American Medical Alert Corp. Reports Results for Year Ended December 31, 1999.

Business Editors

OCEANSIDE, N.Y.--(BUSINESS WIRE)--March 29, 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 and year ended December 31, 1999.

REVENUES:

Revenues from services (recurring monthly revenues or RMR) increased $977,000 for the year ended December 31, 1999, an increase of 13% over the same period in 1998. RMR increased $230,000 for the three months ended December 31, 1999, an increase of11% over the same period in 1998. The Company continues to see strong results in the growth of RMR resulting from management's refocusing of its sales and marketing efforts towards the growth of the subscriber base, rental income and service revenues.

Product sales revenues decreased $49,000 for the year ended December 31, 1999, a decrease of 10% from the same period in 1998. Product sales revenues increased $114,000 for the three months ended December 31,1999, an increase of 184% over the same period in 1998. Management believes that product sales, which amounted to 5% and 6% of total revenues for the years ended December 31, 1999 and 1998, respectively, will improve somewhat in 2000 through sales generated by its recently introduced Model 450 Smart Activator, an advanced remote signaling device featuring built in battery monitoring that reduces the costs associated with program maintenance, and through the sale of its MEDTIME(R) medication dispenser and reminder system.

RESULTS OF OPERATIONS:

Consolidated net income decreased $111,000 to $ 876,000 from $987,000 for the year ended December 31, 1999, a decrease of 11% over the same period in 1998. Diluted earnings per share were $.14 and $.16 for the year ended December 31, 1999 and 1998, respectively. Consolidated net income for the three months ended December 31, 1999 and 1998 was $193,000 and $217,000 and diluted earnings per share were $.03 for each period. Profitability for the three months and year ended December 31, 1999 was offset by research and developmental costs associated with the development of Safe Com, Inc.'s SILENT PARTNER(R) and enhancements of AMAC's core products. In addition, expenses resulting from the expansion of the Company's infrastructure and preplanned increases in sales and marketing expenditures contributed to the increase in selling, general and administrative expenses. Management believes these increases were necessary to increase the Company's market visibility and provide a platform for future growth and continued profitability.

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). During the years ended December 31, 1999, 1998 and 1997, the Company had revenues from this contract representing 41%, 47%, and 44%, respectively, of its total revenue. The contract with HCSP expired on June 30, 1999, and the Company continues to service HCSP under the terms and conditions of the expired contract.

In January 1999, AMAC and many 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 company 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. As of March 28, 2000 the contract had not been awarded.

If the City of New York HCSP awards the contract to another vendor, a significant amount of the Company's revenues would be lost, having a material adverse effect on operating results. With the potential loss of approximately 40 % of the Company's revenues, cash flow from operations would be adversely affected. In addition, it is possible that significant adjustments to inventory and fixed assets associated with the contract would occur. It could be expected that revenues from HCSP would continue on a diminishing scale until all units are removed and management is prepared to eliminate significant personnel costs and fixed overhead associated with servicing the contract. Even if the Company does receive the renewal of the contract, management expects that the same level of revenues will not be sustained due to the competitive nature of the bid process, including factors relating to pricing and number of subscribers to be serviced. 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 renewed, the Company's management has focused on, and will 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 and services.

PRESIDENT'S COMMENTS:

Howard M. Siegel, Chairman and President of AMAC stated, "1999 marked another year of continued growth in both RMR and our subscriber base. Strong strategic alliances with health care providers, along with our aggressive provider conversion programs 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. To support these and other growth efforts, several new positions have been added to our Marketing and Sales Departments. After years of strategic planning, AMAC is positioned to branch out into new areas of consumer service and become the conduit for the flow of home health care communication. Management believes that the market place is receptive as our target consumer is the fastest growing segment of the 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 SILENT PARTNER(R), a passive security/interactive voice system developed by our subsidiary, Safe Com, Inc., will expand the Company's core monitoring competencies, providing potentially significant recurring monthly revenue, and enhance the Company's 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 counter any potential 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           Year Ended
                            December 31             December 31
                         1999        1998        1999          1998
                    ----------- ------------ -----------   -----------
Service Revenues    $ 2,284,000  $ 2,054,000 $ 8,790,000   $ 7,812,000
Product Sales       $   176,000  $    62,000 $   435,000   $   485,000
Total Revenues      $ 2,460,000  $ 2,116,000 $ 9,225,000   $ 8,297,000
Net Income          $   193,000  $   217,000 $   876,000   $   987,000

Earnings per
 share (NOTE)
         Basic      $      .03   $       .04 $      .14    $       .17
         Diluted    $      .03   $       .03 $      .14    $       .16

Weighted Average
 Number of Common
 Shares Outstanding:
         Basic        6,382,000    6,033,000   6,376,000     5,939,000
         Diluted      6,403,000    6,227,000   6,449,000     6,062,000

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 forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward looking statements are set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-KSB, the Company's Quarterly Reports on Forms 10-QSB, and other filings and releases. These include uncertainties relating to competition, technological development, and trademarks.