American Shared Hospital Services Declares Annual Dividend.

Business Editors, Health/Medical Writers

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 5, 2003

AMERICAN SHARED HOSPITAL SERVICES (AMEX,PCX:AMS), the world leader in providing Gamma Knife(R) radiosurgery services, announced today that it will continue its annual dividend to common shareholders. Shareholders of record on March 14, 2003 will be paid a dividend of $0.12 per common share on April 4, 2003.

Ernest A. Bates, M.D., Chairman and CEO of American Shared, said, "We are pleased to announce the continuation of our dividend policy. This dividend provides our shareholders with a 3% yield, based on yesterday's common stock price, in addition to the 36% stock appreciation in 2002."

American Shared Hospital Services (www.ashs.com)

American Shared Hospital Services is building a profitable medical services company in an under served niche -- turnkey technology solutions for advanced radiosurgical procedures. The Company's core business is supplying hospitals with the Gamma Knife -- a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain). The Gamma Knife, the gold standard in radiosurgery, reduces surgical risk and patient discomfort, resulting in a shorter hospital stay and lower risk of complications. In most cases, Gamma Knife patients resume their normal activities within a few days of treatment, compared to weeks or months for patients who undergo conventional surgery. More than 195,000 patients worldwide have already received this treatment. American Shared Hospital Services is the world leader in providing Gamma Knife radiosurgery services.

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 its IMRT and The Operating Room for the 21st Century(SM) programs. 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, 2002, its Quarterly Report on Form 10-Q for the periods ended March 31, 2002, June 30, 2002 and September 30, 2002 and its definitive Proxy Statement for the Annual Meeting of Shareholders held on June 6, 2002.