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Insight Imaging Enters into Agreement to Acquire Eight Imaging Centers

^{Published on 2010-05-13 19:20:17 - Market Wire}
 

LAKE FOREST, Calif.--([ BUSINESS WIRE ])--InSight Health Services Holdings Corp. (aInsight Imaginga) (OTCBB:ISGT) today announced that it had signed a definitive agreement to acquire eight imaging centers in the Phoenix, Arizona, El Paso, Texas, and Las Cruces, New Mexico areas from subsidiaries of MedQuest, Inc. and Novant Health, Inc., for a total purchase price of approximately $8.5 million. The centers generated approximately $18.7 million in net revenues in 2009. In a separate transaction, Insight Imaging has agreed to sell mobile imaging assets in North Carolina for approximately $9.2 million to an affiliate of MedQuest and Novant. The mobile imaging assets generated approximately $3.3 million in net revenues in 2009. Insight Imaging expects the transactions, which are expected to close in July 2010, to be accretive to adjusted EBITDA after reflecting anticipated operating synergies.

"We are excited to be able to add these strategically well-placed imaging centers to our existing markets. We believe that their addition will improve our strategic positioning and value to our referring physicians, patients and payers."

Kip Hallman, President and CEO of Insight Imaging said, aWe are excited to be able to add these strategically well-placed imaging centers to our existing markets. We believe that their addition will improve our strategic positioning and value to our referring physicians, patients and payers.a

About Insight Imaging

Insight Imaging, headquartered in Lake Forest, California, is a provider of retail and wholesale diagnostic imaging services. Insight Imaging serves a diverse portfolio of customers, including healthcare providers, such as hospitals and physicians, and payors, such as managed care organizations, Medicare, Medicaid and insurance companies, in over 30 states, including the following targeted regional markets: California, Arizona, Texas, New England, the Carolinas, Florida and the Mid-Atlantic states.

For more information, please visit [ www.insighthealth.com ].

Safe Harbor

The foregoing contains forward-looking statements regarding Insight Imaging. They reflect Insight Imaginga™s current views with respect to current events and financial performance, are subject to many risks, uncertainties and factors relating to Insight Imaginga™s operations and business environment which may cause the actual results of Insight Imaging to be materially different from any future results, express or implied by such forward-looking statements. Insight Imaging intends that such forward-looking statements be subject to the Safe Harbor created by Section 27(a) of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The words and phrases aexpect,a aestimate,a and aanticipatea and similar expressions identify forward-looking statements. Certain factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) Insight Imaginga™s ability to successfully implement its core market strategy; (ii) overcapacity and competition in Insight Imaginga™s markets; (iii) reductions, limitations and delays in reimbursement by third-party payors; (iv) contract renewals and financial stability of customers; (v) changes in the nature of commercial health care insurance arrangements, so that individuals bear greater financial responsibility through high deductible plans, co-insurance and co-payments; (vi) conditions within the healthcare environment; (vii) the potential for rapid and significant changes in technology and their effect on Insight Imaginga™s operations; (viii) operating, legal, governmental and regulatory risks; (ix) conditions within the capital markets, including liquidity and interest rates, and (x) economic (including financial and employment market conditions), political and competitive forces affecting Insight Imaginga™s business, and the countrya™s economic condition as whole.