Fonar Corporation Reaches Settlement With Philips In Patent Infringement Case

Business Wire, March 26, 1996

MELVILLE, N.Y.--(BUSINESS WIRE)--March 26, 1996--FONAR Corporation (symbol FONR), a leading manufacturer of magnetic resonance imaging (MRI) systems, and holder of the world's first MRI patent, as well as an array of other MRI patents, announced today that it has settled its lawsuit with Philips Medical Systems for infringing certain MRI patents held by FONAR.

FONAR will receive a monetary payment from Philips. Other terms of the settlement are confidential.

In April of 1995, FONAR settled a similar lawsuit with Hitachi. On October 6th 1995, FONAR obtained a judgment against GE in the amount of $62,000,000 plus interest for infringing the Company's Multi Angle Oblique patent. That case is now before the appellate court. FONAR is currently in the discovery stage in similar infringement suits with Siemens Medical Systems and Toshiba Corporation. A tentative trial date for the Siemens case is in the summer of 1997.

The original court action asserted 2 of its patents against Philips including the '832 patent entitled "Apparatus and Method for Detecting Cancer in Tissue" and the '966 patented entitled "Apparatus and Method for Multiple Angle Oblique Magnetic Resonance Imaging", and was filed in the Federal District Court in Wilmington, Delaware, on June 16, 1995. Philips counter claimed with 2 patents of its own.

FONAR is represented by Ronald J. Schutz and Martin R. Lueck of the Minneapolis based national law firm of Robins, Kaplan, Miller and Ciresi. Messrs. Schutz and Lueck are the lead attorneys for FONAR in the cases against GE, Siemens and Toshiba.

Visit FONAR's Web site- http://www.fonar.com for information on FONAR's products and other Company information.

CONTACT: FONAR Corporation

David Terry

(919) 847-9535

(919) 676-8629 (fax)