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American Medical Alert Corporation Reports First Quarter 2006 Results; Company Realizes Revenue Growth of 36.5% and 23.5% Increase in Earnings as Its Growth Strategy Continues to Show Solid Results.


OCEANSIDE, N.Y. -- American Medical Alert Corp. (NASDAQ: AMAC) a provider of healthcare communication services and advanced telehealth monitoring technologies, today announced operating results for the quarter ended March 31, 2006. E[acute accent]Revenues for the quarter ended March 31, 2006, consisting primarily of monthly recurring revenues (MRR MRR - MacRitchie Reservoir (Singapore)
MRR - Maintenance Replacement Rate
MRR - Manufacturing Readiness Review
MRR - Marginal Rate of Return
MRR - Material Receiving Report
MRR - Material Recovery Rate
MRR - Material Removal Rate
MRR - Materiel Readiness Report
MRR - Mechanical Reliability Report
MRR - Microfilm Reduction Ratio
MRR - Milestone Readiness Review
MRR - Minimum Rediscount Rate
MRR - Minimum Residual Radioactivity
), increased 36.5% to $7,150,211 as compared to $5,238,570 for the same period in 2005. Net income for the quarter ended March 31, 2006 increased 23.5% to $279,767 or $0.03 per diluted share compared to $226,499 or $0.03 per diluted share for the same period in 2005. Net Income for the trailing twelve months ended March 31, 2006 and 2005 was $985,704 and $457,303, respectively. E[acute accent]Earnings before interest, taxes and depreciation and amortization ("EBITDA") for the quarter ended March 31, 2006 increased 16.8% to $1,358,855 as compared to $1,163,239 for the same period in 2005. EBITDA for the trailing twelve months ended March 31, 2006 and 2005 was $5,108,358 and $4,016,958, respectively, a 27.2% increase. E[acute accent]The Company affirms its guidance issued on March 30, 2006 that gross revenues, consisting primarily of monthly recurring revenue (MRR), will increase by 34% to $30,000,000 while also projecting a 29% increase in earnings to $1,200,000 for the year ending December 31, 2006. This projection does not assume any contribution to anticipated results from future acquisitions. E[acute accent]Howard M. Siegel, AMAC's Chief Executive Officer, commented, "We continue to observe the beneficial effects of our roll-up strategy of Telephone Answering Services and our migration from a basic PERS product offering to a comprehensive telehealth offering. We also expect to achieve improved gross profit margins through the consolidation of both our fulfillment and engineering facilities into the new centralized operation in Long Island City, New York by the end of 2006. Mr. Siegel further commented, "AMAC is committed to expanding its health and safety monitoring services division (HSMS) to include call-center-based, health and disease management services as an adjunct component of its remote patient monitoring platform. This expansion is expected to allow AMAC to compete more effectively for business from a broader spectrum of organizations involved in the management and care of chronic disease."

E[acute accent]About American Medical Alert Corp.

E[acute accent]AMAC is a healthcare communications company dedicated to the provision of support services to the healthcare community. AMAC's product and service portfolio includes Personal Emergency Response Systems (PERS) and emergency response monitoring, electronic medication reminder devices, disease management monitoring appliances and healthcare communication solutions services. AMAC operates seven communication centers under local trade names: HLINK OnCall, Long Island City, NY, North Shore TAS, Port Jefferson, NY, Live Message America, Audubon, NJ, ACT Teleservice, Newington, CT and Springfield, MA, MD OnCall, Cranston RI and Capitol Medical Bureau Rockville, MD to support the delivery of high quality, healthcare communications.

E[acute accent]Use of Non-GAAP Financial Information

E[acute accent]In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP") included in this press release, the Company has provided information regarding certain non-GAAP financial measure. This measure is "earnings before interest, taxes and depreciation and amortization ("EBITDA")". Such information is reconciled to its closest GAAP measure in accordance with the Securities and Exchange Commission rules and is included in the attached supplemental data. E[acute accent]Management believes that the non-GAAP financial measure used in this press release is useful to both management and investors in their analysis of the Company's financial position and results of operations. Management believes that EBITDA is a useful measure of the Company's financial performance as it is an indicator of the Company's ability to generate cashflow to make acquisitions, reinvest in new telehealth products and liquidate liabilities. Management also uses EBITDA for planning purposes to determine appropriate levels of operating and capital investments. E[acute accent]EBITDA is a non-GAAP financial measure and although management and some members of the investment community utilize it to measure financial performance, EBITDA should not be viewed as a substitute for financial data prepared in accordance with GAAP or as a measure of profitability. Additionally, the non-GAAP financial measure as presented by AMAC may not be comparable to similarly titled measures reported by other companies.

E[acute accent]Forward Looking Statements

E[acute accent]This press release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "believe," "estimate," "anticipate," "continue," or similar terms, variations of those terms or the negative of those terms. 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-Q, and other filings and releases. These include uncertainties relating to government regulation, technological changes, costs relating to ongoing FCC remediation efforts, our expansion plans, our contract with the City of New York and product liability risks. E[acute accent]Statements of income for the three months ended March 31, 2006 and 2005 and balance sheets as of March 31, 2006 and December 31, 2005 are attached.
AMAC SELECTED FINANCIAL DATA

                                 3/31/2006    3/31/2005
                                ----------- ------------

Revenues                        $7,150,211   $5,238,570

Net Income                        $279,767     $226,499

Net Income per Share
     Basic                           $0.03        $0.03
     Diluted                         $0.03        $0.03

Basic Weighted Average
 Shares Outstanding              8,774,571    8,096,557

Diluted Weighted Average
 Shares Outstanding              9,271,554    8,879,144


CONDENSED BALANCE SHEET
                                             March 31,   December 31,
                                               2006         2005
                                            ------------ ------------
                                            (Unaudited)
ASSETS

Current Assets                               $8,177,848   $8,343,781
Fixed Assets - Net                            8,644,085    7,810,658
Other Assets                                 13,709,405   10,440,897

                                            ------------ ------------
     Total Assets                           $30,531,338  $26,595,336
                                            ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities                          $5,540,178   $4,495,784
Deferred Income Tax                           1,037,000      971,000
Long-term Debt                                4,275,562    2,429,396
Other Liabilities                               457,168      315,230

                                            ------------ ------------
     Total Liabilities                      $11,309,908   $8,211,410

Stockholders' Equity                         19,221,430   18,383,926
                                            ------------ ------------
     Total Liabilities and Stockholders'
      Equity                                $30,531,338  $26,595,336
                                            ============ ============


Earnings before interest, taxes and depreciation and amortization
for the three months and trailing twelve months ended March 31, 2006
and 2005.

                          Add:                   Less:
                 3/31/06  12/31/2005   Subtotal  3/31/2005    Total
               ---------- ----------- ---------- ----------

Net Income       279,767     932,436  1,212,203    226,499    985,704
Add Backs:
  Taxes          238,000     866,000  1,104,000    210,000    894,000
  Interest        62,042      52,638    114,680     12,404    102,276
  Depreciation
   & Amort.      779,046   3,061,668  3,840,714    714,336  3,126,378

               ----------                                   ----------
      EBITDA   1,358,855                                    5,108,358
               ==========                                   ==========


                          Add:                   Less:
                 3/31/05  12/31/2004   Subtotal  3/31/2004    Total
               ---------- ----------- ---------- ----------

Net Income       226,499     410,606    637,105    179,802    457,303
Add Backs:
  Taxes          210,000     398,000    608,000    175,000    433,000
  Interest        12,404      58,184     70,588     15,917     54,671
  Depreciation
   & Amort.      714,336   3,071,424  3,785,760    713,776  3,071,984

               ----------                                   ----------
      EBITDA   1,163,239                                    4,016,958
               ==========                                   ==========
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:May 15, 2006
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