Contact:





Randi
Baldwin


Senior
Vice President Marketing


American
Medical Alert Corp.


(516)
536-5850 ext: 3109


randi.baldwin@amac.com




American Medical Alert Corp. Issues
Guidance for Fiscal
2010 and 2011




Oceanside
NY–August 11, 2010 American Medical Alert Corp. (NASDAQ: AMAC) announced its
guidance for 2010 and longer term outlook for 2011. The Company projects that
gross revenues, consisting primarily of monthly recurring revenue (MRR), will
increase by approximately 3% to $40,500,000 for 2010 as compared to
2009.  The Company is also projecting that gross revenues will
increase from 8% to 11% in 2011 as compared to projected 2010
results.  The Company believes starting with the third quarter of
2010, revenues, within both segments, will increase at a greater pace over the
next eighteen months.




As a
result of the Company’s plan to increase advertising expenditures by
approximately $450,000 to $600,000, net of taxes, as compared to 2009, as part
of a comprehensive plan to drive an accelerated pace of new revenue growth, the
Company is projecting net income ranging from $2,850,000 to $3,000,000, or $0.29
to $0.31 per diluted share based on the fully diluted shares as of June 30,
2010, for the year ending December 31, 2010. The net income projection excludes
the impact of the net loss allocated to the Company in relation to its minority
investment in Lifecomm, LLC, a joint venture with Qualcomm, Inc. and Hughes
Telematics, Inc, as discussed below (the “Lifecomm Joint Venture”).




The
Company is projecting net income ranging from $3,550,000 - $3,850,000, or $0.36
to $0.39 per diluted share based on the fully diluted shares as of June 30,
2010, for the year ending December 31, 2011. As part of this projection, the
Company has forecast to spend from $600,000 to $900,000, net of taxes, in
advertising dollars to continue its efforts to drive accelerated revenue growth.
This net income calculation also excludes the impact of the net loss allocated
to the Company on connection with the Lifecomm Joint Venture.




During
2010, as previously announced, the Company made an investment into the Lifecomm
Joint Venture, which was formed as a limited liability company, for the
development of the next generation mobile PERS. The Company anticipates it will
continue to be allocated net losses from the Lifecomm Joint Venture until the
product is completed and commercialized. In accordance with accounting rules and
regulations, the Company is required to record its portion of net income or net
loss associated with the Lifecomm Joint Venture.  The Company
estimates its share of the net loss after taxes for 2010 to range from $960,000
to $1,050,000.  The Company’s projected net income for 2010 after
taking into effect this charge would range from $1,800,000 to $2,040,000, or
$0.18 to $0.21 per diluted share based on the fully diluted shares as of June
30, 2010.  The 2011 projection also excludes the Company’s portion of
the net income (loss) associated with the Lifecomm Joint Venture, which the
Company estimates to range from $1,350,000 to $1,440,000.  The
projected net income for 2011 after taking into effect this charge would range
from $2,110,000 to $2,500,000, or $0.21 to $0.25 per diluted share based on the
fully diluted shares as of June 30, 2010.




As a
result of these projected charges, the Company would realize a tax benefit of
$640,000 to $700,000 for the year ended December 31, 2010 and $900,000 to
$960,000 for the year ended December 31, 2011. This cash savings from the tax
benefit will be utilized to further
support the cash requirements of our aggressive business development expansion
and to fund potential acquisitions.







Additionally,
once the next generation mobile PERS is completed and commercialized, it is
anticipated that the Lifecomm Joint Venture will begin to become profitable and
the Company’s net income will be enhanced by its portion of the joint venture
profits.




Commencing
in the second quarter of 2010, the Company will report net income before and
after the impact of the Lifecomm Joint Venture, to better illustrate the results
from operations of itscore business.




As
previously announced, the Company will host a webcast on Wednesday, August 11,
2010 to discuss its financial results for the quarter ended June 30, 2010,
guidance for fiscal 2010, longer term outlook for 2011, and other business
trends.  The Company invites investors and others to listen to the
conference call live over the Internet or by dialing in to (877) 407-9205 at
10:00 a.m. ET.





What:
              American
      Medical Alert Corp. Second Quarter 2010 ResultsWhen:
              Wednesday,
      August 11, 2010 at 10:00 a.m. ETWhere:
              http://www.investorcalendar.com/IC/CEPage.asp?ID=160924How:
              Log
      on to the web at the address above, and click on the audio link or dial in
      877-407-9205 to participate.




Following
the conference call, the webcast will be available on the VCall website at
http://www.investorcalendar.com/IC/CEPage.asp?ID=160924. The financial
information presented in the webcast will also be available at http://amac.com/press.cfm.




About
American Medical Alert Corp. (www.amac.com)





AMAC is a
healthcare communications company dedicated to the provision of support services
to the healthcare community. AMAC's product and service portfolio includes
Personal Emergency Response Systems (PERS) and emergency response monitoring,
electronic medication reminder devices, disease management monitoring appliances
and healthcare communication solutions services. AMAC operates eight US based
communication centers under local trade names: HLINK OnCall, North Shore TAS,
Live Message America, ACT Teleservice, MD OnCall, Capitol Medical Bureau,
American MediConnect and Phone Screen to support the delivery of high quality,
healthcare communications.





Use
of Non-GAAP Financial Information





In
addition to the results reported in accordance with accounting principles
generally accepted in the United States (“GAAP”) included in this press release,
the Company has provided information regarding certain non-GAAP financial
measure.  This measure is “Equity in net loss from investment in a
limited liability company”.  Such information is reconciled to its
closest GAAP measure in accordance with the Securities and Exchange Commission
rules and is included in the attached supplemental data.





Management
believes that the non-GAAP financial measure used in this press release is
useful to both management and investors in their analysis of the Company’s
financial position and results of operations.  Management believes
that earnings before Equity in net loss from investment in a limited liability
company is a more concise measure of the Company's operating financial results
as it excludes a non-operational item which may
skew the analysis of management or outside investors in evaluating the
Company..








This
press release contains forward-looking statements that involve a number of risks
and uncertainties. Forward-looking statements may be identified by the use of
forward-looking terminology such as "may," "will," "expect," "believe,"
"estimate," "anticipate," "continue," or similar terms, variations of those
terms or the negative of those terms. Important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements are set forth in the Company's filings with the Securities and
Exchange Commission (SEC), including the Company's Annual Report on Form 10-K,
the Company's Quarterly Reports on Forms 10-Q, and other filings and
releases.  These include uncertainties relating to government
regulation, technological changes and product liability risks.  In
addition, certain statements related to the future expectations and timing for
the development and commercialization of Lifecomm’s mobile PERS solution,
constitute forward-looking statements.  Important factors which might
cause a difference between actual and expected events include: (i) greater than
expected and/or increased costs or unexpected delays associated with the
development and commercialization of Lifecomm’s mobile PERS solution, (ii)
inability to successfully develop the technology to support Lifecomm’s mobile
PERS solution, (iii) uncertainty relating to consumer interest in and acceptance
of Lifecomm’s mobile PERS solution, (iv) risks associated with changes in the
competitive or regulatory environment in which Lifecomm operates; and (v) risks
associated with prosecuting or defending allegations or claims of infringement
of intellectual property rights.  The Company does not undertake any
obligation to update these forward-looking statements for events occurring after
the date of this press release.





This
press release also contain financial projections that are necessarily based upon
a variety of estimates and assumptions which may not be realized and are
inherently subject, in addition to the risks identified in the forward-looking
statement disclaimer, to business, economic, competitive, industry, regulatory,
market and financial uncertainties, many of which are beyond the Company’s
control.  There can be no assurance that the assumptions made in
preparing the projected financial impact will prove
accurate.  Accordingly, actual results may differ materially from the
projected financial impact.





Earnings
before Equity in net loss from investment in a limited liability
company:





Year Ended
                  
                  
                  Year EndedProjected Range
                    12/31/2010
                  
                  
                  Projected Range
                    12/31/2011Net
      Income
                  
                  $
                  1,800,000–
      2,040,000
                  
                  
                  $
                  2,110,000–
      2,500,000Add
      Backs:Loss
      allocated from investment in unconsolidated affiliate
                  
                  $
                  960,000
      – 1,050,000
                  
                  
                  $
                  1,350,000
      – 1,440,000Net
      Income Before Equity in net loss from investment in a limited liability
      company
                  
                  $
                  2,850,000 - $3,000,000
                  
                  
                  $
                  3,550,000 - 3,850,000




###