American Shared Hospital Services comments on African-American church health and economic services.

SAN FRANCISCO--(BUSINESS WIRE)--May 23, 1995--American Shared Hospital Services (AMEX, PSE: "AMS" for common stock; AMEX: "AMS.A" for 16 1/2% Notes) today confirmed and clarified press reports last week that the Company is engaged in preliminary discussions regarding its participation in the formation of an integrated health services delivery company which would provide medical insurance coverage and health education to the African-American community, through existing church organizations. The working name for the proposed organization is African-American Church Health & Economic Services ("ACHES").

Discussions to date have been with African-American church and other community leaders, and with representatives of existing medical insurance companies.

The proposed initial mission of ACHES would be to develop and promote an integrated healthcare delivery system. The system would provide high quality services to the African-American community, utilizing African-American medical providers and others. The majority of the profits from the system would be retained and reinvested in the African-American community, through a foundation administered by its churches, for the economic advancement of that community.

Initially, ACHES' services would be provided, using the existing healthcare insurance programs and provider networks of Blue Cross of California. After further development, ACHES could establish its own Physician-Hospital Organization (PHO), in order to retain further economic and other benefits and control within the African-American community. ACHES would not initially establish a Health Maintenance Organization (HMO) as incorrectly reported elsewhere.

Ernest A. Bates, M.D., Chairman and CEO of American Shared said, "The African-American community represents a major economic sphere of influence in this country. It is one which should determine for itself, how and where its healthcare dollar is spent. ACHES would be a proactive representative of its community."

American Shared Hospital Services is a medical services company which provides medical diagnostic imaging and 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 (M-F 8-5 pac)

415/658-8003 (after hours)

415/431-2359 (home)