The Special Committee of the Board of Directors of FONAR Corporation (NASDAQ:FONR) ("FONAR"), The Inventor of MR Scanning™, today confirmed receipt of a supplemental proposal letter, dated July 17, 2025, from the Proposed Acquisition Group led by Timothy Damadian. The supplemental letter states that the Proposed Acquisition Group is contemplating the pursuit of a plan to acquire all of the outstanding shares capital stock of FONAR not currently owned by the Proposed Acquisition Group, at a price of $17.25 per share in cash. The letter states that the proposed share price represents a premium of approximately 27% over the average closing price of the Common Stock for the 90 trading day trading period ending on June 30, 2025. A copy of the Proposed Acquisition Group's supplemental letter is attached as an exhibit to the Group's Amended Schedule 13D/A No.1, which is available for review by the public on the Securities and Exchange Commission's website.

The Special Committee, composed of independent and disinterested directors, was formed in response to interest expressed by the Proposed Acquisition Group in exploring a possible transaction in a letter delivered to the FONAR Board and dated July 7, 2025. The Special Committee will carefully review the supplemental proposal in consultation with independent financial and legal advisors to determine the course of action that is in the best interest of FONAR and all shareholders. No action is required by FONAR shareholders at this time.

FONAR cautions its shareholders and others considering trading in FONAR's securities that FONAR has only recently received the supplemental proposal letter and no decisions have been made with respect to FONAR's response to the proposed transaction. The proposal constitutes only an indication of interest by the Proposed Acquisition Group and does not constitute a binding commitment.

There can be no assurance that any agreement will be executed or that the transaction contemplated in the proposal or any other transaction will be approved or consummated. No agreement, arrangement or understanding between FONAR and the Proposed Acquisition Group relating to any proposed transaction will be created unless definitive documentation is executed and delivered by the appropriate parties.

FONAR does not anticipate making any further public statements about this matter or the activities of the Special Committee unless and until either it enters into a definitive agreement for a transaction or the Special Committee determines that no such transaction will be effected.