American Shared Hospital Services Says Federal Trade Commission Review is Ended

Business Wire, Nov 3, 1998

SAN FRANCISCO--(BW HealthWire)--Nov. 3, 1998--American Shared Hospital Services (AMEX,PCX: "AMS" for common stock) Tuesday said that the previously-reported Federal Trade Commission (FTC) review of American Shared's sale of its medical diagnostic imaging business to Alliance Imaging, Inc. has been concluded. No change in the terms of the transaction resulted from the review.

The sale was announced on March 12, 1998. The purchase price includes approximately $13.6 million in cash, and the buyer's assumption of liabilities associated with American Shared's diagnostic imaging business, including approximately $23 million of debt as of June 30, 1998.

Closing of the sale is subject to the approving vote of a majority of the shareholders of American Shared, and other customary closing conditions. American Shared has scheduled a Special Meeting of Shareholders to be held on November 13, 1998, to consider approval of the sale. Proxy material for the Meeting was sent in early October, to Shareholders of Record on September 25, 1998. The sale is expected to close promptly after the November 13 Shareholder Meeting.

Ernest A. Bates, M.D., Chairman and CEO of American Shared said, "Today's news is a milestone in American Shared's history. The Closing of this transaction on November 13 will mark the beginning of a new era for American Shared. We will have strengthened financial resources to fund our growing Gamma Knife, radiation therapy, Operating Room for the 21st Century(sm) and related businesses."

American Shared Hospital Services is a diversified medical services company, with interests in mobile and shared diagnostic imaging, insurance services and (through its 81% interest in GK Financing, LLC) radiosurgery services. Headquarters are in San Francisco.