AMERICAN HEALTH SERVICES CORP. ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--March 27, 1996--AMERICAN HEALTH SERVICES CORP. (OTC Bulletin Board Symbol: AHTS) today announced results for the fourth quarter and year ended December 31, 1995. Revenues for the fourth quarter increased to $9,747,000 from revenues of $8,366,000 reported for the same period ended December 31, 1994. For the fourth quarter, the Company reported a net loss of $576,000, or $0.06 per share, compared to a net loss of $665,000, or $0.07 per share, in the same period of 1994.

Revenues for the year ended December 31, 1995, increased to $36,999,000, as compared to revenues of $36,046,000 reported for the year ended December 31, 1994. For the year, the Company reported a net loss of $1,138,000, or $0.12 per share, as compared to a net loss before an extraordinary gain on restructuring of long-term debt of $1,451,000, or $0.15 per share, in 1994.

The increase in revenues was primarily due to two new centers and higher utilization at the majority of the Company's remaining centers.

Commenting on the results, E. Larry Atkins, President and Chief Executive Officer of AMERICAN HEALTH SERVICES CORP., stated, "We continue to be encouraged by the results of our diagnostic imaging center operations. While we haven't reached profitability, we have increased scan volume on a same-store basis despite the fact the MRI system utilization nationally is declining."

Mr. Atkins continued, "Our February announcement of the merger with Maxum Health Corp. ("Maxum") (OTC Bulletin Board Symbol: MXHC), to form a new healthcare management company called InSight Health Services Corp. along with our comprehensive debt and lease restructuring will give us the ability to implement our business plan. The merger is subject to certain conditions, including approval by American Health and Maxum stockholders and the closing of the financial accommodation transactions. The stockholders' meetings are expected to be held in the second quarter of 1996."

Mr. Atkins concluded, "We are excited about the prospects for the combined entity which will provide diagnostic imaging and treatment services to physicians, managed care networks and hospital-based centers nationwide. In connection with the merger, we are developing a range of new products that will allow us to become providers of management information services and a developer of regional imaging networks to meet the needs of payors and other providers in the emerging managed care marketplaces."

AMERICAN HEALTH SERVICES CORP. develops and operates diagnostic imaging and Gamma Knife radiosurgery treatment centers affiliated with healthcare providers and is one of the largest operators of fixed-site, hospital-based diagnostic imaging centers in the United States. -0-

                  AMERICAN HEALTH SERVICES CORP.
               Consolidated Statements of Operations

                                               Year Ended
                                               December 31,
                                           1995           1994
Revenues:
 Center revenues                        $36,999,312    $36,046,164
Expenses:
 Center expenses                         29,963,020     29,053,657
Provision for center profit
  distributions                             766,388        917,339
Income from center operations             6,269,904      6,075,168
Corporate Operating Expenses              4,088,252      3,670,772
Income from operations before interest    2,181,652      2,404,396
Interest Income and Other                   147,701        108,923
Interest Expense                         (3,437,764)    (3,926,969)
  Loss before provision for income
    taxes and extraordinary item         (1,108,411)    (1,413,650)
Provision for Income Taxes                   30,000         37,000
Lose before extraordinary item           (1,138,411)    (1,450,650)
Extraordinary item:
  Gain on restructuring of long-term debt     --           305,985
Not Loss                               $ (1,138,411)  $ (1,144,665)
Earnings (loss) per common share:
 Lose before extraordinary item        $      (0.12)  $      (0.15)
 Extraordinary item                             --             .03
                                       $      (0.12)  $      (0.12)
Weighted average number of common
 shares outstanding                       9,683,647      9,683,647

                Selected Balance Sheet Information

                                   At December 31,
                                       1995           1994
Total current assets            $13,516,004    $12,596,123
Total current liabilities        24,710,307     10,008,600
Total assets                     36,440,354     40,222,937
Long-term debt                   21,307,834     39,400,171
Stockholders, equity (deficit)  (12,102,033)   (10,963,622)

The information obtained here was obtained from the Management of American Health Services Corp. and other sources deemed to be reliable. This does not constitute the solicitation of the purchase or sale of securities. Lippert/Heilshorn & Associates, Inc. is employed by the Company as its investor relations firm and the firm or its officers may have a positions in the securities of this client Company.

CONTACT: American Health Services Corp.

Thomas V. Croal

Vice President and

Chief Financial Officer

[phone]

or

Julie Vicelja

Lippert/Heilshorn & Associates, Inc.

[phone]