AFFILIATE OF APOLLO MANAGEMENT, L.P.
               TO ACQUIRE STOCK OF ALLIANCE IMAGING, INC.
   
   
   ANAHEIM, CA (JULY 23, 1997) ALLIANCE IMAGING, INC. (NASDAQ:SCAN), a leading
   nationwide provider of outsourced radiology services and high technology
   diagnostic imaging systems, today announced that it has entered into a
   definitive agreement with Newport Investment LLC ("Newport"), an affiliate of
   Apollo Management, L.P. ("Apollo"), pursuant to which a subsidiary of Newport
   will merge with the Company.  In the merger, approximately 95% of the fully
   diluted common stock of Alliance (excluding options and warrants to be cashed
   for their spread value) will be retired for $11.00 per share in cash.  The
   Alliance transaction will be structured as a recapitalization whereby after
   the transaction Newport will own approximately 82.2% of the common stock of
   the new company and existing shareholders will own approximately 17.8%.
   
   On June 24, 1997, another affiliate of Apollo entered into an agreement to
   acquire SMT Health Services, Inc. (NASDAQ:SHED) ("SMT"), a company which
   operates 20 mobile MRI units in the eastern United States.  An affiliate of
   Apollo has commenced a tender offer for all shares of SMT pursuant to the SMT
   acquisition agreement.  Upon closing of the SMT and Alliance transactions,
   Apollo intends to combine SMT and Alliance.  Following the combination of
   Alliance and SMT, it is anticipated that existing shareholders of Alliance
   will own approximately 10% of the combined new company.
   
   The total Alliance transaction is valued at approximately $258 million,
   including outstanding stock options, fees and the refinancing of
   approximately $67 million of net debt.  The transaction will be subject to
   customary conditions, including a vote of Alliance shareholders and the
   obtaining of financing and necessary regulatory and third party consents.
   Newport has signed agreements with holders of a majority of the shares of
   Alliance to vote for the transaction.  Furthermore, these agreements grant
   Newport an option to acquire a majority of the outstanding shares at $11.00.
   
   Following the transaction, senior management of Alliance, including Richard
   Zehner, Chief Executive Officer, and Vincent Pino, Chief Operating Officer,
   will continue to manage the operations of Alliance in their current
   positions.
   
   Alliance Imaging is a leading provider of outsourced radiology services
   and high technology diagnostic imaging systems to hospitals and other health
   care providers nationwide and operates over 100 MRI and CT systems in 36
   states.
   
   
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