Radiologix, Inc. Reports Second Quarter 2006 Results

DALLAS, Aug. 8  /PRNewswire-FirstCall/ -- Radiologix, Inc. (AMEX:RGX), a leading national provider of diagnostic imaging services, today announced financial results for its second quarter ended June 30, 2006.

   Select Financial Information
   (in thousands of dollars)    For the Three Months   For the Six Months
                                   Ended June 30,        Ended June 30,
                                   2006       2005        2006       2005
                                        (As restated)          (As restated)
  Service fee revenue           $65,129    $64,311    $130,246   $127,062
  Service fee revenue
   excluding terminated
   operations                   $65,129    $64,272    $130,246   $126,093

  EBITDA from continuing
   operations (A)               $11,008    $11,804     $23,744    $23,688
  EBITDA from continuing
   operations excluding
   terminated operations (A)    $11,016    $11,866     $23,737    $23,418

  Net income                       $241     $1,206      $2,277     $2,159
  Income from continuing
   operations                      $201     $1,176      $2,000     $2,563
  Income from continuing
   operations excluding
   terminated operations (A)       $209     $1,238      $1,993     $2,294

   (A)  As defined and reconciled below


  Second Quarter 2006 Results


For the second quarter ended June 30, 2006, service fee revenue was $65.1 million, compared to $64.3 million for the second quarter of 2005.  Radiologix earned net income of $200,000, or $0.01 per diluted share, compared to net income of $1.2 million or $0.05 per diluted share for the second quarter of 2005.

   *  Service fee revenue excluding terminated operations was $65.1 million,
      compared to $64.3 million for the second quarter of 2005.

   *  Income from continuing operations was $0.2 million, compared to $1.2
      million for the second quarter of 2005.

   *  Income from continuing operations excluding terminated operations was
      $0.2 million, compared to $1.2 million for the second quarter of 2005.

   *  EBITDA was $11.0 million, compared to $11.8 million for the second
      quarter of 2005.

   *  EBITDA excluding terminated operations was $11.0 million, compared to
      $11.9 million for the second quarter of 2005.

  Year to Date June 30, 2006 Results


For the six months ended June 30, 2006, service fee revenue was $130.2 million, compared to $127.1 million for the six months ended June 30, 2005. Radiologix earned net income of $2.3 million, or $0.10 per diluted share, compared to net income of $2.2 million or $0.10 per diluted share for the six months ended June 30, 2005.

   *  Service fee revenue excluding terminated operations was $130.2
      million, compared to $126.1 million for the six months ended June 30,
      2005.

   *  Income from continuing operations was $2.0 million, compared to $2.6
      million for the six months ended June 30, 2005.

   *  Income from continuing operations excluding terminated operations was
      $2.0 million, compared to $2.3 million for the six months ended June
      30, 2005.

   *  EBITDA was $23.7 million, compared to $23.7 million for the six months
      ended June 30, 2005.

   *  EBITDA excluding terminated operations was $23.7 million, compared to
      $23.4 million for the six months ended June 30, 2005.

  Restated 2005 Results


As we discussed in our 2005 Form 10-K, in addition to restating our financial statements for the year ended December 31, 2004, the Company restated its financial statements for each of the three quarters ended March 31, June 30, and September 30, 2005 to correct the accounting treatment of the PresGar equipment lease contract acquired on October 31, 2004, for $13.9 million.  This restatement also resulted in a revision of our tax expense for the three and six months ended June 30, 2005.  The impact of the restatement in the three months ended June 30, 2005 is a reduction in depreciation and amortization expense of $0.2 million, a reduction in income tax expense of $0.4 million, and an increase in net income of $0.6 million.  The impact of the restatement in the six months ended June 30, 2005 is a reduction in depreciation and amortization expense of $0.4 million, a reduction in income tax expense of $0.6 million, and an increase in net income of $1.0 million. The financial information contained in this press release reflects these restated amounts.

Charges and Gains

Radiologix recorded the following pre-tax charges and gains/losses to continuing operations, excluding terminated operations, during the second quarter of 2006 and 2005:

   *  $245,000 in the second quarter of 2006 and $0 in the second quarter of
      2005 to record litigation expenses;

   *  $360,000 in the second quarter of 2006 and $112,000 in the second
      quarter of 2005 to record compensation expense for restricted stock
      awards and stock options outstanding; and

   *  $55,000 loss in the second quarter of 2006 and $125,000 gain in the
      second quarter of 2005 to record gains/losses on sales of diagnostic
      imaging equipment.



For the six months ended June 30, 2006 and 2005, Radiologix recorded the following pre-tax charges and gains to continuing operations, excluding terminated operations:

   *  $245,000 for the six months ended June 30, 2006 and $0 for the six
      months ended June 30, 2005 to record litigation expenses;

   *  $747,000 for the six months ended June 30, 2006 and $213,000 for the
      six months ended June 30, 2005 to record compensation expense for
      restricted stock awards and stock options outstanding; and

   *  $752,000 for the six months ended June 30, 2006 and $450,000 for the
      six months ended June 30, 2005 to record net gains on sales of
      diagnostic imaging equipment.

  Income Taxes


Due to losses for the last three years, it is uncertain if our deferred tax assets will be realized.  Valuation allowances for net deferred tax assets were recorded in 2004 and 2005.  The tax provision of $0.1 million and $0.2 million for the three and six months ended June 30, 2006, respectively, is for state income taxes and federal alternative minimum tax.

Balance Sheet

Cash and cash equivalents were $43.7 million at June 30, 2006, compared to $36.0 million at December 31, 2005, primarily reflecting continued strong cash collections during the six months ended June 30, 2006.

Net debt (total debt less cash and cash equivalents and restricted cash) was $120.9 million at June 30, 2006, compared to net debt of $128.7 million at December 31, 2005.  Total debt was $170.3 million at June 30, 2006 and December 31, 2005.

Days sales outstanding (DSO) was 44 days for June 30, 2006 compared to 48 days for December 31, 2005.

"We are pleased with our second quarter financial and operational results, as they are in line with our internal expectations and targets.  While EBITDA for the quarter is lower than last year's results, this was expected as we concluded the implementation of our REWARD Program at our largest subsidiary, incurred start-up costs associated with the opening of two new imaging centers in California, and recorded $245,000 for litigation expenses," said Sami S. Abbasi, president and chief executive officer of Radiologix.  "In addition to our operating progress, we continue to make positive strides towards completing our merger with Primedex Health Systems, and expect to complete the merger during the fourth quarter of this year."

Plan of Merger With Primedex Health Systems, Inc.

On July 6, 2006, the Company entered into a Merger Agreement with Primedex Health Systems, Inc. in which a wholly owned subsidiary of Primedex will merge with and into Radiologix.  The transaction will create the largest owner and operator of fixed-site diagnostic imaging centers in the United States, with 131 locations.

Under the terms of the Merger Agreement, which has been approved by each company's Board of Directors, Radiologix shareholders will receive an aggregate consideration of 22,621,922 shares of Primedex common stock and $42.95 million in cash.  Based on the July 6 closing price of Primedex common stock of $1.75, each Radiologix shareholder would receive $1.84 in cash for each Radiologix share, plus one share of Primedex common stock for total consideration valued at $3.59.  Based upon the July 6 closing price of Primedex common stock of $1.75, Radiologix shareholders will collectively own approximately 33% of the Primedex shares on a fully diluted basis.

The merger is expected to be completed in the second half of 2006, subject to regulatory approvals, the approvals of Primedex's and Radiologix's stockholders, as well as other customary closing conditions.

Sarbanes-Oxley Section 404

As noted in our 2005 Form 10-K, subsequent to December 31, 2005, but prior to the finalization of our 2005 consolidated financial statements, Radiologix placed into operation new controls to address the material weakness we identified in our accounting for lease terminations.  These new controls include a more thorough and detailed review of material unusual transactions by senior financial officers, and outside accounting experts if deemed necessary.

We believe these new controls have remediated the material weakness that existed as of December 31, 2005, and that these controls operated effectively during the six months ended June 30, 2006.

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not derived in accordance with GAAP.  Radiologix uses both GAAP and non-GAAP metrics to measure its financial results.  We believe that, in addition to GAAP metrics, these non-GAAP metrics assist Radiologix in measuring its cash-based performance.

Radiologix believes this information is useful to investors and other interested parties because it removes unusual and nonrecurring charges that occur in the affected period and provides a basis for measuring the Company's financial condition against other quarters.

As Radiologix has historically reported non-GAAP results to the investment community, management also believes the inclusion of non-GAAP measures provides consistency in its financial reporting.

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.  Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.  Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables below.

Income from continuing operations is defined as income from continuing operations calculated in accordance with GAAP.

Income from continuing operations excluding terminated operations is defined as income from continuing operations excluding terminated San Antonio and certain Mid-Atlantic operations.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization, each from continuing operations, plus restricted stock compensation expense, and is reconciled to its nearest comparable GAAP financial measure.

EBITDA from continuing operations excluding terminated operations is defined as EBITDA excluding terminated San Antonio and certain Mid-Atlantic operations.

EBITDA and EBITDA from continuing operations excluding terminated 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 excluding terminated operations should not be considered measures of financial performance under GAAP, and the items excluded from EBITDA and EBITDA from continuing operations excluding terminated 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 excluding terminated 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.

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 69 diagnostic imaging centers located in 7 states as of June 30, 2006.

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;
   *  interruption of operations due to severe weather or other
      extraordinary events;
   *  charges for unusual or infrequent (non-recurring) matters; and
   *  risks related to certain closing provisions of the merger with
      Primedex that, if not satisfied or waived, will result in the merger
      not being completed.



A more comprehensive list of such factors is set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, 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 August 8, 2006.  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)

                                                     June 30,   December 31,
                                                        2006         2005
                          ASSETS                    (Unaudited)
  CURRENT ASSETS:
    Cash and cash equivalents                        $43,671      $36,004
    Restricted cash                                    5,750        5,662
    Accounts receivable, net of allowances            41,237       40,815
    Due from affiliates                                  704        1,737
    Federal and state income tax receivable            6,101        6,189
    Other current assets                               4,643        5,491
      Total current assets                          $102,106      $95,898
  Property and equipment, net                         68,610       67,965
  Investments in joint ventures                        9,113       10,597
  Intangible assets, net                              52,384       54,050
  Deferred financing costs, net                        4,117        4,942
  Other assets                                           824        1,076
      Total assets                                  $237,154     $234,528

          LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES:
    Accounts payable and other accrued expenses       $8,777      $10,157
    Accrued physician retention                        8,115        7,051
    Accrued salaries and benefits                      7,767        6,987
    Accrued interest                                     683          685
    Current maturities of capital lease obligations       33           32
    Other current liabilities                            682          477
      Total current liabilities                      $26,057      $25,389
  Long-term debt, net of current portion             158,270      158,270
  Convertible debt                                    11,980       11,980
  Capital lease obligations, net of current portion       45           62
  Deferred revenue                                     6,290        6,494
  Other liabilities                                    1,372        1,488
      Total liabilities                             $204,014     $203,683

  Commitments and contingencies
  Minority interests in consolidated subsidiaries      1,145        1,874
  STOCKHOLDERS' EQUITY:
    Common stock                                           2            2
    Treasury stock                                      (180)        (180)
    Additional paid-in capital                        16,362       15,615
    Retained earnings                                 15,811       13,534
      Total stockholders' equity                     $31,995      $28,971
      Total liabilities and stockholders' equity    $237,154     $234,528



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

                               For the Three Months       For the Six Months
                                   Ended June 30,           Ended June 30,
                                 2006         2005          2006       2005
                                      (As restated)            (As restated)
  Service fee revenue         $65,129      $64,311      $130,246   $127,062
  Costs of operations:
    Cost of services           41,332       40,629        81,248     80,449
    Equipment lease             3,886        3,231         7,642      6,037
    Provision for doubtful
     accounts                   5,608        4,659        10,887      9,126
    Depreciation and
     amortization               6,054        5,858        12,024     11,502
      Gross profit             $8,249       $9,934      $ 18,445    $19,948

  Corporate general
   and administrative           4,448        4,985         9,164      9,333
  Interest expense, net,
   including amortization
   of deferred financing
   costs                        4,326        4,565         8,803      9,241

  Income (loss) before equity
   in earnings of unconsolidated
   affiliates, minority
   interests in consolidated
   subsidiaries, income taxes
   and discontinued
   operations                  $ (525)     $   384     $     478     $1,374

  Equity in earnings
   of investments               1,025        1,039         2,070      1,661
  Minority interests in
   income of consolidated
   subsidiaries                  (232)        (154)         (378)      (303)

  INCOME BEFORE INCOME TAXES
   AND DISCONTINUED OPERATIONS $  268      $ 1,269     $   2,170     $2,732
  Income tax expense               67           93           170        169
  INCOME FROM CONTINUING
   OPERATIONS                  $  201      $ 1,176     $   2,000     $2,563

  Discontinued Operations:
    Income (loss) from
     discontinued operations
     before income taxes           40           30           277       (404)
    Income tax expense (benefit)  ---          ---           ---        ---
       Income (loss) from
        discontinued
        operations             $   40       $   30      $    277     $ (404)
  NET INCOME                   $  241       $1,206      $  2,277     $2,159

  INCOME PER COMMON SHARE
    Income from continuing
     operations-basic          $ 0.01       $ 0.05      $   0.09     $ 0.12
    Income (loss) from
     discontinued
     operations-basic          $ 0.00       $ 0.00      $   0.01     $(0.02)
       Net income-basic        $ 0.01       $ 0.05      $   0.10     $ 0.10
    Income from continuing
     operations-diluted        $ 0.01       $ 0.05      $   0.09     $ 0.12
    Income (loss) from
     discontinued
     operations-diluted        $ 0.00       $ 0.00      $   0.01     $(0.02)
       Net income-diluted      $ 0.01       $ 0.05      $   0.10     $ 0.10

  WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic                  22,242,417   22,339,815    22,242,417 22,128,425
    Diluted                22,309,365   22,572,909    22,316,713 22,625,931



                               Radiologix, Inc.
               Reconciliation of Non-GAAP Financial Information
                                (In thousands)

  Reconciliation of Income from Continuing Operations
   to EBITDA from Continuing Operations
                               For the Three Months      For the Six Months
                                  Ended June 30,            Ended June 30,
                                 2006        2005           2006        2005
                                     (As restated)             (As restated)
  GAAP: Income from
   continuing operations    $     201   $   1,176      $   2,000    $  2,563
  Add: Income tax expense          67          93            170         169
  Add: Interest expense, net    4,326       4,565          8,803       9,241
  Add: Depreciation
   and amortization             6,054       5,858         12,024      11,502
  Add:  Restricted stock
   compensation expense           360         112            747         213
  EBITDA from
   continuing operations    $  11,008   $  11,804      $  23,744    $ 23,688



                               Radiologix, Inc.
    Reconciliation of Non-GAAP Financial Information, Excluding Terminated
                                  Operations
                                (In thousands)

  Reconciliation of Income from Continuing Operations
   to EBITDA from Continuing Operations,
   Excluding Terminated Operations
                               For the Three Months      For the Six Months
                                  Ended June 30,            Ended June 30,
                                 2006        2005          2006        2005
                                     (As restated)             (As restated)

  GAAP: Income from continuing
   operations, excluding
   terminated operations    $     209   $   1,238      $   1,993    $  2,294
  Add: Income tax expense          67          93            170         169
  Add:  Interest expense, net   4,326       4,565          8,803       9,241
  Add:  Depreciation
   and amortization             6,054       5,858         12,024      11,501
  Add:  Restricted stock
   compensation expense           360         112            747         213
  EBITDA from continuing
   operations excluding
   terminated operations    $  11,016   $  11,866      $  23,737    $ 23,418



                               Radiologix, Inc.
   Reconciliation of Financial Information, Excluding Terminated Operations
                                (In thousands)

                               For the Three Months Ended June 30, 2006
                                          Terminated    Radiologix Excluding
                            Radiologix    Operations   Terminated Operations
  Service fee revenue       $   65,129   $       ---       $      65,129
  Costs of operations:
    Cost of services            41,332            13              41,319
    Equipment lease              3,886             2               3,884
    Provision for
     doubtful accounts           5,608            (7)              5,615
    Depreciation and
     amortization                6,054           ---               6,054
       Gross profit         $    8,249   $        (8)      $       8,257

  Corporate general
   and administrative            4,448           ---               4,448
  Interest expense, net,
   including amortization
   of deferred financing costs   4,326           ---               4,326

  Income (loss) before equity
   in earnings of unconsolidated
   affiliates, minority interests
   in consolidated subsidiaries,
   income taxes and
   discontinued operations  $     (525)  $        (8)      $        (517)

  Equity in earnings of
   unconsolidated affiliates     1,025           ---               1,025

  Minority interests
   in income of consolidated
   subsidiaries                   (232)          ---                (232)

  INCOME (LOSS) BEFORE INCOME
   TAXES AND DISCONTINUED
   OPERATIONS               $      268    $       (8)      $         276

  Income tax expense                67           ---                  67

  INCOME (LOSS) FROM
   CONTINUING OPERATIONS    $      201    $       (8)      $         209



                               Radiologix, Inc.
   Reconciliation of Financial Information, Excluding Terminated Operations
                                (In thousands)

                                 For the Three Months Ended June 30, 2005
                                              (As restated)

                            Radiologix  Terminated      Radiologix Excluding
                                        Operations     Terminated Operations
  Service fee revenue       $   64,311    $     39         $   64,272
  Costs of operations:
    Cost of services            40,629          84             40,545
    Equipment lease              3,231          18              3,213
    Provision for
     doubtful accounts           4,659          (1)             4,660
    Depreciation and
     amortization                5,858         ---              5,858
       Gross profit         $    9,934    $    (62)        $    9,996

  Corporate general
   and administrative            4,985         ---              4,985
  Interest expense, net,
    including amortization
    of deferred financing costs  4,565         ---              4,565

  Income (loss) before
   equity in earnings of
   unconsolidated affiliates,
   minority interests in
   consolidated subsidiaries,
   Income taxes and discontinued
   operations               $      384    $    (62)        $      446

  Equity in earnings
   of unconsolidated
   affiliates                    1,039         ---              1,039

  Minority interests in
   income of consolidated
   subsidiaries                   (154)        ---               (154)

  INCOME (LOSS) BEFORE
   INCOME TAXES AND
   DISCONTINUED OPERATIONS  $    1,269    $    (62)        $    1,331

  Income tax expense                93         ---                 93

  INCOME (LOSS) FROM
   CONTINUING OPERATIONS    $    1,176    $    (62)        $    1,238



                               Radiologix, Inc.
   Reconciliation of Financial Information, Excluding Terminated Operations
                                (In thousands)

                                 For the Six Months Ended June 30, 2006

                            Radiologix  Terminated      Radiologix Excluding
                                        Operations     Terminated Operations
  Service fee revenue       $  130,246    $    ---         $  130,246
  Costs of operations:
    Cost of services            81,248          15             81,233
    Equipment lease              7,642           8              7,634
    Provision for
     doubtful accounts          10,887         (30)            10,917
    Depreciation and
     amortization               12,024         ---             12,024
       Gross profit         $   18,445    $      7         $   18,438

  Corporate general
   and administrative            9,164         ---              9,164
  Interest expense, net,
   including amortization of
   deferred financing costs      8,803         ---              8,803

  Income before equity in
   earnings of unconsolidated
   affiliates, minority interests
   n consolidated subsidiaries,
   Income taxes and
   discontinued operations  $      478    $      7         $      471

  Equity in earnings of
   unconsolidated affiliates     2,070         ---              2,070

  Minority interests in
   income of consolidated
   subsidiaries                   (378)        ---               (378)

  INCOME BEFORE INCOME TAXES
   AND DISCONTINUED
   OPERATION                $    2,170    $      7         $    2,163

  Income tax expense               170         ---                170

  INCOME FROM
   CONTINUING OPERATIONS    $    2,000    $      7         $    1,993



                               Radiologix, Inc.
   Reconciliation of Financial Information, Excluding Terminated Operations
                                (In thousands)

                                 For the Six Months Ended June 30, 2005
                                             (As restated)

                            Radiologix    Terminated    Radiologix Excluding
                                          Operations   Terminated Operations
  Service fee revenue       $  127,062    $    969         $  126,093
  Costs of operations:
    Cost of services            80,449         438             80,011
    Equipment lease              6,037          18              6,019
    Provision for
     doubtful accounts           9,126         243              8,883
    Depreciation and
     amortization               11,502           1             11,501
        Gross profit        $   19,948    $    269         $   19,679

  Corporate general
   and administrative            9,333         ---              9,333
  Interest expense, net,
   including amortization
   of deferred financing costs   9,241         ---              9,241

  Income before equity in
   earnings of unconsolidated
   affiliates, minority interests
   in consolidated subsidiaries,
   Income taxes and
   discontinued operations  $    1,374    $    269         $    1,105

  Equity in earnings of
   unconsolidated affiliates     1,661         ---              1,661

  Minority interests in
   income of consolidated
   subsidiaries                   (303)        ---               (303)

  INCOME BEFORE INCOME TAXES
   AND DISCONTINUED
   OPERATIONS               $    2,732    $    269         $    2,463

  Income tax expense               169         ---                169

  INCOME FROM
   CONTINUING OPERATIONS    $    2,563    $    269         $    2,294


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DATASOURCE: Radiologix, Inc.



CONTACT:  Michael N. Murdock, Chief Financial Officer of Radiologix,

Inc., [phone], or  



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

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