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GE Healthcare Financial Services Closes $161 Million Deal With Primedex Health Systems, Inc./Radnet Management, Inc.

Posted on: Tuesday, 21 March 2006, 12:01 CST

GE Healthcare Financial Services has arranged a $161 million senior secured credit facility for Primedex Health Systems, Inc. and its primary operating subsidiary, Radnet Management, Inc., a leading provider of outpatient diagnostic imaging services in California.

The $161 million credit facility consists of a $15 million five-year revolving credit facility, an $86 million five-year term loan B, and a $60 million six-year second lien term loan. Primedex will use the proceeds for refinancing a portion of its existing debt and also to provide liquidity for working capital and other general corporate needs. GE Capital Markets, Inc. is sole lead arranger and sole bookrunner on the deal, and GE Healthcare Financial Services is the administrative agent.

"The facility provided by GE is a transforming financial transaction for our company," said Mark Stolper, chief financial officer of Primedex. "The resulting capital structure greatly increases our liquidity, and will allow us to use significantly more of the cash that we generate to grow our business and capitalize on future business opportunities."

"Radnet has been a GE partner for more than 25 years, so we were pleased to expand our relationship with such a pivotal transaction," said Bob McCarrick, senior managing director of GE Healthcare Financial Services' commercial finance group. "That long-term relationship, combined with our team's capital markets execution abilities, really helped us create a solution that will help the Primedex team achieve its overall business goals."

About Primedex Health Systems, Inc.

Primedex Health Systems, Inc. (OTCBB:PMDX.OB), through its wholly-owned subsidiary, Radnet Management, Inc. and affiliated entity, Beverly Radiology Medical Group, is a leading provider of outpatient diagnostic imaging services in California through its extensive network of 57 fixed site centers. The Company operates 34 multi-modality facilities and 23 single-modality facilities located throughout 11 geographic regions in California.

About GE Healthcare Financial Services

GE Healthcare Financial Services is a provider of capital, financial solutions, and related services for the global healthcare market. With over $13 billion of capital committed to the healthcare industry, GE Healthcare Financial Services offers a full range of capabilities from equipment financing and real estate financing to working capital lending, vendor programs, and practice acquisition financing. With its knowledge of all aspects of healthcare from hospitals and long-term care facilities to physicians' practices and life sciences, GE Healthcare Financial Services works with customers to create tailored financial solutions that help them improve their productivity and profitability. For more information, visit www.gehealthcarefinance.com.

Source: Business Wire

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