AMERICAN SHARED HOSPITAL SERVICES ANNOUNCES TERMINATION OF NEGOTIATIONS TO SELL ITS INTEREST IN GK FINANCING, LLC San Francisco, CA

AMERICAN SHARED HOSPITAL SERVICES ANNOUNCES TERMINATION OF NEGOTIATIONS TO SELL ITS INTEREST IN GK FINANCING, LLC

San Francisco, CA, May 28, 2009 AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading provider

of turnkey technology solutions for advanced radiosurgical and radiation therapy services,

announced today that its previously disclosed preliminary negotiations with an unaffiliated third

party to sell the Company s 81% indirect interest in GK Financing, LLC have been terminated.

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, 2008 and Form 10-Q for the quarter ended