American Shared Hospital Services announces completion of debt restructuring.

SAN FRANCISCO--(BUSINESS WIRE)--May 18, 1995--American Shared Hospital Services (AMEX, PSE: AMS for common stock; AMS.A for 16 1/2% Notes) Thursday announced the Closing of its new Debt Restructuring arrangements, which were announced last week.

The Company repurchased, on May 17, $17,694,000 or approximately 96% of its Senior Subordinated Notes from four Noteholders. The Holders received $3,892,681, or approximately $220 in cash for each $1,000 principal amount of their Notes, plus a combination of newly issued Common Stock and Warrants which equal approximately 25% of the Company's fully diluted common shares.

Today's Closing supersedes a previously-announced restructuring, pursuant to which the four Noteholders would have received approximately 90% of the Company's common equity.

The Company also completed funding of two new credit facilities totalling $8 million, which provided funds for the Notes repurchase and working capital, as well as term debt reduction and certain equipment refinancing.

Approximately $773,000 of the Company's Senior Subordinated Notes held by others were not repurchased, and remain outstanding. The Company today paid past due, accrued interest on those Notes, for the period from October 15, 1992 through April 15, 1995.

American Shared also said today that its Annual Meeting of Shareholders, originally scheduled for April 7, 1995, will be held today (May 18) at 2:00 p.m. at the Company's San Francisco office. Since nominees of the selling Noteholders have withdrawn their names, the six existing members of the Board of Directors will be re-elected.

Ernest A. Bates, M.D., Chairman and CEO of American Shared, said, "We are extremely pleased that our capital restructuring is completed and that all financial defaults are cured. We appreciate the patience shown by our Noteholders and by our longtime shareholders while we worked for this restructuring. Our goals for the rest of 1995 include aggressive management for new revenue and continued expense control, along with development of new opportunities in areas such as Interventional MRI and radiosurgery."

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.

CONTACT: American Shared Hospital Services

Richard Magary, 415/788-5300 (8am-5pm, M-F)

415/658-8003 (after hours)

415/431-2359 (home)