American Shared Hospital Services Announces $1.6 Million Private Placement

AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today the private sale of a total of 650,000 newly issued common shares at a purchase price of $2.43 per share, the closing price on June 10, 2014, to Board of Directors members Raymond C. Stachowiak, John Ruffle, and Stanley Trotman. The private offering is pursuant to a stock purchase agreement the parties entered into on June 11, 2014.

Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "This approximately $1.6 million investment is a powerful vote of confidence in AMS' strategic direction by three Board members of long standing. We plan to use the proceeds of this private equity placement for the acceleration of our proton therapy projects now under development."

About AMS

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 CenturySM concept. AMS owns a common stock investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.

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, Mevion Medical Systems, Inc. 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, 2013, the Form 10-Q for the quarter ended March 31, 2014, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 10, 2014.