Alliance HealthCare Services Announces Reverse Split of Common Stock

  Alliance HealthCare Services Announces Reverse Split of Common Stock

Business Wire

NEWPORT BEACH, Calif. -- December 12, 2012

Alliance HealthCare Services, Inc. (NYSE:AIQ) (the “Company” or “Alliance”), a
leading national provider of outpatient diagnostic imaging and radiation
therapy services, today announced a 1-for-5 reverse split of its common stock.
The reverse stock split will be effective December 26th at 5:01 p.m. Eastern
Time and Alliance’s common stock will begin trading on the NYSE on a
split-adjusted basis when the market opens on Thursday, December 27th, 2012.

Larry C. Buckelew, Chairman of the Board and interim Chief Executive Officer,
explained, “Thanks to the ongoing hard work from the entire Alliance team, we
are pushing our strategic growth initiatives forward. Since undertaking the
interim CEO role in June, we have worked together to implement substantial
changes. The continued cost savings improvements and focus on efficiency have
translated to improving quarterly results. We continue to strategically
enhance our long-term value proposition and our strong cash generation will
allow us to make smart investments in our business. We have proactively
addressed our debt obligation and the increased financial flexibility this
affords enhances our financial profile. We believe the market hasn’t fully
recognized these improvements and that our stock remains significantly
undervalued. This reverse stock split is the right decision at this time and
should better position Alliance in the capital markets. We are in the process
of working to transfer our listing to the NASDAQ Global Market, and believe
that a higher share price will better enable us to do so in the near term
while making our shares more attractive to some institutional investors."

At the effective time of the reverse stock split, every five shares of
Alliance’s issued and outstanding common stock will be automatically converted
into one issued and outstanding share of common stock, without any change in
the par value per share. All fractional shares will be rounded up to the
nearest whole share.

The reverse stock split will reduce the number of shares of Alliance’s common
stock outstanding from approximately 52.9 million to approximately 10.6
million. Proportional adjustments will be made to Alliance’s stock options and
equity-compensation plans. The reverse stock split will have no effect on the
Company's authorized shares of preferred stock.

The Company’s common stock will continue to trade on the NYSE under the symbol
“AIQ” and will continue to be subject to the indicator .BC until such time as
the Company has regained compliance with all applicable continued listing

When the reverse split takes effect, shareholders holding certificated shares
or shares through a brokerage account will have their shares automatically
adjusted to reflect the reverse stock split. The issuance of new stock
certificates will not be required, although shareholders may obtain a new
certificate from their broker or the Company's transfer agent, if they so

About Alliance HealthCare Services

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 499 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 130 locations across the country. Alliance also operates 30
radiation therapy centers, including 15 dedicated stereotactic radiosurgery
facilities, many of which are operated in conjunction with local community
hospital partners, providing treatment and care for cancer patients. With 15
stereotactic radiosurgery facilities in operation, Alliance is among the
leading providers of stereotactic radiosurgery nationwide.

Forward-Looking Statements

This press release contains forward-looking statements relating to future
events, including statements related to the Company’s planned reverse split of
its common stock, including the expected effective date and the expected first
date of trading on a post-split basis, as well as statements related to the
Company’s ability to transfer to the NASDAQ Global Market or regain compliance
with NYSE listing standards. In this context, forward-looking statements often
address the Company’s expected future business and financial results and often
contain words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks” or “will.” Forward-looking statements by their nature
address matters that are uncertain and subject to risks. Such uncertainties
and risks include the risks and uncertainties identified in the Risk Factors
section of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2011, filed with the Securities and Exchange Commission (the
“SEC”), as may be modified or supplemented by our subsequent filings with the
SEC. These uncertainties may cause actual future results or outcomes to differ
materially from those expressed in the Company’s forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company does not
undertake to update its forward-looking statements except as required under
the federal securities laws.


Alliance HealthCare Services
Howard Aihara
Executive Vice President
Chief Financial Officer
(949) 242-5300
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