AMERICAN SHARED HOSPITAL SERVICES REPORTS 2008 SECOND QUARTER RESULTS San Francisco, CA

AMERICAN SHARED HOSPITAL SERVICES

REPORTS 2008 SECOND QUARTER RESULTS

San Francisco, CA, July 29, 2008 AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading

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

today announced financial results for the second quarter and first half of 2008.

Second Quarter Results

For the three months ended June 30, 2008, revenue increased 4% to $5,102,000 when compared to

revenue of $4,910,000 for the second quarter of 2007, and increased 8% when compared to revenue of

$4,725,000 for the first quarter of 2008. Net income for the second quarter of 2008 was $213,000,

or $0.04 per diluted share. This compares to net income for the second quarter of 2007 of

$280,000, or $0.06 per diluted share, and to net income for the first quarter of 2008 of $156,000,

or $0.03 per diluted share.

This sequential improvement in our operating performance speaks to the quality of our portfolio of

radiosurgical and radiation therapy assets. It also shows how our strategy to use AMS creative

financing solutions to make proton beam radiation therapy (PBRT) systems, Leksell Gamma Knife

PerfexionTM systems, IGRT systems and other next-generation devices for radiation

oncology delivery available and affordable to our clinical partners and their patients has put us

on the path for long-term growth, said Chairman and Chief Executive Officer Ernest A. Bates, M.D.

The increase in second quarter revenue reflected a 12% increase in same-unit volume versus prior

year at the Company s 18 Gamma Knife centers, as well as the contribution of the IGRT and related

equipment and services AMS began supplying a customer in September 2007, recent upgrades to several

existing Gamma Knife units, and the impact of the installation of three advanced Leksell Gamma

Knife PerfexionTM systems that began treating patients in last year s fourth quarter,

this year s first quarter, and this year s second quarter, respectively. Our newest customer, USC

University Hospital in Los Angeles, began treating patients on its Perfexion system in July. This

site will contribute to our results beginning in the third quarter, Dr. Bates said.

Cash flow, as measured by earnings before interest, taxes, depreciation and amortization, increased

to $2,657,000 for this year s second quarter and $5,025,000 for this year s first half, compared

to EBITDA of $2,381,000 and $4,634,000 for the second quarter and first six months of 2007,

For the six months ended June 30, 2008, revenue increased to $9,827,000 compared to $9,659,000 for

the first six months of 2007.

Net income for the first six months of 2008 was $369,000, or $0.07 per diluted share. This

compares to net income for the first six months of 2007 of $505,000, or $0.10 per diluted share.

Balance Sheet Highlights

At June 30, 2008, AMS reported cash, cash equivalents, and short and long-term securities of

$10,352,000. At June 30, 2007, AMS reported cash, cash equivalents, and short and long-term

securities of $10,497,000. Shareholders equity at June 30, 2008 was $19,980,000, or $3.97 per

outstanding share. This compares to shareholders equity at June 30, 2007 of $19,071,000, or $3.80

per outstanding share.

Earnings Conference Call

American Shared has scheduled a conference call at 1:00 p.m. PT (4:00 p.m. ET) today. To

participate in the live call, dial (888) 895-5479 at least 5 minutes prior to the scheduled start

time. A simultaneous WebCast of the call may be accessed through the Company s website,

www.ashs.com, or through CCBN, www.earnings.com (individual investors) or

www.streetevents.com (institutional investors). A replay will be available for 30 days at

these same internet addresses, or by calling (888) 843-8996, pass code 22335173.

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 quarter ended March 31, 2008, and the definitive Proxy Statement for the Annual Meeting of

Shareholders held on June 20, 2008.

AMERICAN SHARED HOSPITAL SERVICES

Selected Financial Data