AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today shared a recent announcement regarding progress in the development of a proton therapy center at Todd Cancer Institute at Long Beach Memorial Medical Center. As previously announced, AMS and a leading radiation oncology group have agreed to provide a proton beam radiation device manufactured by Still River Systems for the Long Beach facility. The Still River device has not yet been cleared by the FDA.

Todd Cancer Institute at Long Beach Memorial Medical Center and Miller Children's Hospital Granted Approval for Proton Therapy Project

Proton Therapy Center Will Provide Southern California Cancer Patients Greater Access to Advanced Treatment Options

LONG BEACH, Calif. -- September 29, 2009 -- The Todd Cancer Institute (TCI) at Long Beach Memorial Medical Center (LBMMC) and Miller Children's Hospital (MCH) today announced it has been granted approval to proceed with the architecture and engineering for its proton therapy center, becoming one of only 13 centers in the country currently planning for a compact unit. The approval comes as a result of approximately one year of planning, and having a proton therapy center in Long Beach will provide Southern California patients with greater access to this new state-of-the-art technology.

Funding for the $25 million project and the equipment, manufactured by the Still Rivers Company, comes from capital and philanthropic hospital funds from both the hospital's doctors as well as American Shared Hospital Services, which provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. The installation of the proton unit demonstrates TCI's ongoing commitment to bringing advanced medical treatments to cancer patients at both the local and national level.

"At the Todd Cancer Institute, we're committed to providing advanced state-of-the-art treatments that meet each patient's individual and unique needs," said Diana Hendel, CEO at LBMMC/MCH. "Our investment in the proton therapy center will offer the residents of Southern California, as well as patients throughout the country, with a promising new treatment option to treat difficult to reach cancers and improve health outcomes."

Proton therapy, used in both adults and children, is an advanced radiation treatment that works by aiming energized ion particles (protons) right at the targeted tumor. It is used to treat many forms of cancer; specifically in areas in the central nervous system, chest, head and neck, eyes and prostate. Recent studies have shown that proton therapy has a higher success rate and fewer complications than traditional radiation therapy when the cancer is located in difficult to reach areas, or when the damage to normal tissue creates a high degree of discomfort during treatment.

Construction on the proton therapy center will begin 2010, and the hospital expects to treat its first patient using the technology in 2012.

About Long Beach Memorial Medical Center:

Long Beach Memorial Medical Center is one of the nation's top-rated medical centers and with Miller Children's Hospital, is the second largest not-for-profit, community-based hospital west of the Mississippi. The 54-acre campus houses 716 beds, employs more than 5,200 people and has more than 800 volunteers.

About Todd Cancer Institute:

The Todd Cancer Institute (TCI) is dedicated to the early diagnosis, research, treatment and education of patients with cancer or serious blood disorders. Through interdisciplinary treatment planning conferences, Todd Cancer Institute specialists review new or difficult cases and develop treatment plans suited to the specific needs of each patient. The Todd Cancer Institute (TCI) continues to be at the forefront of cancer treatment with the da Vinci "S" ^TM robotic surgical system, digital mammography and its state-of-the-art technology of TomoTherapy, IMRT, Brachytherapy and Hyperthermia used at the institute's Leavey Radiation Oncology Center. The gynecologic oncology program at TCI ranks in the top four in the nation and TCI radiologists and pathologists are nationally renowned for their expertise in accurate cancer diagnosis.

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 Century® concept. Through its preferred stock investment in Still River Systems, AMS also plans to complement these services with the Monarch 250^TM 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, 2008, the Quarterly Report on Form 10-Q for the quarters ended March 31, 2009, and June 30, 2009, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on May 28, 2009.