American Shared Hospital Services announces 1994 year-end financial results.

SAN FRANCISCO--(BUSINESS WIRE)--March 31, 1995--American Shared Hospital Services (AMEX/PSE:AMS, for common stock, AMEX:AMS.A for notes) Friday announced financial results for the fiscal year ended December 31, 1994.

The Company reported revenue of $38,545,000 for the year ended December 31, 1994, compared with revenue of $39,485,000 for the year ended December 31, 1993. The Company reported a net loss of $5,175,000 or $1.80 per share for the year ended December 31, 1994, compared with a net loss of $15,644,000 or $5.46 per share for the year ended December 31, 1993.

The 1994 loss included a $362,000 net gain on early extinguishment of indebtedness, and a $3,294,000 gain on sale of assets, primarily from the Company's sale in December 1994 of eight respiratory therapy management contracts and related businesses. The 1993 loss included writedowns of intangible assets and of equipment of $5,308,000 and $443,000 respectively.

Commenting on the 1994 fiscal year financial results, Ernest A. Bates, M.D., Chairman and CEO of American Shared, said, "Our 1994 financial results reflect a significantly reduced loss of about $5.2 million or $1.80 per share in 1994, compared with about $15.6 million or $5.46 per share in 1993. This resulted from increased revenue in profitable parts of our business, continued expense reductions, the gain from sale of certain respiratory therapy management contracts, and the lack of asset writedowns in 1994 versus 1993.

"MRI revenues, the largest component of our business, increased by $2.2 million in 1994 over the previous year, and radiosurgery revenues were up about $140,000. Total costs and expenses were down about $3.1 million or 6% in 1994, while total revenues were down about $1 million or 2% in 1994, as compared with 1993.

"At the end of 1994, we completed our previously-announced sale of certain respiratory therapy contracts, to further our goal of concentrating on state-of-the-art diagnostic imaging services and other new technologies such as the Gamma Knife. Proceeds from that sale were used to reduce our debt by about $3.3 million at December 31, 1994.

"We are continuing the progress toward completion of our financial restructuring. In December, we completed the previously-announced restructuring of the leases with our major equipment lessor. Our Foothill line of credit expired on February 28, 1995, and we are continuing to seek a replacement lender. We have scheduled a Shareholder meeting for April 7, 1995, to obtain approval of our proposed restructuring of the majority of our senior subordinated debt. We will continue our efforts in 1995 to expand profitably in areas such as MRI, Gamma Knife and other areas related to our core business."

American Shared Hospital Services provides Magnetic Resonance Imaging (MRI), Gamma Knife radiosurgery, Computed Tomography (CT), and other medical diagnostic imaging and therapy services, as well as Respiratory Therapy services to hospitals and other medical providers on a shared delivery and/or contract management basis. Headquarters are in San Francisco.

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                 American Shared Hospital Services
                        Financial Results
             (In thousands, except per share amounts)

                         (Unaudited)               (Audited)
                      Three Months Ended           Year Ended
                         December 31,              December 31,
                       1994       1993          1994        1993

Revenues           $ 9,836     $ 9,286       $38,545      $39,485
Net income (loss)  $   573(a) ($ 9,913)(b)  ($ 5,175)(c) ($15,644)(b)
Per Share Amounts:
Net income (loss)  ($ 0.20)    ($ 3.46)      ($ 1.80)     ($ 5.46)
Number of common
shares and
equivalents          2,867       2,867         2,867        2,863

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(a) Includes gain on sale of assets of $3,120,000 in fourth quarter 1994.

(b) Includes writedowns of equipment and intangibles of $5,751,000 in fourth quarter 1993.

(c) Includes gain on sale of assets of $3,294,000 and gain on early extinguishment of indebtedness of $362,000.

CONTACT: American Shared Hospital Services, San Francisco

Richard Magary, 415/788-5300 (w)

415/658-8003 (after hours)

415/431-2359 (r)