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Ernest A. Bates, M.D., Chairman and CEO

American Shared Hospital Services
Two Embarcadero Center, Suite 410
San Francisco, CA 94111

American Shared Hospital Services Announces $1.2 Million Private Financing

San Francisco, CA, October 24, 2014 -- AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today the closing of its issuance of $1.0 million aggregate principal amount of unsecured notes to Board of Directors members Raymond C. Stachowiak, John F. Ruffle, Mert Ozyurek, and David A. Larson, M.D. The notes mature in three years, and carry interest at 15% annually. In connection with its issuance of the notes, AMS issued to its note holders three-year warrants to purchase an aggregate of 200,000 shares at an exercise price of $2.20 per share. This private offering is pursuant to a note and warrant purchase agreement the parties entered into on October 22, 2014.

Additionally, AMS sold 100,000 newly issued common shares at a purchase price of $2.20 per share to Raymond C. Stachowiak. This private offering is pursuant to a stock purchase agreement AMS and Mr. Stachowiak entered into on October 22, 2014.

Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "This $1.2 million raise is in addition to the approximately $1.6 million equity investment made by some of our directors in June. These investments are tangible statements of support for our growth strategy. We have used this recent private offering together with cash on hand, to make progress payments of $2,000,000 to Mevion Medical Systems, Inc. for our MEVION S250 proton therapy system to be installed at Orlando Health. The Company has also entered into a commitment letter, subject to final documentation and other conditions, with a major international financial institution to provide lease financing for the completion and installation of our proton therapy system at Orlando Health, which is expected to start treating patients in first quarter 2016."

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 developing the proton therapy project, 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 quarters ended March 31, 2014 and June 30, 2014, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 10, 2014.

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