Fonar sells outpatient operation

April 30, 2003

Wholly owned Fonar subsidiary Health Management Corporation of America (HMCA) sold its stock April 8 in A&A Services, a physician practice management services organization that manages four primary-care practices in New York City. The sale was made to

Wholly owned Fonar subsidiary Health Management Corporation of America (HMCA) sold its stock April 8 in A&A Services, a physician practice management services organization that manages four primary-care practices in New York City. The sale was made to the former owners for $3 million cash. The buyers also forgave Fonar debts of about $1.1 million. About five years ago HMCA purchased A&A for $10 million payable in a combination of cash, promissory notes, and HMCA stock. Fonar emphasized that no family, business, or other material relationship exists between the buyers and any directors or officers of Fonar, HMCA, or its respective affiliates.