Alliance HealthCare Services Announces Oncology Therapy Facilities Expansion

US Radiosurgery Division Continues to Expand by Partnering with Hospitals

<0> Alliance HealthCare ServicesHoward AiharaExecutive Vice PresidentChief Financial Officer(949) 242-5300 </0>

Alliance HealthCare Services, Inc. (NYSE:AIQ), a leading national provider of outpatient diagnostic imaging and radiation therapy services, announced that it has established two additional oncology therapy centers this year, St. Louis CyberKnife, which opened on October 1, 2012 and Rush Radiosurgery, which has been open for approximately six months and just treated its 100 patient. These cutting edge centers were established through separate joint ventures with US Radiosurgery and represent a combined $10 million investment.

As a division of Alliance Oncology, US Radiosurgery’s network encompasses facilities throughout the United States that collectively have treated thousands of patients with stereotactic radiosurgery technology, a noninvasive method of treating tumors and other medical conditions with surgical accuracy using high-dose radiation delivered in five or fewer outpatient treatments.

Alliance Oncology has partnered with hospitals in St. Louis and Chicago as an ongoing initiative to set a new standard of care for cancer patients. Currently, Alliance Oncology operates 32 radiation therapy centers and stereotactic radiosurgery facilities in 17 states across the nation.

“These significant partnerships will enable us to expand our footprint as a provider of state-of-the-art oncology centers while also strengthening our portfolio in radiation therapy services,” said Larry C. Buckelew, Chairman of the Board and interim Chief Executive Officer of Alliance HealthCare Services. “The investments in these facilities demonstrate our ongoing commitment to address the complete array of needs for cancer centers, from early detection enabled by advanced diagnostic imaging to cutting edge treatment technologies.”

was developed as a joint venture between US Radiosurgery, SSM Cancer Care, and a group of physicians local to the St. Louis area. CyberKnife is a robotic technology used by radiation oncologists and surgeons to treat patients through stereotactic radiosurgery. The St. Louis CyberKnife center began treating patients on October 1, 2012 and is located on the campus of the SSM St. Clare Health Center in Fenton, Mo.

was developed as a joint venture between US Radiosurgery and Rush University Medical Center. The Rush Radiosurgery center offers patients treatment with the TrueBeam STx radiosurgery system, which also treats patients by using stereotactic radiosurgery. Rush Radiosurgery began treating patients on March 26, 2012 and is located on the Rush University Medical Center campus in Chicago, IL.

The Company expects these joint ventures to contribute $8 million in revenue with strong Adjusted EBITDA margins in the first year of operation. The partnerships were established as 10-year renewable contracts.

“Over a six-month period, the Rush Radiosurgery facility has treated more than 100 patients, putting us on track to exceed our goal of treating 170 patients within the first twelve months of operation at this facility,” Buckelew added. “This demonstrates the demand for technological advancements that will shape the future of cancer treatment and will ultimately drive the expansion of our Oncology division.”

Alliance HealthCare Services is a leading national provider of advanced outpatient diagnostic imaging and radiation therapy services based upon annual revenue and number of systems deployed. Alliance focuses on MRI, PET/CT and CT through its Imaging division and radiation therapy through its Oncology division. With more than 1,900 team members committed to providing exceptional patient care and exceeding customer expectations, Alliance provides quality clinical services for over 1,000 hospitals and other healthcare partners in 46 states. Alliance operates 501 diagnostic imaging and radiation therapy systems. The Company is the nation’s largest provider of advanced diagnostic mobile imaging services and one of the leading operators of fixed-site imaging centers, with 126 locations across the country. Alliance also operates 32 radiation therapy centers, including 16 dedicated stereotactic radiosurgery facilities, many of which are operated in conjunction with local community hospital partners, providing treatment and care for cancer patients. With 16 stereotactic radiosurgery facilities in operation, Alliance is among the leading providers of stereotactic radiosurgery nationwide.