American Medical Alert Corp. Reports Results for Three and Six Months Ended June 30, 2000.

    Business Editors

      OCEANSIDE, N.Y.--(BUSINESS WIRE)--Aug. 14, 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 six months ended June 30, 2000.

REVENUES:

      Revenue from services (recurring monthly revenues, RMR) increased
$620,283 for the six months ended June 30, 2000 as compared to the
same period in 1999, an increase of 14%, and increased $345,782 for
the three months ended June 30, 2000 as compared to the same period in
1999, an increase of 16%. 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. In the first two quarters of fiscal year
2000, the Company has doubled its net new subscriber growth,
independent of the City of New York contract, in comparison to fiscal
year 1999. Costs related to services as a percentage of RMR for the
six months ended June 30, 2000 and 1999 were 43% and 37%, and for the
three months ended June 30, 2000 and 1999 were 44% and 37%,
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, and start up costs
associated with the development of the Company's subsidiary Safe Com,
Inc.
      Revenue from product sales for the six months ended June 30, 2000
was $188,164 an increase of $29,292 as compared to the same period
in 1999. Revenue from product sales for the three months ended June
30, 2000 was $106,734 an increase of $29,226 as compared to the same
period in 1999. Gross profit on product sales for the six months ended
June 30, 2000 and 1999 was 23% and 5%, respectively. Gross profit on
product sales for the three months ended June 30, 2000 and 1999 was
13% and 6%, 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 $603,428
for the six months ended June 30, 2000 as compared to the same
period in 1999, an increase of 33%. Selling, general, and
administrative expenses as compared as a percentage of total revenues
for the six months ended June 30, 2000 and 1999 were 48% and 41%
respectively. Selling, general and administrative expenses increased
by $355,121 for the three months ended June 30, 2000 as compared to
the same period in 1999, an increase of 37%. Selling, general, and
administrative expenses as compared as a percentage of total revenues
for the three months ended June 30, 2000 and 1999 were 49% and 42%,
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,
Safe Com, Inc.
      Interest expense for the six months ended June 30, 2000 and 1999
was $38,075 and $9,901, respectively. Interest expense for the three
months ended June 30, 2000 and 1999 was $23,768 and $4,386,
respectively. Interest in 2000 increased as a result of additional
capital needed to fund inventory and equipment needs for new
subscribers, management systems, and the start up of the Company's new
subsidiary, Safe Com, Inc.
      The Company's income before provision for income taxes for the six
months ended June 30, 2000 was $387,654, a decrease of $473,418 from
1999, or 55%. The Company's income before provision for income taxes
for the three months ended June 30, 2000 was $106,788, a decrease of
$326,192 from 1999, or 75%. The decrease in income before provision
for income taxes in 2000 resulted from the factors noted above.

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 and several other companies
submitted proposals 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 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, 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 most
recent notification. As of August 14, 2000, the contract had not been
awarded. The Company continues as the current vendor and current
revenues and the current subscriber base relating to this agreement
have increased slightly since the levels achieved in the 2nd quarter
of 1999.
      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 a transition method 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 six months of 2000 proved to be a period of transition for the
Company, as we experienced success in growing our customer base
outside the contract with the City of New York through a variety of
dynamic marketing efforts which have continued to contribute to
increasing recurring monthly revenues. In the first two quarters of
fiscal year 2000, the Company doubled its net new subscriber growth,
independent of the City of New York contract, in comparison to fiscal
year 1999, 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,
our aggressive provider conversion programs and new business
initiatives should continue to expand the use of services while
opening new marketing opportunities for personal monitoring."
      Mr. Siegel added, "The Company believes it has reliably and
efficiently served the City of New York as the vendor of record under
the Agency's personal emergency response services contract. We are
examining other remedies that may be available to the Company in
connection with this contract. Management anticipates 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."

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                     AMERICAN MEDICAL ALERT CORP.
             SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION

                        Three Months Ended         Six Months Ended
                             June 30                   June  30
                      2000           1999         2000        1999
                    ------------ -----------    --------   -----------
Service Revenues    $ 2,527,899  $ 2,182,117  $ 4,917,073  $ 4,296,790
Product Sales       $   106,734  $    77,508  $   188,164  $   158,892
Total Revenues      $ 2,634,633  $ 2,259,625  $ 5,105,237  $ 4,455,682
Net Income          $    62,788  $   249,980  $   225,654  $   490,072

Earnings per share:
         Basic      $       .01  $       .04  $       .04  $       .08
         Diluted    $       .01  $       .04  $       .04  $       .08

Weighted Average
 Number of Common
 Shares Outstanding:
         Basic        6,414,111    6,377,922    6,410,584    6,371,601
         Diluted      6,414,111    6,420,739    6,415,317    6,510,911

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      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.
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    --30--sm/ny* mw/ny

    CONTACT: American Medical Alert Corp.
             Howard M. Siegel, CEO
             Web Site - http://www.amacalert.com
             Email: [e-mail]
             Tel: [phone]

    KEYWORD: NEW YORK
    INDUSTRY KEYWORD: MEDICAL MEDICAL DEVICES MANUFACTURING EARNINGS