American Shared Hospital Services Announces Repurchase of Securities.

Business Editors/Health & Medical Writers

SAN FRANCISCO--(BW HealthWire)--May 31, 2001

American Shared Hospital Services (AMEX,PCX:AMS), www.ashs.com, announced that it has completed the repurchase of 40,000 shares of the Company's common stock owned by the Company's Chairman and Chief Executive Officer, Ernest A. Bates, M.D. The common stock was repurchased by the Company at a discount to the closing price on Thursday, May 17, 2001.

Following the repurchase, American Shared has 3,567,225 shares of common stock issued and outstanding and 5,288,520 fully diluted shares outstanding.

American Shared Hospital Services (www.ashs.com)

American Shared Hospital Services is a medical services company, with interests in radiosurgery services (through its 81% interest in GK Financing, LLC) and its program for The Operating Room for the 21st Century(SM).

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 and the risks of developing The Operating Room for the 21st Century(SM). 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, 2000, its Quarterly Report on Form 10-Q for the period ended March 31 and its definitive Proxy Statement dated April 12, 2001 for the Annual Meeting of Shareholders held on May 17, 2001.