American Shared Hospital Services Reports First Quarter 2019 Results Proton Revenue Increased 34.8% San Francisco, CA

American Shared Hospital Services Reports

First Quarter 2019 Results

Proton Revenue Increased 34.8%

San Francisco, CA - May 9, 2019 -

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 2019.

Chairman and Chief Executive Officer Ernest

A. Bates, M.D., said, "Our Proton Therapy business at Orlando Health - UF Health Cancer Center continues to deliver

to expectations, posting steady procedural gains across varied indications. We remain in active discussions as we develop our Proton

Therapy business pipeline, including a Hyperscan upgrade of two systems that we plan to place into new markets. Turning to Gamma

Knife, as expected, we initiated patient treatments early in the first quarter at Methodist Hospitals in Merillville, Indiana,

which should support operations. While still early, we are pleased with traction gained in the first quarter, noting a 6% sequential

increase in Gamma Knife procedures compared with the fourth quarter of 2018, resulting in a 10% sequential increase in revenue.

We also recently signed an agreement to upgrade the first of six Gamma Knife units to Icon, extending our 20-year relationship

with Kettering Medical Center in Ohio, allowing us to capture incremental revenue opportunities. Installation remains on schedule

for completion in the second half of 2019. We look forward to providing updates as we execute on our plans."

Financial Results for the Three Months

Ended March 31, 2019

For the three months ended March 31, 2019,

revenues increased 0.3% to $5,321,000 compared to revenues of $5,305,000 for the first quarter of 2018.

First quarter revenue for the Company's

initial proton therapy system installed at Orlando Health in Florida increased 34.8% to $1,642,000 compared to revenue for the

first quarter of 2018 of $1,218,000.

Revenue for the Company's Gamma Knife operations

decreased 7.5% to $3,411,000 for the first quarter of 2019 compared to $3,688,000 for the first quarter of 2018. The decline was

due to the expiration of two customer sites in April 2018 and January 2019.

Gross margin for the first quarter of 2019

decreased to $1,937,000 or 36.4% of revenue, compared to gross margin of $2,206,000 or 41.6% of revenue for the first quarter of

2018. This reflected an increase in operating costs, primarily maintenance and depreciation expense.

Net income for the first quarter of 2019

was $270,000, or $0.05 per share. This compares to net income for the first quarter of 2018 of $390,000, or $0.07 per share.

Adjusted EBITDA, a non-GAAP financial measure,

was $2,710,000 for the first quarter of 2019, compared to $2,677,000 for the first quarter of 2018.

Balance Sheet Highlights

At March 31, 2019, cash, cash equivalents,

and restricted cash was $2,399,000, compared to $1,792,000 at December 31, 2018. Shareholders' equity at March 31, 2019 was $31,479,000,

or $5.51 per outstanding share. This compares to shareholders' equity at December 31, 2018 of $31,048,000, or $5.43 per outstanding

Conference Call and Webcast Information

American 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 1 (800) 446-1671 at least 5 minutes prior

to the scheduled start time and mention confirmation number 48595189. 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 until May 23, 2019 at the same internet addresses, or by dialing

1 (888) 843-7419 and entering 48595189# when prompted.

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 proton therapy, and the latest IGRT and IMRT systems.

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 (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, 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, 2018, and the definitive Proxy Statement for

the Annual Meeting of Shareholders to be held on June 21, 2019.

Non-GAAP Financial Measure

Adjusted EBITDA, the non-GAAP measure 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.

American Shared Hospital Services

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

Chairman and Chief Executive Officer

PCG Advisory, Inc., Investor Relations

American Shared Hospital Services

Statement of Operations

American Shared Hospital Services

American Shared Hospital Services