American Shared Hospital Services Announces 1995 Year End Financial Results.

SAN FRANCISCO--(BUSINESS WIRE)--April 1, 1996--American Shared Hospital Services (AMEX, PSE: "AMS" for common stock, AMEX: "AMS.A" for notes) Monday announced financial results for the fiscal year ended December 31, 1995.

The company reported revenue of $34,077,000 for the year ended December 31, 1995, compared with revenue of $38,545,000 for the year ended December 31, 1994. The company reported net income of $7,344,000 or $1.75 per share for the year ended December 31, 1995, compared with a net loss of $5,175,000 or $1.80 per share for the year ended December 31, 1994.

The 1995 net income included a $19,803,000 extraordinary gain on the early extinguishment of debt related to the Company's repurchase of approximately 96% of its outstanding senior subordinated notes in May 1995, and $4,425,000 of writedowns of equipment and intangible assets. The 1994 loss included a $362,000 net gain on early extinguishment of debt and a $3,294,000 gain on sale of assets.

Commenting on the 1995 fiscal year financial results, Ernest A. Bates, M.D., Chairman and CEO of American Shared, said, "We have completed the restructure of our capital debt and equipment financing, including curing all our financial defaults. The final step in that process is our S-1 Registration Statement, which we expect to be finalized in early April for the common shares and warrants issued in the restructuring.

"In recent years, we have reduced the outstanding principal of our Senior Subordinated Notes from the original $30 million, to less than $1 million. The restructuring of equipment financing in 1995 brings our monthly equipment debt service more in line with current cash flow from the related customer routes.

"As part of our financial restructuring we obtained new lines of credit for $8 million, with proceeds used to refinance debt and for working capital. We have just negotiated a further $500,000 commitment in our working capital revolving line of credit, which was part of that new financing.

"Our overall revenues were lower in 1995 than in 1994, due primarily to the sale in December 1994 of several respiratory therapy contracts. Our MRI revenues in 1995 were 11% above those in 1994, and we are continuing to experience quarter-to-quarter growth in MRI revenues. We had approximately 40 more customers at year end 1995, compared with the year before.

"Our two new subsidiaries started in 1995 are expected to grow during 1996. GK Financing, LLC (in which we have an 81% interest) now operates two Gamma Knife radiosurgery units at major university medical centers. It has ordered four additional units, which we expect to commit to customers during the year. Our ACHES subsidiary (African American Church Health & Economic Services) will soon launch operations in the east, adding to its California base."

American Shared Hospital Services is a diversified medical services company, with interests in mobile and shared diagnostic imaging, radiotherapy, and insurance services. Headquarters are in San Francisco. -0-

                American Shared Hospital Services
                        Financial Results

                                            (Audited)
                                            Year ended
                                           December 31,
                                  -------------------------------
                                      1995               1994
                                      ----               ----
Revenues                          $34,077,000        $38,545,000

Loss before extraordinary item   ($12,459,000)(1)   ($ 5,537,000)(2)

Extraordinary item (gain on
 early extinguishment of debt)    $19,803,000        $   362,000

Net income (loss)                 $ 7,344,000       ($5,175,000)

Primary and Fully
 Diluted Per Share Amounts:

Loss before extraordinary item         ($2.96)            ($1.93)
Extraordinary item                       4.71               0.13
                                       -------            -------
Net income (loss)                       $1.75             ($1.80)

Number of common shares and
 equivalents:

Primary                             4,201,000           2,867,000
Fully Diluted                       4,204,000           2,867,000

(1) Includes $4,425,000 writedowns of equipment and intangible
     assets.
(2) Includes $3,294,000 gain on sale of assets.-0-

CONTACT: American Shared Hospital Services

Richard Magary, 415/788-5300 (8 a.m.-5 p.m. M-F)

or 415/658-8003 After Hours or 415/431-2359 (Home)