American Shared Hospital Services Declares Regular Quarterly Cash Dividend.

SAN FRANCISCO -- AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS) (PCX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.0475 per common share. The dividend will be paid on July 16, 2007 to shareholders of record on July 2, 2007.

Chairman and CEO Ernest Bates, M.D., said, "We believe that it is important to provide our shareholders this regular quarterly cash dividend even as we invest in building the foundation for AMS' sustained long-term growth. Our strategy to leverage AMS' creative financing solutions by offering our clinical partners the full range of technology solutions for radiation oncology delivery has positioned AMS to be a prime beneficiary of the exciting new therapeutic devices now beginning to enter the market, including proton beam radiation therapy (PBRT) and other advanced systems. This dividend is a tangible sign of our confidence in AMS' future."

This will be the 19th cash dividend paid by AMS since the Company initiated a dividend program in 2001. Since October 2003, AMS has paid its shareholders cash dividends every quarter, and has either maintained or increased the quarterly dividend since that time.

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 concept. Through its equity investment in Still River Systems, AMS also 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.

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, 2006, quarterly report on Form 10-Q for the three months ended March 31, 2007, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 14, 2007.