American Shared Hospital Services Signs New Gamma Knife Contract With Bayfront Medical Center in St. Petersburg, Florida.

Medical & Health Writers/Business Editors

SAN FRANCISCO--(BW HealthWire)--July 24, 2001

American Shared Hospital Services (AMEX,PCX:AMS), the world's largest owner of Gamma Knife radiosurgery services, announced today that it has signed an agreement with Bayfront Medical Center in St. Petersburg, Florida.

Craig K. Tagawa, Chief Operating Officer of American Shared said, "We are pleased to enter into a Gamma Knife agreement with Bayfront Medical Center, a leader in neuro-oncology services in St. Petersburg, Florida. Bringing Gamma Knife services to the St. Petersburg/Tampa Bay metropolitan area, one of the largest metropolitan areas without Gamma Knife services, will be a tremendous benefit to the community. We are proud to have Bayfront Medical Center join our existing 12 operating Gamma Knife units.

"Gamma Knife radiosurgery is a non-invasive procedure that 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."

"Bayfront Medical Center is looking forward to providing our patients with Gamma Knife services," said Karen Kent, Bayfront's director of oncology. "We're working with GK Financing, LLC to make this happen."

About American Shared Hospital Services and the Gamma Knife

American Shared Hospital Services, through its 81% majority owned subsidiary, GK Financing, LLC, is the world's largest owner of Gamma Knife centers. The Company's core business is supplying hospitals with the Gamma Knife -- a non-invasive treatment of malignant and benign brain tumors, vascular malformations and trigeminal neuralgia facial pain. The Gamma Knife, the gold standard in radiosurgery, uses three dimensional computer modeling to target a high dose of radiation at abnormal tissue. More than 150,000 patients worldwide have already received this treatment.

The Company currently owns 12 Gamma Knife centers in 11 states:

-- USCF Medical Center, San Francisco, CA,

-- Hoag UCI Gamma Knife Center, Newport Beach, CA,

-- Southwest Texas Methodist Hospital, San Antonio, TX,

-- Yale-New Haven Gamma Knife Center, New Haven, CT,

-- Kettering Medical Center, Kettering, OH,

-- University of Arkansas for Medical Sciences, Little Rock, AR,

-- New England Medical Center, Boston, MA,

-- Froedtert Memorial Lutheran Hospital, Milwaukee, WI,

-- JFK Medical Center, Edison, NJ,

-- Sunrise Hospital and Medical Center, Las Vegas, NV,

-- Central Mississippi Medical Center, Jackson, MS,

-- OSF Saint Francis Medical Center, Peoria, IL.