AMERICAN SHARED HOSPITAL SERVICES FIRST QUARTER NET INCOME INCREASED 33.1% San Francisco, CA

QUARTER NET INCOME INCREASED 33.1%

Francisco, CA - May 10, 2018 -- AMERICAN SHARED HOSPITAL SERVICES (NYSE AMERICAN:AMS) (the "Company"),

a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today announced

financial results for the first quarter of 2018.

the three months ended March 31, 2018, rental income from medical services increased 8.0% to $5,305,000 compared to rental income

from medical services of $4,914,000 for the first quarter of 2017. Net income attributable to the Company for the first quarter

of 2018 increased 33.1% to $390,000, or $0.07 per basic and diluted share, compared to net income attributable to the Company

for the first quarter of 2017 of $293,000, or $0.05 per basic and diluted share.

quarter revenue for the Company's proton therapy system installed at The Marjorie and Leonard Williams Center for Proton Therapy

at Orlando Health - UF Health Cancer Center in Florida increased 5.5% to $1,218,000 compared to revenue of $1,155,000 for

the first quarter of 2017.

for the Company's Gamma Knife operations increased 1.9% to $3,688,000 for the first quarter of 2018 compared to $3,619,000 for

the first quarter of 2017. As previously announced, AMS lost one of its Gamma Knife units due to the expiration of its contract

term at the end of April 2017 and a second unit in August 2017. The decrease in revenue from these two sites was partially offset

by revenue from two new sites, in Lima, Peru and Lincoln, Nebraska, that began operations in the third quarter of 2017. Excluding

the two sites whose contracts expired in 2017 and the Company's two new sites, Gamma Knife revenue for the first quarter

of 2018 was consistent with the first quarter of 2017.

income from medical services gross margin for the first quarter of 2018 decreased to $2,206,000, or 41.6% of revenue, compared

to rental income from medical services gross margin of $2,346,000, or 47.7% of revenue for the first quarter of 2017. This reflected

an increase in costs of revenue primarily attributable to the initiation of maintenance and service costs for the Company's

proton system in Orlando.

pre-tax income, net of income attributable to non-controlling interest, increased 6.1% to $540,000 compared to non-GAAP pre-tax

income, net of income attributable to non-controlling interest, of $509,000 for the first quarter of 2017. Please refer to the

financial statements included with this press release for a reconciliation of GAAP to non-GAAP financial measures.

EBITDA, a non-GAAP financial measure, was $2,677,000 for the first quarter of 2018, compared to $2,616,000 for the first quarter

March 31, 2018, cash and cash equivalents was $2,751,000, compared to $2,152,000 at December 31, 2017. Shareholders' equity at

March 31, 2018 was $30,590,000, or $5.36 per outstanding share. This compares to shareholders' equity at December 31, 2017 of

$29,885,000, or $5.23 per outstanding share.

and Chief Executive Officer Ernest A. Bates, M.D., said, "This was a strong first quarter for AMS, with the increases in

revenue and earnings providing a solid foundation for the year.

profitability from our Orlando Health - UF Health Cancer Center proton therapy system was a significant contributor to first

quarter results. The success of our Orlando health system validates our belief of the economic and clinical soundness of a single

room proton therapy center and we remain confident that single treatment room proton therapy represents a significant long-term

growth opportunity from which AMS is uniquely positioned to benefit. With the steady flow of new studies demonstrating the clinical

benefits of this advanced therapeutic technology, we remain optimistic that the pace of proton treatment volume in Orlando will

increase in the average reimbursement rate compared to the Company's historical average generated higher first quarter revenue

in our Gamma Knife business as well. Volumes at our new sites in Lima, Peru and Lincoln, Nebraska continued to ramp up, and we

expect these sites to be accretive in 2018. While we lost one of our Gamma Knife units due to the expiration of its contract term

earlier this month, we recently announced a new contract to supply a Gamma Knife Perfexion system to Methodist Hospitals-Southlake

Campus, Merrillville, Indiana. This new Gamma Knife system is expected to begin treating patients in late 2018. We are

seeing a resurgence in interest for the Gamma Knife both in the United States and Latin America and anticipate additional new

sites coming on board. As always, we are pleased that AMS's risk sharing arrangements will make the Gamma Knife Perfexion

system available to even more brain tumor, trigeminal neuralgia and vascular malformation patients."

Shared has scheduled a conference call at 12:00 p.m. PDT (3:00 p.m. EDT) today. To participate in the live call, dial (800) 471-6718

at least 5 minutes prior to the scheduled start time, and mention confirmation number 46931110. A simultaneous WebCast of the

call may be accessed through the Company's website, www.ashs.com, or www.streetevents.com (institutional investors).

A replay will be available for 30 days at these same internet addresses, or by dialing (888) 843-7419 and entering 46931110# when

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 proton therapy, and the latest IGRT and

IMRT systems. AMS owns a common stock investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton

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 (including statements regarding the expected continued growth

in volume of the MEVION S250 system, the expansion of the Company's proton therapy business, and the timing of treatments by new

Gamma Knife systems) which involve risks and uncertainties including, but not limited to, the risks of variability of financial

results between quarters, 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 the timing, financing, and operations of the Company's proton therapy

business. 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, 2017, and the definitive Proxy Statement for

the Annual Meeting of Shareholders to be held on June 14, 2018.

Adjusted EBITDA, nor non-GAAP pre-tax income, the non-GAAP measures presented in this press release and supplementary information,

is a measure of performance under the accounting principles generally accepted in the United States ("GAAP"). These

non-GAAP financial measures should not be considered as substitute for, and investors should also consider, income before income

taxes, income from operations, net income attributable to the Company, earnings per share and other measures of performance as

defined by GAAP as indicators of the Company's performance or profitability. We use these non-GAAP financial measures as a means

to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental

information regarding our performance by excluding certain expenses and charges that may not be indicative of the operating results

of our recurring core business, such as stock-based compensation expense. We believe that both management and investors benefit

from referring to these non-GAAP financial measures in assessing our performance.

A. Bates, M.D., (415) 788-5300

and Chief Executive Officer

Berkman, (310) 477-3118