENERAL
   AND ADMINISTRATIVE                5,179      3,560     13,075     10,576
  IMPAIRMENT OF GOODWILL, INTANGIBLE
   AND
  LONG-LIVED ASSETS                  7,612         --     19,317         --
  GAIN ON SALE OF OPERATIONS            --         --     (4,669)        --
  INTEREST EXPENSE, NET              4,214      4,389     12,858     13,510

  LOSS BEFORE EQUITY IN EARNINGS OF
   UNCONSOLIDATED AFFILIATES,
   MINORITY INTERESTS IN CONSOLIDATED
   SUBSIDIARIES, INCOME TAXES
   AND DISCONTINUED OPERATIONS      (9,512)      (312)   (14,420)   (2,152)

  Equity In Earnings of Unconsolidated
   Affiliates                          983        647      2,336     3,159
  Minority Interests In Income of
   Consolidated Subsidiaries          (195)      (200)      (639)     (730)

  INCOME (LOSS) BEFORE
   INCOME TAXES AND
  DISCONTINUED OPERATIONS           (8,724)       135    (12,723)       277
  Income Tax Expense (Benefit)      (3,428)        54     (5,308)       111

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                       (5,296)        81     (7,415)       166
  Discontinued Operations:
    Loss from discontinued operations
     before income taxes              (150)    (1,211)    (4,646)    (8,577)
    Income tax benefit                 (60)      (484)    (1,858)    (3,431)
      Loss from
       discontinued operations         (90)      (727)    (2,788)    (5,146)


  NET LOSS                         $(5,386)     $(646)  $(10,203)   $(4,980)

  INCOME (LOSS) PER COMMON SHARE
    Income (loss) from continuing
     operations - basic             $(0.24)     $0.00     $(0.34)     $0.01
    Income (loss) from discontinued
     operations - basic              (0.01)     (0.03)     (0.13)     (0.24)
    Net income (loss)-basic         $(0.25)    $(0.03)    $(0.47)    $(0.23)
    Income (loss) from continuing
     operations - diluted           $(0.24)     $0.00     $(0.34)     $0.01
    Income (loss) from discontinued
     operations-diluted              (0.01)     (0.03)     (0.13)     (0.24)
      Net income (loss) - diluted   $(0.25)    $(0.03)    $(0.47)    $(0.23)

  WEIGHTED AVERAGE
   SHARES OUTSTANDING
    Basic                       21,805,607 21,741,317 21,780,557 21,710,702
    Diluted                     21,805,607 22,223,909 21,780,557 21,906,781


                             Radiologix, Inc.
             Reconciliation of Non-GAAP Financial Information
                  (In thousands, except per share data)

                                          For the Three    For the Nine
                                          Months Ended     Months Ended
                                          September 30,    September 30,
                                         2004     2003     2004      2003
  Service fee revenue                  $64,669  $61,508 $199,224  $183,913
  Income (loss) from continuing
   operations                           (5,296)      81   (7,415)      166
  Less: Income tax expense (benefit)    (3,428)      54   (5,308)      111
  Add:  Interest expense, net            4,214    4,389   12,858    13,510
  Add:  Depreciation and amortization    5,914    6,418   18,905    19,450
  EBITDA from continuing operations      1,404   10,942   19,040    33,237
  Add:  Severance and other related
        costs                              405       --      405     1,280
  Add:  Imp. of goodwill, intangible
        and long-lived assets            7,612       --   19,317        --
  Add:  Litigation settlement              295       --      295       500
  Add:  Charges related to contract
        cancellations                      515       --      515        --
  Less:  Gain on sale of operations         --       --   (4,669)       --
  EBITDA from continuing operations
   excluding charges                   $10,231  $10,942  $34,903   $35,017
  EBITDA from continuing operations
   excluding charges as a percent
   of service fee revenue                 15.8 %   17.8 %   17.5 %   19.0 %


  EBITDA


EBITDA (earnings before interest, taxes, depreciation and amortization,
including equity in earnings of unconsolidated affiliates and minority
interests) and EBITDA from continuing operations are non-GAAP financial
measures used as analytical indicators by Radiologix management and the
healthcare industry to assess business performance.  They also serve as
measures of leverage capacity and ability to service debt.

EBITDA and EBITDA from continuing operations should not be considered measures
of financial performance under GAAP, and the items excluded from EBITDA and
EBITDA from continuing operations should not be considered in isolation or as
an alternative to net income, cash flows generated by operating, investing, or
financing activities or other financial statement data presented in the
consolidated financial statements as an indicator of financial performance or
liquidity.

As EBITDA and EBITDA from continuing operations are not measurements determined
in accordance with GAAP and are therefore susceptible to varying methods of
calculation, these metrics, as presented, may not be comparable to other
similarly titled measures of other companies.

                                         For the Three       For the Nine
                                         Months Ended        Months Ended
                                         September 30,       September 30,
                                        2004      2003      2004      2003
  Net Income (loss)                  $(5,386)    $(646)  $(10,203) $(4,980)
  Less:  Income tax benefit from
         discontinued ops.                60       484      1,858    3,431
  Add:  Loss from discontinued
        operations                       150     1,211      4,646    8,577
  Income (loss) from continuing
   operations                         (5,296)       81     (7,415)     166
  Add:  Severance and other
        related costs(1)                 243        --        243      768
  Add:  Imp. of goodwill and
        long-lived assets(1)           4,567        --     11,590       --
  Add:  Litigation settlement(1)         177        --        177      300
  Add:  Charges related to
        contract cancellations(1)        309        --        309       --
  Add:  Gain on sale of
        operations(1)                     --        --     (3,081)      --
  Income from continuing
   operations excluding
   charges and gain                       --        81      1,823    1,234
  Fully diluted shares outstanding    21,806    22,224     21,781   21,907
  Income from continuing
   operations excluding charges
   and gain per share - diluted        $0.00     $0.00      $0.08    $0.06

  (1) Net of taxes

                             Radiologix, Inc.
 Reconciliation of Non-GAAP Financial Information, Excluding San Antonio
                                Operations
                  (In thousands, except per share data)

                                         For the Three     For the Nine
                                         Months Ended      Months Ended
                                         September 30,     September 30,
                                         2004     2003     2004      2003
  Service fee revenue                  $64,907  $57,731  $193,342 $172,310
  Loss from continuing operations       (4,675)    (705)   (7,826)  (2,291)
  Less: Income tax benefit              (3,108)    (350)   (5,520)  (1,154)
  Add:  Interest expense, net            4,214    4,303    12,743   13,225
  Add:  Depreciation and amortization    5,914    6,062    18,395   18,381
  EBITDA from continuing operations      2,345    9,310    17,791   28,161
  Add:  Severance and other related
        costs                              405       --       405    1,280
  Add:  Imp. of goodwill, intangible
        and long-lived assets            7,612       --    19,317       --
  Add:  Litigation settlement              295       --       295      500
  Add:  Charges related to contract
        cancellations                      515       --       515       --
  Less: Gain on sale of operations          --       --    (4,669)      --
  EBITDA from continuing operations
   excluding charges                   $11,172   $9,310   $33,655  $29,941
  EBITDA from continuing operations
   excluding charges as a percent
   of service fee revenue                 17.2 %   16.1 %    17.4 %   17.4 %


                                         For the Three      For the Nine
                                         Months Ended       Months Ended
                                         September 30,      September 30,
                                        2004      2003     2004      2003
  Net Income (loss)                   $(4,765) $(1,432) $(10,614)  $(7,437)
  Less:  Income tax benefit from
         discontinued ops.                 60      484     1,858     3,431
  Add:  Loss from discontinued
        operations                        150    1,211     4,646     8,577
  Loss from continuing operations      (4,675)    (705)   (7,826)   (2,291)
  Add:  Severance and other related
        costs(1)                          243       --       243       768
  Add:  Imp. of goodwill and
        long-lived assets(1)            4,567       --    11,590        --
  Add:  Litigation settlement(1)          177       --       177       300
  Add:  Charges related to contract
        cancellations(1)                  309       --       309        --
  Less:  Gain on sale of
         operations(1)                     --       --    (3,081)       --
  Income (loss) from continuing
   operations excluding charges and gain $621    $(705)   $1,412    (1,223)
  Fully diluted shares outstanding     21,806   22,224    21,781    21,907
  Income (loss) from continuing
   operations excluding charges
   and gain per share - diluted       $  0.03  $ (0.03)  $  0.06   $ (0.06)

  (1) Net of taxes


                             Radiologix, Inc.
Reconciliation of Financial Information, Excluding San Antonio Operations
                  (In thousands, except per share data)

                                         For the Three Months Ended
                                             September 30, 2004

                                                          Radiologix
                                                          Excluding
                                                  San         San    Percent
                                                Antonio     Antonio    of
                                  Radiologix  Operations  Operations Revenue
  SERVICE FEE REVENUE              $64,669       $(238)     $64,907    100%
  COSTS OF OPERATIONS:
    Cost of services                40,819         496       40,323   62.1
    Equipment lease                  4,576          --        4,576    7.1
    Provision for doubtful accounts  5,462         207        5,255    8.1
    Depreciation and amortization    5,914          --        5,914    9.1
      Gross profit                   7,898        (941)       8,839   13.6

    SEVERANCE AND OTHER RELATED COSTS  405          --          405    0.6
    CORPORATE GENERAL AND
     ADMINISTRATIVE                  5,179          --        5,179    8.0
    IMPAIRMENT OF GOODWILL, INTANGIBLE
     AND LONG-LIVED ASSETS           7,612          --        7,612   11.7
    INTEREST EXPENSE, NET            4,214          --        4,214    6.5

  LOSS BEFORE EQUITY IN EARNINGS OF
      UNCONSOLIDATED AFFILIATES,
       MINORITY
      INTERESTS IN CONSOLIDATED
       SUBSIDIARIES,
      INCOME TAXES AND DISCONTINUED
       OPERATIONS                   (9,512)       (941)       (8,571) (13.2)

  Equity In Earnings of
   Unconsolidated Affiliates           983          --           983    1.5
  Minority Interests In Income of
   Consolidated Subsidiaries          (195)         --          (195)  (0.3)

  INCOME (LOSS) BEFORE INCOME TAXES
   AND
  DISCONTINUED OPERATIONS           (8,724)       (941)       (7,783) (12.0)
  Income Tax Expense (Benefit)      (3,428)       (320)       (3,108)  (4.8)

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                       (5,296)       (621)       (4,675)  (7.2)
  Discontinued Operations:
    Loss from discontinued
     operations before income taxes   (150)         --          (150)  (0.2)
    Income tax benefit                 (60)         --           (60)  (0.1)
      Loss from discontinued
       operations                      (90)         --           (90)  (0.1)

  NET LOSS                         $(5,386)      $(621)      $(4,765)  (7.3)

  INCOME (LOSS) PER COMMON SHARE
    Income (loss) from continuing
     operations - basic             $(0.24)     $(0.03)       $(0.21)
    Income (loss) from discontinued
     operations - basic              (0.01)         --         (0.01)
      Net income (loss)-basic       $(0.25)     $(0.03)       $(0.22)
    Income (loss) from continuing
     operations - diluted           $(0.24)     $(0.03)       $(0.21)
    Income (loss) from discontinued
     operations-diluted              (0.01)         --         (0.01)
      Net income (loss) - diluted   $(0.25)     $(0.03)       $(0.22)

  WEIGHTED AVERAGE SHARES
   OUTSTANDING
    Basic                       21,805,607  21,805,607    21,805,607
    Diluted                     21,805,607  21,805,607    21,805,607


                             Radiologix, Inc.
Reconciliation of Financial Information, Excluding San Antonio Operations
                  (In thousands, except per share data)

                                        For the Three Months Ended
                                            September 30, 2003

                                                          Radiologix
                                                          Excluding
                                                 San         San     Percent
                                               Antonio     Antonio     of
                                 Radiologix   Operations  Operations Revenue
  SERVICE FEE REVENUE             $61,508      $3,777      $57,731     100%
  COSTS OF OPERATIONS:
    Cost of services               37,863       1,319       36,544     63.3
    Equipment lease                 4,318           4        4,314      7.5
    Provision for doubtful
     accounts                       5,272         567        4,705      8.1
    Depreciation and amortization   6,418         356        6,062     10.5
      Gross profit                  7,637       1,531        6,106     10.6

  SEVERANCE AND OTHER RELATED
   COSTS                               --          --           --       --
  CORPORATE GENERAL AND
   ADMINISTRATIVE                   3,560          --        3,560      6.2
  IMPAIRMENT OF GOODWILL,
   INTANGIBLE AND
   LONG-LIVED ASSETS                   --          --           --       --
  INTEREST EXPENSE, NET             4,389          86        4,303      7.5

  LOSS BEFORE EQUITY IN
   EARNINGS OF UNCONSOLIDATED
   AFFILIATES, MINORITY
   INTERESTS IN CONSOLIDATED
   SUBSIDIARIES, INCOME
   TAXES AND DISCONTINUED
   OPERATIONS                        (312)      1,445       (1,757)    (3.0)

  Equity In Earnings of
   Unconsolidated Affiliates          647        (211)         858      1.5
  Minority Interests In Income
   of Consolidated Subsidiaries      (200)        (44)        (156)    (0.3)

  INCOME (LOSS) BEFORE INCOME
   TAXES AND DISCONTINUED OPERATIONS  135       1,190       (1,055)    (1.8)
  Income Tax Expense (Benefit)         54         404         (350)    (0.6)

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                          81         786         (705)    (1.2)
  Discontinued Operations:
    Loss from discontinued
     operations before
     income taxes                  (1,211)         --        (1,211)   (2.1)
    Income tax benefit               (484)         --          (484)   (0.8)
      Loss from discontinued
       operations                    (727)         --          (727)   (1.3)

  NET LOSS                          $(646)       $786       $(1,432)   (2.5)

  INCOME (LOSS) PER COMMON
   SHARE
    Income (loss) from continuing
     operations-basic              $   --       $0.03        $(0.03)
    Income (loss) from
     discontinued
     operations - basic             (0.03)         --            --
    Net income (loss)-basic        $(0.03)      $0.03        $(0.06)
    Income (loss) from continuing
   operations - diluted            $   --       $0.03        $(0.03)
  Income (loss) from
   discontinued
   operations - diluted             (0.03)         --            --
  Net income (loss)- diluted       $(0.03)      $0.03        $(0.06)

  WEIGHTED AVERAGE SHARES
   OUTSTANDING
    Basic                      21,741,317  21,741,317    21,741,317
    Diluted                    22,223,909  22,223,909    22,223,909


                             Radiologix, Inc.
Reconciliation of Financial Information, Excluding San Antonio Operations
                  (In thousands, except per share data)

                                        For the Nine Months Ended
                                            September 30, 2004

                                                          Radiologix
                                                          Excluding
                                                 San         San     Percent
                                               Antonio     Antonio     of
                                 Radiologix   Operations  Operations Revenue
  SERVICE FEE REVENUE            $199,224      $5,882     $193,342      100%
  COSTS OF OPERATIONS:
    Cost of services              123,111       3,443      119,668     61.9
    Equipment lease                14,005           5       14,000      7.2
    Provision for doubtful
     accounts                      16,637       1,171       15,466      8.0
    Depreciation and amortization  18,905         510       18,395      9.5
      Gross profit                 26,566         753       25,813     13.4

  SEVERANCE AND OTHER
   RELATED COSTS                      405          --          405      0.2
  CORPORATE GENERAL AND
   ADMINISTRATIVE                  13,075          --       13,075      6.8
  IMPAIRMENT OF GOODWILL,
   INTANGIBLE AND
   LONG-LIVED ASSETS               19,317          --       19,317     10.0
  GAIN ON SALE OF OPERATIONS       (4,669)         --       (4,669)    (2.4)
  INTEREST EXPENSE, NET            12,858         115       12,743      6.6

  LOSS BEFORE EQUITY IN
   EARNINGS OF
   UNCONSOLIDATED
   AFFILIATES, MINORITY
   INTERESTS IN CONSOLIDATED
   SUBSIDIARIES, INCOME
   TAXES AND DISCONTINUED
   OPERATIONS                     (14,420)        638      (15,058)    (7.8)

  Equity In Earnings of
   Unconsolidated Affiliates        2,336         114        2,222      1.1
  Minority Interests In Income
   of Consolidated Subsidiaries      (639)       (129)        (510)    (0.3)

  INCOME (LOSS) BEFORE INCOME
   TAXES AND
   DISCONTINUED OPERATIONS        (12,723)        623      (13,346)    (6.9)
  Income Tax Expense (Benefit)     (5,308)        212       (5,520)    (2.9)

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                      (7,415)        411       (7,826)    (4.0)
  Discontinued Operations:
    Loss from discontinued
     operations before
     income taxes                  (4,646)         --       (4,646)    (2.4)
    Income tax benefit             (1,858)         --       (1,858)    (1.0)
      Loss from discontinued
       operations                  (2,788)         --       (2,788)    (1.4)

  NET LOSS                       $(10,203)       $411     $(10,614)    (5.5)

  INCOME (LOSS) PER COMMON SHARE
    Income (loss) from continuing
     operations-basic              $(0.34)      $0.02       $(0.36)
    Income (loss) from
     discontinued
     operations - basic             (0.13)         --        (0.13)
      Net income (loss) - basic    $(0.47)      $0.02       $(0.49)
    Income (loss) from continuing
     operations - diluted           $(0.34)     $0.02       $(0.36)
    Income (loss) from
     discontinued
     operations - diluted            (0.13)        --        (0.13)
      Net income (loss)-diluted     $(0.47)     $0.02       $(0.49)

  WEIGHTED AVERAGE SHARES
  OUTSTANDING
    Basic                       21,780,557 21,780,557   21,780,557
    Diluted                     21,780,557 21,780,557   21,780,557


                             Radiologix, Inc.
Reconciliation of Financial Information, Excluding San Antonio Operations
                  (In thousands, except per share data)

                                          For the Nine Months Ended
                                             September 30, 2003

                                                          Radiologix
                                                          Excluding
                                                 San         San     Percent
                                               Antonio     Antonio     of
                                 Radiologix   Operations  Operations Revenue
  SERVICE FEE REVENUE             $183,913    $11,603      $172,310    100%
  COSTS OF OPERATIONS:
    Cost of services               112,489      4,875       107,614    62.5
    Equipment lease                 13,030         11        13,019     7.6
    Provision for doubtful accounts 15,730      1,694        14,036     8.1
    Depreciation and amortization   19,450      1,069        18,381    10.7
      Gross profit                  23,214      3,954        19,260    11.2

  SEVERANCE AND OTHER RELATED
   COSTS                             1,280         --         1,280     0.7
  CORPORATE GENERAL AND
   ADMINISTRATIVE                   10,576         --        10,576     6.1
  IMPAIRMENT OF GOODWILL,
   INTANGIBLE AND
   LONG-LIVED ASSETS                    --         --            --      --
  INTEREST EXPENSE, NET             13,510        285        13,225     7.7

  LOSS BEFORE EQUITY IN EARNINGS
   OF UNCONSOLIDATED AFFILIATES,
   MINORITY INTERESTS IN
   CONSOLIDATED SUBSIDIARIES,
   INCOME TAXES AND
   DISCONTINUED OPERATIONS          (2,152)     3,669        (5,821)   (3.4)

  Equity In Earnings of
   Unconsolidated Affiliates         3,159        293         2,866     1.7
  Minority Interests In Income of
   Consolidated Subsidiaries          (730)      (240)         (490)   (0.3)

  INCOME (LOSS) BEFORE INCOME
   TAXES AND DISCONTINUED OPERATIONS   277      3,722        (3,445)   (2.0)
  Income Tax Expense (Benefit)         111      1,265        (1,154)   (0.7)

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                          166      2,457        (2,291)   (1.3)
  Discontinued Operations:
    Loss from discontinued
     operations before income taxes (8,577)        --        (8,577)   (5.0)
    Income tax benefit              (3,431)        --        (3,431)   (2.0)
    Loss from discontinued
     operations                     (5,146)        --        (5,146)   (3.0)
  NET LOSS                         $(4,980)    $2,457       $(7,437)   (4.3)

  INCOME (LOSS) PER COMMON SHARE
    Income (loss) from continuing
     operations - basic              $0.01      $0.11        $(0.10)
    Income (loss) from discontinued
     operations - basic              (0.24)        --         (0.24)
      Net income (loss) - basic     $(0.23)     $0.11        $(0.34)
    Income (loss) from continuing
     operations - diluted            $0.01      $0.11        $(0.10)
    Income (loss) from discontinued
     operations - diluted            (0.24)        --         (0.24)
      Net income (loss) - diluted   $(0.23)     $0.11        $(0.34)

  WEIGHTED AVERAGE SHARES
   OUTSTANDING
    Basic                       21,710,702   21,710,702  21,710,702
    Diluted                     21,906,781   21,906,781  21,906,781


DATASOURCE: Radiologix, Inc.



CONTACT:  Paul R. Streiber of Radiologix, Inc., Investor Relations,

[phone],  



Web site:  http://www.radiologix.com/ 

Copyright