Radiologix, Inc. Purchases and Retires Exclusive MRI Equipment Financing Contract

Radiologix, Inc. Purchases and Retires Exclusive MRI Equipment
Financing Contract
Transaction Will Be Accretive to Earnings 


DALLAS, Nov. 2  /PRNewswire-FirstCall/ -- Radiologix, Inc. (AMEX:RGX), a
leading national provider of diagnostic imaging services, today announced a
definitive agreement to purchase and retire a contract with an affiliate of
PresGar Medical Imaging, Inc. ("PresGar") that provides PresGar with an
exclusive and perpetual right to lease magnetic resonance imaging ("MRI")
equipment to a Radiologix subsidiary in Rochester, NY.  Radiologix also is
assuming debt and lease obligations for MRI equipment existing under this
contract.

Radiologix will pay PresGar $15.2 million in cash and will assume $300,000 of
debt to purchase and retire the contract.  Radiologix also will assume certain
operating leases on MRI equipment.

The obligations under this contract, along with the related imaging equipment,
were assumed by Radiologix with the acquisition of its Rochester subsidiary in
1997.  Lease payments under this contract are based on, and vary with, usage of
the equipment.

Radiologix anticipates that as a result of this transaction, its net operating
expenses, excluding depreciation and interest, could decrease by approximately
$4.5 million annually, and that earnings per basic share could increase by
approximately $0.07 annually, beginning November 1, 2004. Radiologix believes
that it will realize incremental savings in field rent and lease expense as
volume increases on this equipment.  The purchase of this contract and
equipment does not affect Radiologix's service fee revenue.

The definitive agreement for this transaction has an effective date of October
31, 2004.  Consummation of this transaction is subject to satisfaction of due
diligence and other customary pre-closing conditions.

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 94 diagnostic imaging centers located in 13 states as of June 30,
2004.

Forward-Looking Statements

This press release contains forward-looking statements that relate to future
financial results or business expectations and are made pursuant to Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, as amended.  Such statements give our current expectations or forecasts
of future events; they do not relate strictly to historical or current facts.

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
transactions and events described in this press release will happen 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 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:

   *  a decline in patient referrals;
   *  shifts in modality mix or the volume of procedures performed;
   *  the availability of technologists and other personnel;
   *  severe or adverse weather condition in our markets;
   *  changes in the rates or methods of third-party reimbursement for
      diagnostic imaging services;
   *  the loss of a high percentage of radiologists operating in our
      contracted radiology practices;
   *  the termination of our contracts with radiology practices;
   *  reduced operating margins due to our managed care contracts and
      capitated fee arrangements;
   *  the availability of additional capital to fund capital expenditure
      requirements;
   *  burdensome lawsuits against our contracted radiology practices and us;
   *  any failure by us 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 substantial indebtedness, debt service requirements and liquidity
      constraints;
   *  economic, demographic, business and other conditions in our markets;
   *  the highly competitive nature of the healthcare business; and
   *  risks related to our senior notes and healthcare securities generally.



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.

We cannot guarantee that any forward-looking statements will be realized,
although we believe we have been prudent in our plans and assumptions.
Achievement of future results is subject to risks, uncertainties and
potentially inaccurate assumptions.  Should known or unknown risks or
uncertainties materialize, or should underlying assumptions prove inaccurate,
actual results could vary materially from past results and those anticipated,
estimated or projected.  Investors should bear this in mind as they consider
forward-looking statements.

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 2,
2004.  Radiologix undertakes no obligation to update any forward- looking
statement or statements to reflect new events or circumstances or future
developments. 

DATASOURCE: Radiologix, Inc.



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

[phone], or  



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

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