LAKE FOREST, CALIF. . . . February 26, 2008. InSight Health Services Holdings Corp. (“InSight”) (OTCBB:ISGT) today announced that a wholly owned subsidiary of InSight has entered into a definitive asset purchase agreement to sell six diagnostic imaging centers it owns in Southern California to RadNet Management, Inc. (“RadNet”) for $8.5 million. The six centers are located in Simi Valley, Thousand Oaks, Westlake Village, Encino, Van Nuys and Valencia. Completion of the transaction is subject to customary closing conditions. Radnet and InSight expect to complete the transaction in March 2008.
Richard Nevins, InSight’s Interim Chief Executive Officer stated: “InSight is committed to building its business around core markets, where our strong presence yields strong operating results. This important transaction is an example of how we see our core markets strategy developing. We intend to complete additional transactions; some where we acquire facilities in current or potential core markets and others, like this transaction, where we sell assets in non-core markets. In this case, we will sell a group of non-strategic, and in several cases underperforming, centers, giving us the opportunity to reinvest the proceeds where we can realize the benefits of our core market strategy.”
About InSight
InSight, headquartered in Lake Forest, California, is a nationwide provider of diagnostic imaging services. It serves managed care entities, hospitals and other contractual customers in over 30 states, including the following targeted regional markets: California, Arizona, New England, the Carolinas, Florida and the Mid-Atlantic states. As of December 31, 2007, InSight’s network consists of 97 fixed-site centers and 105 mobile facilities.
For more information, please visit www.insighthealth.com.
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 155 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland and New York. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees.
For more information, visit http://www.radnet.com.
Forward-Looking Statements
The matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors as (1) obtaining the necessary approvals to consummate the transaction; (2) overcapacity and competition in InSight’s markets; (3) reductions, limitations and delays in reimbursement by third party payors; (4) contract renewals and financial stability of InSight’s customers; (5) conditions within the healthcare environment; (6) the potential for rapid and significant changes in technology and their effect on InSight’s operations; (7) operating, legal, governmental and regulatory risks; (8) economic, political and competitive forces affecting InSight’s business; (9) InSight’s ability to successfully implement asset dispositions; (10) InSight’s ability to successfully integrate acquisitions; and other risk factors detailed in InSight’s SEC filings.