American Shared Hospital Services Declares Quarterly Cash Dividend of $0.0475 Per Share.

SAN FRANCISCO -- American Shared Hospital Services (AMEX:AMS)(PCX:AMS), the leading provider of Gamma Knife(R) radiosurgery services, announced today that its Board of Directors has declared a quarterly cash dividend of $0.0475 per common share. The dividend will be paid on October 17, 2005 to shareholders of record on October 3, 2005.

"This is the 12th cash dividend paid by American Shared Hospital Services since we initiated the dividend program in 2001," said Chairman and CEO Ernest Bates, M.D. "AMS has paid its shareholders cash dividends every quarter since September 2003, and has either maintained or increased the quarterly dividend since that time."

About AMS

American Shared Hospital Services is building a profitable medical services company in an underserved 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 250,000 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(R) 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, 2004, its Quarterly Report on Form 10-Q for the periods ended March 31, 2005 and June 30, 2005 and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 16, 2005.