American Medical Alert Corp. Reports Results for Three and Nine Months Ended September 30, 2000.

Business Editors

OCEANSIDE, N.Y.--(BUSINESS WIRE)--November 15, 2000

American Medical Alert Corp., (NASDAQ:AMAC), an innovative provider of Personal Emergency Response Systems (PERS), announced consolidated results of operations for the three and nine months ended September 30, 2000.

REVENUES:

Revenue from services (recurring monthly revenues, RMR) increased $926,927 for the nine months ended Sept. 30, 2000 as compared to the same period in 1999, an increase of 14%, and increased $306,645 for the three months ended Sept. 30, 2000 as compared to the same period in 1999, an increase of 14%. The HCSP Program revenue has remained virtually unchanged while the realized revenue increases have been derived virtually exclusively from other program endeavors. The Company has experienced success in growing its customer base outside the contract with the City of New York through a variety of marketing efforts that have continued to contribute to increasing RMR. These efforts include competitive conversions, strategic partnerships with healthcare provider systems, additional entry into Medicaid reimbursed marketplaces, increased sales of the Company's proprietary medication compliance device (MED-TIME) and increased sales from the Company's wholly owned commercial security services subsidiary (SAFECOM). As a result, the Company has doubled its net new subscriber growth in the first three (3) quarters of fiscal year 2000 in comparison to fiscal year 1999. Costs related to services as a percentage of RMR for the nine months ended Sept. 30, 2000 and 1999 were 45% and 37%, and for the three months ended Sept. 30, 2000 and 1999 were 50% and 36%, respectively. The increases in costs related to services resulted from increased depreciation of medical devices, additional response center personnel, enhancement of the Company's information systems and personnel, and increases in telecommunication costs resulting from the expansion of available services to subscribers. Revenue from product sales for the nine months ended Sept. 30, 2000 was $243,245, a decrease of $16,038 as compared to the same period in 1999. Revenue from product sales for the three months ended Sept. 30, 2000 was $55,081, a decrease of $45,311 as compared to the same period in 1999. Gross profit on product sales for the nine months ended Sept. 30, 2000 and 1999 was 29% and 4%, respectively. Gross profit on product sales for the three months ended Sept. 30, 2000 and 1999 was 51% and 3%, respectively. The gross profit percentage 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 $1,013,414 for the nine months ended September 30, 2000 as compared to the same period in 1999, an increase of 36%. Selling, general, and administrative expenses as a percentage of total revenues for the nine months ended June 30, 2000 and 1999 were 49% and 41%, respectively. Selling, general and administrative expenses increased by $410,166 for the three months ended September 30, 2000 as compared to the same period in 1999, an increase of 43%. Selling, general, and administrative expenses as a percentage of total revenues for the three months ended September 30, 2000 and 1999 were 53% and 41% respectively. Additional expenses incurred in 2000 were the result of the hiring of executive and management personnel, expansion of the sales department, increased sales and marketing expenses, and start up costs associated with the development of the Company's new subsidiary, SafeCom. The Company's objective in acquiring the services of senior healthcare executives was analysis, development, and implementation of a revised business plan designed to assure acquisition of complementary and synergistic business opportunities in the healthcare services and telecommunications industry. A portion of the additional expenses are attributed to legal, travel and ancillary services incurred in the analysis and development of the Company's revised business plan. The Company's activities this quarter included establishing a healthcare advisory board providing management and the Company's Board of Directors with perspective and direction for the H-Link marketing initiative. The advisory board is comprised of leading healthcare professionals with diverse areas of expertise.

In the third quarter, the total of the current and deferred costs relating to the Company's protest in connection with the extension of the HCSP contract with the City of New York have been charged against income, and shown as a period expense, totaling $329,009.

Interest expense for the nine months ended September 30, 2000 and 1999 was $85,377 and $9,901, respectively. Interest expense for the three months ended September 30, 2000 and 1999 was $47,302 and $4,386, respectively. Interest in 2000 increased as a result of additional borrowings needed to fund inventory and equipment needs for new subscribers, management systems, and the start up of the Company's new subsidiary, SafeCom.

The Company's loss before provision for income taxes for the nine months ended September 30, 2000 was $53,529 which represents a decrease of $ 1,257,245 from the net income reported in the 1999 period. The Company's loss before provision for income taxes for the three months ended September 30, 2000 was $441,183. The decrease in income, and resulting loss before provision for income taxes in 2000 resulted from an increase in the Company's operating, selling and administrative costs resulting from the hiring of executive and management personnel, expansion of the sales department, increased sales and marketing expenses and the write off of expenses related to the extension of the HSCP contract, all of which were 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). As previously reported, in January 1999, the Company and several other companies submitted proposals to provide the 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 vendor had been preliminarily recommended. The Company's management reviewed HCSP's preliminary recommendation and assessed alternative options and courses of action. On November 1, 1999, the Company 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. In July 2000, the Agency's Chief Contracting Officer advised the Company that the award had not yet been made. It was further stated that this protest had not persuaded the Agency to not award the contract to the other vendor. The Company, believing in the merit of its protest, appealed this determination in accordance with the procurement rules relating to the contract to the Commissioner of HRA. On August 9, 2000, the Company received notification from the Commissioner of HRA that the appeal of the determination of the Agency's Chief Contracting Officer was denied. The Company continues to believe in the merit of its protest and is evaluating all possible options in connection with this matter. On July 14, 2000, in keeping with similar extensions, the City of New York executed a contract extension extending the agreement for the period from July 1, 1999 through June 30, 2000. As of November 14, 2000, the City of New York is still evaluating the subject award. The Company continues to serve as the current HCSP vendor. The Company's current revenues and the current subscriber base relating to this agreement have increased slightly since the levels achieved in the 3rd quarter of 1999.

If the HCSP awards the contract to another vendor, approximately 37% of the Company's revenues would be lost, having a material adverse effect on operating results and cash flows. In addition, it is possible that significant adjustments to inventory and fixed assets associated with the contract would occur. The Company believes, however, that based upon a transition method implemented by HCSP, the Company could expect that revenues from HCSP would continue on a diminishing scale until all units are removed from clients' homes. At this time, no determination can be made on how the transition to another vendor would be accomplished, and in what time frame the transition would be made, and thus the full financial impact cannot be assessed at this time. 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, and the amount of time that passes before the renewal agreement is acted upon by HCSP. Depending on how HCSP may award the new contract, pricing on an individual subscriber basis may be lower than the current levels.

In light of the possibility that the Company's contract with HCSP may not be renewed, the Company's management has developed and is implementing an expanded business plan to minimize the potential loss through a reduction in HCSP's related overhead and the re-deployment of assets to other programs. In addition, the Company focused on, and intends to continue to build its subscriber base through consumers, healthcare agencies, health maintenance organizations, durable medical equipment providers, retirement communities, hospitals and other governmental agencies. In addition, the Company is continuing to invest in new products, services, and initiatives.

CURRENT BUSINESS DEVELOPMENTS

For the purpose of revenue stream diversification, the Company has successfully entered into contractual relationships with a variety of significant healthcare entities ranging from large integrated hospital networks to home care agencies and state Medicaid reimbursed programs. As a result of these new strategic alliances, as well as support among its distributor and referral networks, the Company has already achieved an 18% net new subscriber growth in the first nine months of 2000, as compared to the entire year of 1999. In addition to focusing on the Company's core business, the Company added the following two new complementary product lines that reinforce its unique position in the PERS marketplace and leverage its 24-hour monitoring platform.

The Med-Time medication reminder and dispensing system is a unique product designed to assist individuals with management of complex medication regimens. The product has given AMAC a competitive advantage in the market space.

SafeCom,Inc. ("SafeCom"), a wholly owned subsidiary of the Company, is the Company's commercial security division, which leverages the Company's twenty-four hour monitoring capabilities to provide interactive security monitoring services and security related applications to large and small retail establishments. The Company is concluding a successful one-year pilot program with a key strategic customer. Significant benefits and cost savings have been realized during the trial. The Company is now ready to introduce a national sales and marketing program for its SafeCom products in response to the successful pilot program. The Company anticipates that the SafeCom marketing initiative will further add to its revenue diversification efforts.

As stated in the Company's Annual Report, the Company's management has developed and is implementing a business plan to enhance shareholder value by expanding upon the Company's core competency, products and services within the 24 hour healthcare monitoring platform. After extensive research of current trends and forecasted needs within the healthcare industry and the needs of the Company's existing clients, the Company has developed a new service umbrella, H-Link, through which the Company anticipates expanded visibility, increased revenue and penetration of new markets. Under the H-Link strategy, the Company's flagship VoiceCare personal emergency response system and the Med-Time medication reminder and dispensing system are being repositioned as products which are part of a wider array of healthcare communication and monitoring services. The Company is currently developing other components of the H-Link platform including disease management services via home-care monitoring and on-call telecommunications services. The H-Link brand was officially introduced at the 2000 National Association of Homecare Conference. The Company experienced a positive reception by conference participants.

                     AMERICAN MEDICAL ALERT CORP.
            SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION

                          Three Months Ended        Nine Months Ended
                             September 30             September 30
                         2000           1999        2000         1999
Service Revenues    $ 2,515,844  $ 2,209,199  $ 7,432,917  $ 6,505,990
Product Sales       $    55,081  $   100,392  $   243,245  $   259,283
Total Revenues      $ 2,570,925  $ 2,309,591  $ 7,676,162  $ 6,765,273
Net Income (Loss)   $  (250,183) $   192,643  $   (24,529) $   682,715

Earnings (Loss) per
 share:
Basic               $      (.04) $       .03  $       .00  $       .11
Diluted             $      (.04) $       .03  $       .00  $       .11

Weighted Average
 Number of Common
 Shares Outstanding:
Basic                  6,411,111    6,377,922   6,411,760    6,373,708
Diluted                6,411,111    6,391,691   6,411,760    6,471,171

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.