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

SHARED HOSPITAL SERVICES

SECOND QUARTER RESULTS

San Francisco, CA, August 10,

2010 - AMERICAN SHARED HOSPITAL

SERVICES - (NYSE AMEX:AMS), a leading provider of turnkey technology

solutions for advanced radiosurgical and radiation therapy services, today

announced financial results for the second quarter of 2010.

three months ended June 30, 2010, revenue decreased to $4,155,000 compared to

$4,583,000 for the second quarter of 2009, but increased sequentially compared

to $4,088,000 for the first quarter of 2010. Operating income for

this year's second quarter was $164,000 compared to $264,000 for the second

quarter of 2009. Pre-tax income was $195,000 and net income for the

second quarter of 2010 was $3,000, or $0.00 per share. This compares

to pre-tax income of $246,000 and net income of $26,000, or $0.01 per share, for

the second quarter of 2009.

number of Gamma Knife procedures performed during this year's second quarter

was essentially unchanged compared to the second quarter of 2009, but increased

6% sequentially. The decrease in revenue for this year's second

quarter versus prior year primarily reflected normal variation in the mix of

business between sites. Gross margin was approximately 42% for both

and administrative expenses for this year's second quarter increased to

$1,083,000 compared to $1,002,000 for the second quarter of 2009, and were

essentially flat sequentially. This increase was primarily to support

the Company's domestic and international growth initiatives.

flow, as measured by earnings before interest, taxes, depreciation and

amortization (EBITDA), was $2,001,000 for the second quarter and $3,985,000 for

the first six months of 2010, compared to $2,231,000 for the second quarter and

$4,140,000 for the first six months of 2009.

30, 2010, AMS reported cash, cash equivalents and certificates of deposit of

$9,527,000. This compares to cash and cash equivalents of $9,833,000 at December

31, 2009. Shareholders' equity at June 30, 2010 was $22,915,000, or

$4.98 per outstanding share. This compares to shareholders' equity at

December 31, 2009 of $22,755,000, or $4.95 per outstanding share.

six months ended June 30, 2010, revenue was $8,243,000 compared to $8,750,000

for the first six months of 2009. Net income for this year's first

half was $11,000, or $0.00 per diluted share. This compares to a net

loss for the first six months of 2009 of ($68,000), or ($0.01) per

and Chief Executive Officer Ernest A. Bates, M.D. said, "Procedure volume and

revenue in our Gamma Knife business continued to trend modestly higher in the

second quarter, as a new Leksell Gamma Knife PerfexionTM unit

went into service as planned at Smilow Cancer Hospital at Yale-New Haven, and we

benefited from improved performance at one of our sites where volume had been

sharply reduced in prior quarters due to physician turnover.

believe the pace of growth in our Gamma Knife business will

accelerate. In addition to the factors just mentioned, another

Perfexion device is scheduled to go into service in the third quarter at

Methodist Hospital in San Antonio, Texas, and Gamma Knife treatments at our

first international site, in Lima, Peru also are expected to begin late in 2010

or early in 2011. Longer term, we anticipate placing five additional

Perfexion systems over the next two years, and we are optimistic about a

positive outcome of additional contract negotiations in South America, Europe

and the United States." Dr. Bates noted that two AMS sites

experienced treatment increases averaging approximately 50% following Perfexion

continued, "Proton therapy is the next great growth opportunity in radiation

oncology, and we have positioned AMS to be a major beneficiary. We

currently are developing a proton therapy center in Dayton, Ohio, with Kettering

Medical Center, as well as treatment centers in San Francisco, Boston, Orlando

and Long Beach, California, and we are negotiating additional

projects. We expect to move forward quickly once FDA clearance has

been received for the proton treatment devices to be installed in these

centers. We have partnered with Siebert Brandford Shank & Co.

LLC, one of the nation's leading underwriters of public debt, to act as

placement agent in connection with the debt financing of these

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) 580-9478 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

Shared Hospital Services (www.ashs.com)

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 PBRT

system, which has not yet been approved by the FDA.

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, 2009, the Quarterly Report on Form 10-Q for the quarter ended

March 31, 2010, and the definitive Proxy Statement for the Annual Meeting of

Shareholders held on June 2, 2010.

Bates, M.D., Chairman and Chief Executive Officer

788-5300 / e.bates@ashs.com

826-5051 / info@berkmanassociates.com