American Medical Alert Corp. Reports Results for Three Months Ended March 31,2000.

Business Editors

OCEANSIDE, NY--(BUSINESS WIRE)--May 16, 2000

American Medical Alert Corp., (NASDAQ:AMAC), an innovative provider of Personal Emergency Response Systems (PERS), announced consolidated results of operations for the three months ended March 31, 2000.

REVENUES:

Revenue from services (recurring monthly revenues, RMR) increased $274,500 for the three months ended March 31, 2000 as compared to the same period in 1999, an increase of 13%. The Company continues to see strong results in the growth of RMR resulting from refocusing its sales and marketing efforts towards the growth of the subscriber base, rental income and service revenues. Costs related to services as a percentage of RMR for the three months ended March 31, 2000 and 1999 were 42% and 38%, respectively. This increase in costs related to services resulted from increased depreciation of medical devices, additional response center personnel, and increases in telecommunication costs.

Revenue from product sales for the three months ended March 31, 2000 as compared to the same period in 1999 remained virtually the same. Gross profit on product sales for the three months ended March 31, 2000 and 1999 were 34% and 4%, respectively. Gross profit increased in 2000 as a result of the sale of the Company's new Model 450 Smart Activator and sales of the Company's products to retirement facilities, which are at higher profit margins.

RESULTS OF OPERATIONS:

Selling, general and administrative expenses increased by $ 248,308 for the three months ended March 31, 2000 as compared to the same period in 1999, an increase of 28%. Selling, general and administrative expenses as compared as a percentage of total revenues for the three months ended March 31, 2000 and 1999 were 46% and 40% respectively. Additional expenses incurred in 2000 were the result of the hiring of executive and management personnel, expansion of the sales department, and increased sales and marketing expenses.

The Company's income before provision for income taxes for the three months ended March 31,2000 was $280,866, a decrease of $ 147,226 from 1999, or 34%. The decrease in 2000 resulted from an increase in the Company's operating and selling and administrative costs, offset by an increase in service revenues.

STATUS OF CONTRACT WITH CITY OF NEW YORK:

Since 1983, the Company has provided PERS services to the City of New York's Human Resources Administration, Homecare Service Program (HCSP). In January 1999, the Company submitted its proposal to provide PERS services on behalf of the City of New York through June 30, 2003. On October 22, 1999, the Company was advised by HCSP that another company had been preliminarily recommended. The Company's management reviewed its position and immediately submitted a formal protest pursuant to paragraph 4-04 of the Rules of the Procurement Policy Board of the City of New York to contest the preliminary award. The contract with HCSP expired on June 30, 1999, and as of May 8, 2000. Company continues to service HCSP under the same terms and conditions of the contract that expired.

If the City of New York HCSP awards the contract to another vendor, approximately 36 % of the Company's revenues would be lost. Based upon the method of transition selected by HCSP, it could be expected that revenues would continue on a diminishing scale until all units are removed. Even if the Company does receive the renewal of the contract, there can be no assurance that the same level of revenues will be sustained due to a variety of factors including pricing, number of subscribers to be serviced, the competitive nature of the bid process and the amount of time that passes before the renewal agreement is acted upon by HCSP. Depending on how HCSP may award the renewal of the agreement, pricing on an individual subscriber basis may be lower than current levels. The Company cannot assess the full financial impact at this time, as no determination can be made on how the transition to another vendor would be accomplished, and in what time frame the transition will be made.

In light of the possibility that the Company's contract with HCSP may not be renewed, the Company's management has developed a business plan to minimize the potential loss through reductions in HCSP related overhead and the redeployment of assets to other programs. In addition, the Company is continuing to invest in new products and services.

PRESIDENT'S COMMENTS:

Howard M. Siegel, Chairman and President of AMAC stated, "The first quarter of 2000 proved to be a period of transition for the Company. Our subscriber base grew by approximately 3,000 new subscribers as of March 31, 2000 as our strategic plan for growth through acquisitions and conversions realized significant positive results. To support these and other growth efforts, the infrastructure of the Company has been augmented through the addition of key executive and management personnel. AMAC is positioned to branch out into new areas of consumer service and become the conduit for the flow of home health care communication. Strong strategic alliances with health care providers continue to expand the use of our core services complementing the Company's mission to become the main conduit for communications between patients and providers. Management believes that the market place is receptive as our target consumer is the fastest growing segment of the U.S. population."

Mr. Siegel further stated, "We are very excited about new opportunities for expansion and diversification into complementary home health care communication and vital sign monitoring initiatives. Management believes that our recent growth in our subscriber base and RMR, coupled with the enhancement of the Company's infrastructure should translate into greater operating performance going forward. The Company's balance sheet remains strong, and the Company will exert every effort in pursuit of the best interests of our shareholders, and to minimize any negative impact that may be caused by the possible non-renewal of the HCSP contract."

                     AMERICAN MEDICAL ALERT CORP.
             SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION

                                       Three Months Ended December 31
                                              2000         1999
                                           ----------   ----------

Service Revenues                           $2,389,174   $2,114,674
Product Sales                              $   81,430   $   81,384
Total Revenues                             $2,470,604   $2,196,058
Net Income                                 $  162,866   $  240,092

Earnings per share:
         Basic                             $      .03   $      .04
         Diluted                           $      .03   $      .04

Weighted Average Number of
 Common Shares Outstanding:
         Basic                              6,407,057    6,365,279
         Diluted                            6,416,524    6,601,083

AMAC is a leading provider of medical response and 24-hour on-call-monitoring services to assist the health care community in providing at-risk patients with instant access to assistance from trained caring professionals. The company is vertically integrated with involvement in all phases of service delivery including product design and development, manufacturing and testing, field service and 24-hour monitoring. Through a diversified marketing and referral network, AMAC markets its products to over 500 hospitals, home care providers, physicians, ambulance companies, medical equipment suppliers, state social services agencies, health maintenance organizations, and directly to consumers.

This press release contains information that may constitute forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company's actual results could differ materially from such forward-looking statements. Unless otherwise required by applicable securities law, the Company assumes no obligation to update any such forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward looking statements.