AMERICAN SHARED HOSPITAL SERVICES ANNOUNCES CONTRACT TO SUPPLY A LEKSELL GAMMA KNIFE PERFEXION SYSTEM TO KETTERING MEDICAL CENTER IN OHIO San Francisco, CA

AMERICAN SHARED HOSPITAL SERVICES ANNOUNCES

CONTRACT TO SUPPLY A LEKSELL GAMMA KNIFE PERFEXION SYSTEM

TO KETTERING MEDICAL CENTER IN OHIO

San Francisco, CA, December 18, 2008 AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a

leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy

services, announced today that it has entered into a contract to supply a Leksell Gamma Knife

PerfexionTM system to Kettering Medical Center, Kettering Ohio. This new Perfexion

system, the sixth placed by AMS to date, will replace an existing Gamma Knife supplied by AMS and

is expected to begin treating patients in the first half of 2009.

Kettering Medical Center is renowned for bringing the latest medical technology to patients in

southwest Ohio. We are especially pleased to be one of the first cancer centers in the United

States to offer the Leksell Gamma Knife Perfexion system, which refines and expands the therapeutic

potential for radiosurgery procedures in the brain, skull, cervical spine and head neck regions

and is widely regarded as the most advanced stereotactic radiosurgery system available today, said

Walter Sackett, Vice President of Clinical Services for Kettering Medical Center.

AMS Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, Kettering Medical Center has

been a Gamma Knife customer of ours for many years. We are pleased that our creative financing

solutions have made possible this upgrade to next-generation radiosurgery technology at an

About Leksell Gamma Knife Perfexion

Leksell Gamma Knife Perfexion maintains full clinical compatibility with the classic Leksell Gamma

Knife and is supported by efficacy and outcome data from 400,000 treated patients worldwide and

thousands of peer-reviewed scientific articles, making it a proven choice for radiosurgery of the

brain. According to Elekta, Leksell Gamma Knife Perfexion reduces unwanted body dose to the

patient by up to 100 times compared with competing technologies, which is particularly important

for treatment of children and women of childbearing age, and allows for a dramatically increased

treatable volume, which is expected to increase the number of patients that can benefit from Gamma

Knife surgery. Elekta estimates that the fully automated and efficient single push-button approach

can save 3-5 working weeks of physician time per year at an average Gamma Knife center.

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

equipment, 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 preferred

stock investment in Still River Systems, AMS also plans to complement these services with the

Monarch 250TM 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 and radiation therapy businesses, the risks of developing The Operating Room for

the 21st Century program, 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, 2007, the

Quarterly Report on Form 10-Q for the quarters ended March 31, 2008, June 30, 2008 and September 30, 2008,

and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 20, 2008.