AMERICAN HEALTH SERVICES CORP. ANNOUNCES THIRD QUARTER AND NINE MONTHS RESULTS.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Nov. 15, 1995--AMERICAN HEALTH SERVICES CORP. (OTC/BB Symbol: AHTS) today announced results for the third quarter and nine months ended September 30, 1995.

Revenues for the third quarter ended September 30, 1995 were $9,187,000 compared to revenues of $9,102,000 reported in the third quarter of fiscal 1994. For the period, the Company reported a net loss of $188,000, or $0.02 per share, compared to a net loss of $192,000, or $0.02 per share, for the same period of 1994.

Revenues for the nine months ended September 30, 1995 were $28,253,000 compared to revenues of $27,680,000 reported for the nine month period in 1994. For the period, the Company reported a net loss before extraordinary item of $562,000, or $0.06 per share, compared to a net loss before extraordinary item of $785,000, or $0.08 per share, in the same period of 1994.

Commenting on the results, E. Larry Atkins, President and Chief Executive Officer of AMERICAN HEALTH SERVICE CORP., stated, "We are pleased to announce continued growth in revenues and the reduction of center expenses as a percentage of total revenues during the quarter ended September 30, 1995. Furthermore, the growth was generated by the strategic addition of three new centers. We continue to focus on improving our operating efficiency by reducing costs and improving relationships with managed care payors. Looking ahead, we believe that our strategy of selectively adding new centers in markets that offer significant opportunities for additional market share will allow us to generate additional revenue growth in the future."

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
                               (Unaudited)

                      Three Months Ended       Nine Months Ended
                         September 30,            September 30,
                       1995        1994         1995         1994
REVENUES:
 Center Revenues    $9,186,774  $ 9,102,453  $28,252,789  $27,679,589
EXPENSES:
  Center expenses    7,387,681    7,357,344   22,760,405   22,170,356

Provision for
 center profit
 distributions         222,624      183,021      598,368      640,233

Income from center
 operations          1,576,469    1,562,088    4,894,016    4,869,000

CORPORATE OPERATING
EXPENSES             1,000,942      901,230    2,952,907    2,699,387

Income from
 operations before
 interest              575,527      660,858    1,941,109    2,169,613

INTEREST INCOME AND
 OTHER                  33,449       35,534      110,859       88,113

INTEREST EXPENSE      (769,617)    (888,695)  (2,613,989)  (3,043,044)
  Loss before
   extraordinary item (187,641)    (192,303)    (562,021)    (785,318)

EXTRAORDINARY ITEM:
Gain on restructuring
 of long-term debt        --           --          --         305,985

Net loss             $(187,641)   $(192,303)  $ (562,021)   $(479,333)

EARNINGS (LOSS) PER
COMMON SHARE

Loss before
 extraordinary item $    (0.02)   $   (0.02)  $    (0.06)   $   (0.08)
Extraordinary item         --           --           --          0.03

Net loss per common
 share              $    (0.02)   $   (0.02)  $    (0.06)   $   (0.05)

Weighted average
 number of common
 shares outstanding  9,683,647    9,683,647    9,683,647    9,683,647

CONTACT: Julie Vicelja

Kristen Mahan

Lippert/Heilshorn & Associates

[phone]

or

COMPANY CONTACT:

Thomas V. Croal

Vice President, Chief Financial Officer

[phone]