San Francisco, CA, September 21, 2007 – Reflecting its strategy to focus on growth opportunities in the emerging market for proton beam radiation therapy (PBRT), AMERICAN SHARED HOSPITAL SERVICES (AMEX,PCX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that it will suspend its cash dividend.
"While our cash flow is solid and our cash position remains substantial, this step will increase the financial resources we can put to work to take full advantage of the many attractive investment opportunities in PBRT that have become available to us. We believe this strategy is the best way to deliver growth and value to our shareholders for the long term," said Ernest A. Bates, M.D., Chairman and CEO of American Shared Hospital Services.
"Widely regarded as the optimal radiation treatment for a wide variety of cancers, proton beam radiation therapy is the most significant advance in radiation oncology in many years. With the new generation of cost-effective PBRT systems now on the clinical horizon, AMS is taking the lead in making this advanced therapy available to cancer patients. We already have announced contracts to place PBRT devices at Tufts-NEMC and M. D. Anderson Cancer Center Orlando, subject to the receipt of FDA clearance, and we currently are negotiating contracts to place additional PBRT systems in medical centers throughout the country. We also recently increased our equity interest in privately owned Still River Systems, Inc., Littleton, Massachusetts, developer of the Clinatron 250™ PBRT device," Dr. Bates said.
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 services, 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 equity investment in Still River Systems, AMS also plans to complement these services with the Clinatron 250™ 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 business, the risks of developing its IMRT and The Operating Room for the 21st Century programs, 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 and 10-K/A for the year ended December 31, 2006, Form 10-Q for the three months ended March 31, 2007, Form 10-Q for the three months ended June 30, 2007, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 14, 2007. |
