Radiologix, Inc. Reports Third Quarter 2006 Results

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

  Select Financial Information
  (in thousands of dollars)

                          For the Three Months       For the Nine Months
                          Ended September 30,        Ended September 30,
                           2006         2005         2006         2005
                                    (As restated)             (As restated)


  Service fee revenue    $63,643      $62,259     $193,889     $189,320
  Service fee revenue
   excluding terminated
    operations           $63,643      $62,258     $193,889     $188,352

  EBITDA from continuing
   operations(A)         $11,646      $11,166      $35,390      $34,854
  EBITDA from continuing
   operations excluding
    terminated
     operations(A)       $11,630      $11,222      $35,367      $34,640

  Net income (loss)        $(714)       $(365)      $1,563       $1,794
  Income (loss) from
   continuing operations   $(732)        $217       $1,268       $2,780
  Income (loss) from
   continuing operations
    excluding terminated
     operations(A)         $(748)        $254       $1,245       $2,655

  (A)  As defined and reconciled below

  Third Quarter 2006 Results


For the third quarter ended September 30, 2006, service fee revenue was $63.6 million, compared to $62.3 million for the third quarter of 2005. Radiologix incurred a net loss of $714,000, or $0.03 per diluted share, compared to a net loss of $365,000 or $0.02 per diluted share for the third quarter of 2005.

   *  Service fee revenue excluding terminated operations was $63.6 million,
      compared to $62.3 million for the third quarter of 2005.

   *  Loss from continuing operations was $732,000, compared to income of
      $217,000 for the third quarter of 2005.

   *  Loss from continuing operations excluding terminated operations was
      $748,000, compared to income of $254,000 for the third quarter of
      2005.

   *  EBITDA was $11.6 million, compared to $11.2 million for the third
      quarter of 2005.

   *  EBITDA excluding terminated operations was $11.6 million, compared to
      $11.2 million for the third quarter of 2005.

  Year to Date September 30, 2006 Results


For the nine months ended September 30, 2006, service fee revenue was $193.9 million, compared to $189.3 million for the nine months ended September 30, 2005.  Radiologix earned net income of $1.6 million, or $0.07 per diluted share, compared to net income of $1.8 million or $0.08 per diluted share for the nine months ended September 30, 2005.

   *  Service fee revenue excluding terminated operations was $193.9
      million, compared to $188.4 million for the nine months ended
      September 30, 2005.

   *  Income from continuing operations was $1.3 million, compared to $2.8
      million for the nine months ended September 30, 2005.

   *  Income from continuing operations excluding terminated operations was
      $1.2 million, compared to $2.7 million for the nine months ended
      September 30, 2005.

   *  EBITDA was $35.4 million, compared to $34.9 million for the nine
      months ended September 30, 2005.

   *  EBITDA excluding terminated operations was $35.4 million, compared to
      $34.6 million for the nine months ended September 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 nine months ended September 30, 2005.  The impact of the restatement in the three months ended September 30, 2005 is a reduction in depreciation and amortization expense of $0.2 million, an increase in income tax expense of $0.4 million, and a reduction in net income of $0.2 million. The impact of the restatement in the nine months ended September 30, 2005 is a reduction in depreciation and amortization expense of $0.6 million, a reduction in income tax expense of $0.2 million, and an increase in net income of $0.8 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 to continuing operations, excluding terminated operations, during the third quarter of 2006 and 2005:

   *  $1.0 million in the third quarter of 2006 and zero in the third
      quarter of 2005 to record expenses related to the pending merger with
      Primedex Health Systems, Inc. (See below);

   *  $388,000 in the third quarter of 2006 and $182,000 in the third
      quarter of 2005 to record stock based compensation expense; and

   *  $105,000 gain in the third quarter of 2006 and zero gain in the third
      quarter of 2005 to record net gains on sales of diagnostic imaging
      equipment.



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

   *  $1.0 million for the nine months ended September 30, 2006 and zero for
      the nine months ended September 30, 2005 to record expenses related to
      the pending merger with Primedex Health Systems, Inc. (See below);

   *  $1.1 million for the nine months ended September 30, 2006 and $395,000
      for the nine months ended September 30, 2005 to record stock based
      compensation expense; and

   *  $857,000 gain for the nine months ended September 30, 2006 and
      $651,000 gain for the nine months ended September 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 $0.2 million and $0.4 million for the three and nine months ended September 30, 2006, respectively, is for state income taxes and federal alternative minimum tax.

Balance Sheet

Cash and cash equivalents were $49.8 million at September 30, 2006, compared to $36.0 million at December 31, 2005, primarily reflecting continued strong cash collections during the nine months ended September 30, 2006.

Net debt (total debt less cash and cash equivalents and restricted cash) was $114.8 million at September 30, 2006, compared to net debt of $128.7 million at December 31, 2005.  Total debt was $170.3 million at September 30, 2006 and December 31, 2005.

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

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 upon the closing price of $2.69 for Primedex common stock as of October 6, 2006, the record date for the stockholder meetings, each Radiologix stockholder would receive $1.78 in cash for each Radiologix share, plus one share of Primedex common stock for total consideration valued at $4.47 per share.  Upon completion of the merger, we estimate that, subject to adjustment as described above, Radiologix's former stockholders will own approximately 33.9% of the outstanding shares of Primedex common stock, based on the number of shares of Radiologix and Primedex common stock outstanding on the record date.

The merger is expected to be completed on November 15, 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 nine months ended September 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 68 diagnostic imaging centers located in 7 states as of September 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 November 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)


                                                 September 30,  December 31,
                                                     2006           2005
                   ASSETS                        (Unaudited)
  CURRENT ASSETS:
      Cash and cash equivalents                    $49,753        $36,004
      Restricted cash                                5,800          5,662
      Accounts receivable, net of allowances        42,500         40,815
      Due from affiliates                              705          1,737
      Federal and state income tax receivable        6,064          6,189
      Other current assets                           4,993          5,491
         Total current assets                     $109,815        $95,898
  Property and equipment, net                       64,893         67,965
  Investments in joint ventures                      9,757         10,597
  Intangible assets, net                            51,551         54,050
  Deferred financing costs, net                      3,704          4,942
  Other assets                                         586          1,076
         Total assets                             $240,306       $234,528

            LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES:
      Accounts payable and other accrued expenses   $7,931        $10,157
      Accrued physician retention                    7,536          7,051
      Accrued salaries and benefits                  8,335          6,987
      Accrued interest                               4,836            685
      Current maturities of capital lease
       obligations                                      34             32
      Other current liabilities                        409            477
         Total current liabilities                 $29,081        $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     36             62
  Deferred revenue                                   6,187          6,494
  Other liabilities                                  1,915          1,488
         Total liabilities                        $207,469       $203,683

  Commitments and contingencies
  Minority interests in consolidated subsidiaries    1,168          1,874
  STOCKHOLDERS' EQUITY:
      Common stock                                       2              2
      Treasury stock                                  (180)          (180)
      Additional paid-in capital                    16,750         15,615
      Retained earnings                             15,097         13,534
         Total stockholders' equity                $31,669        $28,971
         Total liabilities and stockholders'
          equity                                  $240,306       $234,528



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

                         For the Three Months      For the Nine Months
                         Ended September 30,       Ended September 30,
                           2006         2005         2006        2005
                                    (As restated)            (As restated)
  Service fee revenue    $63,643      $62,258     $193,889     $189,320
  Costs of operations:
    Cost of services      40,387       40,389      121,635      120,838
    Equipment lease        4,111        3,545       11,753        9,582
    Provision for
     doubtful accounts     5,489        4,521       16,376       13,647
    Depreciation and
     amortization          6,432        5,931       18,456       17,433
         Gross profit     $7,224       $7,872      $25,669      $27,820

  Merger costs             1,049          ---        1,049          ---
  Corporate general and
   administrative          3,174        3,862       12,338       13,195
  Interest expense, net,
   including amortization
    of deferred financing
     costs
                           4,325        4,561       13,128       13,802

  Income (loss) before
   equity in earnings of
   unconsolidated
   affiliates, minority
   interests in
   consolidated
   subsidiaries,
   income taxes and
   discontinued
   operations            $(1,324)       $(551)       $(846)        $823

  Equity in earnings of
   investments               939        1,227        3,009        2,888
  Minority interests in
   income of consolidated
    subsidiaries            (163)        (184)        (541)        (487)

  INCOME (LOSS) BEFORE
   INCOME TAXES AND
    DISCONTINUED OPERATION $(548)        $492       $1,622       $3,224
  Income tax expense         184          275          354          444
  INCOME (LOSS) FROM
   CONTINUING OPERATIONS   $(732)        $217       $1,268       $2,780

  Discontinued Operations:
    Income (loss) from
     discontinued operations
     before income taxes      18         (582)         295         (986)
    Income tax expense       ---          ---          ---          ---
    Income (loss) from
     discontinued
     operations              $18        $(582)        $295        $(986)
  NET INCOME (LOSS)        $(714)       $(365)      $1,563       $1,794

  INCOME (LOSS) PER COMMON SHARE

    Income (loss) from
     continuing operations
      -basic              $(0.03)       $0.01        $0.06        $0.13
    Income (loss) from
     discontinued operations
      -basic                $---       $(0.03)       $0.01       $(0.05)
        Net income (loss)
          -basic          $(0.03)      $(0.02)       $0.07        $0.08
  Income (loss) from
   continuing operations
    -diluted              $(0.03)       $0.01        $0.06        $0.13
  Income (loss) from
   discontinued
    operations-diluted      $---       $(0.03)       $0.01       $(0.05)
      Net income (loss)
       -diluted           $(0.03)      $(0.02)       $0.07        $0.08

  WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic             22,242,417   22,138,145   22,242,417   22,030,959
    Diluted           22,242,417   22,411,042   22,279,253   22,342,653



                             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 Nine Months
                          Ended September 30,         Ended September 30,
                            2006         2005         2006          2005
                                     (As restated)             (As restated)
  GAAP: Income (loss)
   from continuing
   operations              $(732)        $217       $1,268        $2,780
  Add: Income tax expense    184          275          354           444
  Add: Interest expense,
   net                     4,325        4,561       13,128        13,802
  Add: Depreciation and
   amortization            6,432        5,931       18,456        17,433
  Add: Restricted stock
   compensation expense      388          182        1,135           395
  Add: Merger costs        1,049          ---        1,049           ---
  EBITDA from continuing
   operations            $11,646      $11,166      $35,390       $34,854



                             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 Nine Months
                            Ended September 30,      Ended September 30,
                            2006         2005         2006         2005
                                     (As restated)            (As restated)
  GAAP: Income (loss) from
   continuing operations,
   excluding terminated
   operations              $(748)        $254       $1,245       $2,655
  Add: Income tax expense    184          295          354          357
  Add: Interest expense,
   net                     4,325        4,560       13,128       13,801
  Add: Depreciation
   and amortization        6,432        5,931       18,456       17,432
  Add: Restricted stock
   compensation expense      388          182        1,135          395
  Add: Merger costs        1,049          ---        1,049          ---
  EBITDA from continuing
   operations excluding
   terminated
   operations            $11,630      $11,222      $35,367      $34,640



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

                             For the Three Months Ended September 30, 2006
                                                               Radiologix
                                                               Excluding
                                                 Terminated    Terminated
                                   Radiologix    Operations    Operations
  Service fee revenue               $63,643        $---         $63,643
  Costs of operations:
    Cost of services                 40,387           1          40,386
    Equipment lease                   4,111         ---           4,111
    Provision for doubtful accounts   5,489         (17)          5,506
    Depreciation and amortization     6,432         ---           6,432
         Gross profit                $7,224         $16          $7,208

  Merger costs                        1,049         ---           1,049
  Corporate general and
   administrative                     3,174         ---           3,174
  Interest expense, net,
   including amortization
   of deferred financing costs        4,325         ---           4,325

  Income (loss) before equity in
   earnings of unconsolidated
   affiliates, minority interests
   in consolidated subsidiaries,
   income taxes and discontinued
   operations                       $(1,324)        $16         $(1,340)

  Equity in earnings of
   unconsolidated affiliates            939         ---             939

  Minority interests in income
   of consolidated subsidiaries        (163)        ---            (163)

  INCOME (LOSS) BEFORE INCOME
   TAXES AND DISCONTINUED OPERATIONS  $(548)        $16           $(564)

  Income tax expense                    184         ---             184

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                         $(732)        $16           $(748)



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

                             For the Three Months Ended September 30, 2005
                                            (As restated)
                                                            Radiologix
                                                            Excluding
                                              Terminated    Terminated
                                Radiologix    Operations    Operations
  Service fee revenue             $62,258          $(1)      $62,259
  Costs of operations:
    Cost of services               40,389           48        40,341
    Equipment lease                 3,545            8         3,537
    Provision for doubtful accounts 4,521           (1)        4,522
    Depreciation and amortization   5,931          ---         5,931
      Gross profit                 $7,872         $(56)       $7,928

  Merger costs                        ---          ---           ---
  Corporate general and
   administrative                   3,862          ---         3,862
  Interest expense, net, including
   amortization of deferred
   financing costs                  4,561            1         4,560

  Loss before equity in earnings
   of unconsolidated
   affiliates, minority interests
   in consolidated subsidiaries,
   Income taxes and discontinued
   operations                       $(551)        $(57)        $(494)

  Equity in earnings of
   unconsolidated affiliates        1,227          ---         1,227

  Minority interests in income of
   consolidated subsidiaries         (184)         ---          (184)

  INCOME (LOSS) BEFORE INCOME
   TAXES AND DISCONTINUED
    OPERATIONS                       $492         $(57)         $549

  Income tax expense (benefit)        275          (20)          295

  INCOME (LOSS) FROM CONTINUING
   OPERATIONS                        $217         $(37)         $254



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

                              For the Nine Months Ended September 30, 2006
                                                            Radiologix
                                                            Excluding
                                              Terminated    Terminated
                                Radiologix    Operations    Operations
  Service fee revenue            $193,889         $---      $193,889
  Costs of operations:
    Cost of services              121,635           16       121,619
    Equipment lease                11,753            8        11,745
    Provision for doubtful
     accounts                      16,376          (47)       16,423
    Depreciation and amortization  18,456          ---        18,456
         Gross profit             $25,669          $23       $25,646

  Merger costs                      1,049          ---         1,049
  Corporate general and
   administrative                  12,338          ---        12,338
  Interest expense, net,
   including amortization of
   deferred financing costs        13,128          ---        13,128

  Income (loss) before equity
   in earnings of unconsolidated
   affiliates, minority interests
   in consolidated subsidiaries,
   Income taxes and
   discontinued operations          $(846)         $23         $(869)

  Equity in earnings of
   unconsolidated affiliates        3,009          ---         3,009

  Minority interests in income
   of consolidated subsidiaries      (541)         ---          (541)

  INCOME BEFORE INCOME TAXES AND
   DISCONTINUED OPERATIONS         $1,622          $23        $1,599

  Income tax expense                  354          ---           354

  INCOME FROM CONTINUING
   OPERATIONS                      $1,268          $23        $1,245



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

                                                               Radiologix
                                                               Excluding
                                                 Terminated    Terminated
                                   Radiologix    Operations    Operations
  Service fee revenue               $189,320         $968      $188,352
  Costs of operations:
    Cost of services                 120,838          486       120,352
    Equipment lease                    9,582           26         9,556
    Provision for doubtful accounts   13,647          242        13,405
    Depreciation and amortization     17,433            1        17,432
        Gross profit                 $27,820         $213       $27,607

  Merger costs                           ---          ---           ---
  Corporate general and
   administrative                     13,195          ---        13,195
  Interest expense, net,
   including amortization
   of deferred financing costs        13,802            1        13,801

  Income before equity in earnings
   of unconsolidated
   affiliates, minority interests
   in consolidated subsidiaries,
   Income taxes and
   discontinued operations              $823         $212          $611

  Equity in earnings of
   unconsolidated affiliates           2,888          ---         2,888

  Minority interests in income of
  consolidated subsidiaries             (487)         ---          (487)

  INCOME BEFORE INCOME TAXES
   AND DISCONTINUED OPERATIONS        $3,224         $212        $3,012

  Income tax expense                     444           87           357

  INCOME FROM CONTINUING OPERATIONS   $2,780         $125        $2,655


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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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