American Shared Hospital Services Announces Issuance of Determination of Need for Proton Beam Radiation Therapy System Planned for Tufts-New England Medical Center.

SAN FRANCISCO -- AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that the Commonwealth of Massachusetts has issued a Determination of Need for the Clinatron-250[TM] proton beam radiation therapy (PBRT) system that AMS has previously agreed to provide to Tufts-New England Medical Center (TUFTS-NEMC). Subject to the receipt of FDA approval for the Clinitron-250, AMS anticipates commencing its lease agreement with TUFTS-NEMC for the PBRT system in 2009.

Currently under development by Still River Systems, Littleton, Massachusetts, the Clinitron-250 is a single-treatment-room PBRT system incorporating proprietary technology that Still River believes may dramatically reduce the cost of implementing proton beam radiation therapy.

"PBRT is widely regarded as the optimal radiation treatment for a wide variety of cancers because of its significant clinical advantages compared to conventional high energy X-rays. With the issuance of a Determination of Need, TUFTS-NEMC is a step closer to becoming one of the first centers in the world to offer this advanced treatment modality to patients. We are pleased that TUFTS-NEMC has chosen to use AMS' creative financing solutions to help make this possible," said Ernest A. Bates, Chairman and CEO of AMS.

About Tufts-New England Medical Center

Founded in 1796 as the Boston Dispensary to care for sick and needy Bostonians, Tufts-New England Medical Center is the oldest health care facility in New England. It serves as the primary clinical and teaching affiliate of Tufts University School of Medicine. Tufts-NEMC is a world-class, academic medical institution that is home to both a full-service hospital for adults and the Floating Hospital for Children and has long been recognized as a leader in cancer care, cardiology, organ transplantation and pediatrics. For more information on Tufts-NEMC, access our web site, www.tufts-nemc.org.

About AMS

American Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is the world leader in providing Gamma Knife radiosurgery services, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain). The Company also offers the latest IGRT and IMRT systems, as well as its proprietary Operating Room for the 21st Century[R] concept. Through its equity investment in Still River Systems, AMS plans to complement these services with the Clinatron-250[TM] proton beam radiation therapy (PBRT) system, which has not yet been approved by the FDA. For more information, visit www.ashs.com.

Safe Harbor Statement

This press release may be deemed to contain certain forward-looking statements with respect to the financial condition, results of operations and future plans of American Shared Hospital Services, which involve risks and uncertainties including, but not limited to, the risks of the Gamma Knife business, the risks of developing its IMRT and The Operating Room for the 21(st) Century[R] programs, and the risks of investing in a development-stage company, Still River Systems, Inc., without a proven product. Further information on potential factors that could affect the financial condition, results of operations and future plans of American Shared Hospital Services is included in the filings of the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2005, the Form 10-Q for the three months ended March 31, 2006, June 30, 2006, and September 30, 2006, and the definitive Proxy Statement for the Annual Meeting of Shareholders on June 28, 2006.