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

AMERICAN SHARED HOSPITAL SERVICES

REPORTS 2008 THIRD QUARTER RESULTS

San Francisco, CA, November 4, 2008 AMERICAN SHARED HOSPITAL SERVICES (NYSE Alternext US:AMS), a

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

services, today announced financial results for the third quarter and first nine months of 2008.

Third Quarter Results

For the three months ended September 30, 2008, revenue decreased 2.6% to $4,532,000 when compared

to revenue of $4,652,000 for the third quarter of 2007. Net income for the third quarter of 2008

was $25,000, or $0.00 per diluted share. This compares to net income for the third quarter of 2007

of $268,000, or $0.05 per diluted share.

Revenue from our clinical sites in operation more than one year increased slightly in this year s

third quarter compared to the third quarter of 2007, although total revenue decreased because we

had fewer units in operation. Our third quarter financial results also reflected the higher

depreciation and interest expenses we anticipated as we upgrade our portfolio of radiosurgical and

radiation therapy assets with the latest proton beam radiation therapy (PBRT) systems, Leksell

Gamma Knife PerfexionTM systems, IGRT systems and other next-generation devices for

radiation oncology delivery, said Chairman and Chief Executive Officer Ernest A. Bates, M.D.

Demand for our creative financing solutions appears to be rising, as we are experiencing a high

volume of financing requests for the entire range of radiation therapy equipment we offer. With

our strong cash flow and balance sheet, we are prepared to take advantage of these opportunities

and continue implementing our growth plan, Dr. Bates said. Earnings before interest, taxes,

depreciation and amortization (EBITDA) was $2,273,000 for this year s third quarter and $7,298,000

for this year s first nine months, compared to EBITDA of $2,368,000 and $7,002,000 for the third

quarter and first nine months of 2007, respectively.

Interest in affordable, single-treatment-room proton beam radiation therapy devices continues to

grow, and AMS is especially well-positioned to benefit. Last month we announced an agreement with

an illustrious group of radiation oncologists to provide a Monarch 250TM PBRT facility

at Long Beach Memorial Medical Center in Long Beach, California. Subject to approval by the Board

of Directors of LBMMC and FDA clearance of the Still River PBRT device, we and our partners hope to

begin treating patients at this single-treatment-room facility by 2011, Dr. Bates said. AMS

previously has announced contracts to place PBRT devices at Tufts Medical Center in Boston and

Orlando Regional Healthcare (with professional services to be provided exclusively by M.D. Anderson

Cancer Center Orlando).

Dr. Bates continued, The Still River compact proton beam system has reached a major technical

manufacturing milestone and is making significant progress toward FDA approval. I personally

believe the Still River compact proton beam system, of which we are part owner, is the first major

disruptive innovation in the history of radiation therapy. The Still River proton beam system

combines scientific advantages with increased affordability, resulting in better cancer treatment

results for more patients.

We also are pleased to report that our fourth Gamma Knife Perfexion system began treating patients

at USC University Hospital in July as scheduled. Backed by overwhelming clinical evidence, the

Perfexion Gamma Knife has established itself as the gold standard for treatment of certain

metastatic brain tumors (approximately 170,000 cases diagnosed annually). I am pleased to note

that AMS owns more Perfexion Gamma Knife and Still River proton beam systems than any other

company, Dr. Bates concluded.

For the nine months ended September 30, 2008, revenue increased to $14,359,000 compared to

$14,311,000 for the first nine months of 2007.

Net income for the first nine months of 2008 was $394,000, or $0.08 per diluted share. This

compares to net income for the first nine months of 2007 of $773,000, or $0.15 per diluted share.

Balance Sheet Highlights

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

$9,853,000. This compares to cash, cash equivalents, and short and long-term securities of

$9,341,000 at September 30, 2007. Shareholders equity at September 30, 2008 was $20,040,000, or

$3.99 per outstanding share. This compares to shareholders equity at September 30, 2007 of

$19,357,000, or $3.85 per outstanding share.

Earnings Conference Call

American Shared has scheduled a conference call at 12:00 p.m. PT (3:00 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 (800) 299-5919, pass code 23136023.

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 and June 30, 2008, and the definitive Proxy Statement for the

Annual Meeting of Shareholders held on June 20, 2008.

AMERICAN SHARED HOSPITAL SERVICES

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