SOURCE: FONAR Corporation

December 01, 2008 08:00 ET

FONAR Granted Continued Listing by NASDAQ Panel

MELVILLE, NY--(Marketwire - December 1, 2008) - FONAR Corporation (NASDAQ: FONR), the Inventor of MR Scanning™, today announced that The NASDAQ Listing Qualifications Panel ("NASDAQ Panel") has granted the Company's request for continued listing on The NASDAQ Capital Market, subject to the condition that, on or before January 15, 2009, the Company file a Current Report on Form 8-K with the Securities and Exchange Commission, evidencing the Company's compliance with the NASDAQ shareholders' equity requirement of $2.5 million, or demonstrating its compliance with one of the alternative listing criteria. While the Company is taking steps to comply with the terms of the NASDAQ Panel decision, there can be no assurance that the Company will be able to do so.

In its decision, the NASDAQ Panel also determined that the Company had regained compliance with NASDAQ's proxy solicitation and annual meeting requirements, as set forth in Marketplace Rules 4350(g) and 4350(e), respectively. The Company solicited proxies and subsequently held a combined annual meeting for the current and prior fiscal years on November 17, 2008. Notwithstanding, the NASDAQ Panel issued a reprimand to the Company for failure to timely solicit proxies and to hold the annual meeting for the prior fiscal year.

UPRIGHT® and STAND-UP® are registered trademarks and The Inventor of MR Scanning™, Multi-Position™, The Proof is in the Picture™, Full Range of Motion™, pMRI™, Dynamic™, True Flow™, Spondylography™ and Spondylometry™ are trademarks of FONAR Corporation.

This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.

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