Contact:





Randi
Baldwin


Senior
Vice President,  Marketing


American
Medical Alert Corp.


(516)
536-5850 ext: 3109


randi.baldwin@amac.com





AMERICAN
MEDICAL ALERT CORP. REPORTS


SECOND
QUARTER 2010 RESULTS





OCEANSIDE, New York. –August 11, 2010–American Medical Alert Corp. (NASDAQ: AMAC) a provider of healthcare
communication services and advanced telehealth monitoring technologies, today
announced operating results for the quarter and six months ended June 30, 2010,
the highlights of which are as follows:





·
            Company-wide net income
      increased approximately 22% for the six months ended June 30, 2010 and 30%
      for the three months ended June 30, 2010 as compared to same periods last
      year (before effect of minority investment charge)
  .





·
            HSMS division for the second
      consecutive quarter achieved a gross profit level of
      60%.





·
            The Company declares second
      special dividend of $0.10 per
share.





·
            Company sets date to commence
      aggressive advertising campaign to market its PERS and MedSmart product
      direct to consumers.




Revenues for the quarter ended June 30,
2010, consisting primarily of monthly recurring revenues (MRR), increased 2% to
$9,712,145 as compared to $9,518,206 for the same period in 2009.  Net
income for the quarter ended June 30, 2010 increased 30% to $791,418 or $.08 per
diluted share as compared to $608,385 or $.06 per diluted share for the same
period in 2009.  Net income for the quarter ended June 30, 2010
excludes $68,515 of net expense, net of income taxes, incurred with respect to
the Company’s joint venture with Qualcomm and Hughes Telematics, Inc. (known as
“Lifecomm”).  This net expense represents the Company’s share of
R&D and other selling, general and administrative expenses
incurred  for the development of the next generation mobile
PERS.  This expense, which is expected to increase over the next
several quarters, is not related to the Company’s business
operations.The Company’s net income
for the quarter ended June 30, 2010 after taking into effect of this charge was
$722,903, or $.07 per diluted share.





Revenues
for the six months ended June 30, 2010 increased 1% to $19,623,392, as compared
to $19,448,295 for the same period in 2009.  Net income for the six
months ended June 30, 2010 increased 22% to $1,678,790 or $0.17 per diluted
share as compared to net income of $1,381,635 or $0.14 per diluted share for the
previous year. Net income for the six months ended June 30, 2010 excludes
$68,515 of net expense, net of income taxes, incurred with respect to the
Company’s joint venture with Qualcomm and Hughes Telematics, Inc. as discussed
above.  Net income for the six months ended June 30, 2010 after taking
into effect of this charge was $1,610,275, or $0.16 per diluted share, which
would represent a 17% increase over the prior year. Net Income for the trailing
twelve months increased 31% to $3,186,668 as compared to $2,432,480 for the same
period in 2009. This 31% growth rate excludes a one time non operating charge of
$521,627 for loss on abandonment incurred in 2008 (which affects the results for
the twelve months ended June 30, 2009), and thereby more accurately reflects the
growth from an operational perspective. The trailing twelve month net income
also excludes $68,515 of net expense, net of income taxes, incurred with respect
to the Company’s joint venture with Qualcomm and Hughes Telematics, Inc. as
discussed above.







Earnings
before interest, taxes and depreciation and amortization (“EBITDA”) for the six
months ended June 30, 2010 increased 4% to $4,597,773 as compared to $4,428,102
for the same period in 2009.  EBITDA for the trailing twelve months
ended June 30, 2010 and 2009 was $9,163,465 and $7,683,194,
respectively.




The
Company continues to demonstrate financial strength within its balance sheet
even after taking into effect its $4,000,000 investment in a joint venture with
Qualcomm, Inc. and Hughes Telematics, Inc. to develop a next generation mobile
PERS system.  The Company had cash in excess of $4,000,000 at June 30,
2010, had working capital of $9,088,062, representing a ratio of 3.78 to 1, and
a debt to equity ratio of .11 to 1.  As a result of its continued
trend of generating positive cash flow from operations, the Company recently
announced its second special dividend of $0.10 per share, following its first
dividend in the same amount paid in January of this year. This dividend will be
paid on or about October 1, 2010, to shareholders of record on September 13,
2010. Notwithstanding the issuance of these special cash dividends, the
company’s ongoing cash flow generation will also allow us to take advantage of
potential strategic acquisitions and fund our advertising campaigns which are
central to our growth strategy.  In addition, as discussed in today’s
guidance report, due to the tax benefit associated with the investment made in
our Lifecomm joint venture, we expect to save approximately $1.6 million in
taxes over the next eighteen months which will help fuel the cash flow
requirements in support of our aggressive business development
expansion.




Jack
Rhian, AMAC’s Chief Executive Officer and President, explained, “The
guidance provided today, is consistent with statements I made earlier this year
that the pace of new revenue generation would increase beginning in the second
half of the year. We believe these increases in revenues will continue over the
next eighteen months and have a compounding affect due to the nature of our
recurring revenue model.  We are particularly pleased with the
business development activities observed within our TBCS division which had been
trailing behind that of our HSMS division.





During
the past several months we have recruited a variety of seasoned sales and
marketing personnel and have reorganized our sales personnel into four distinct
teams with primary and secondary channel objectives within both divisions. With
respect to our HSMS division, we are reactivating our Walgreens direct to
consumer TV/Web advertising campaign beginning in September and, with our
enhanced sales and marketing team in place, pursuing large volume PERS
business-to-business channel opportunities. I am also pleased to report that
development work on our cellular based Mobile PERS solution, under our Lifecomm
joint venture arrangement with Qualcomm and Hughes Telmatics, is progressing
well. With regard to MedSmart, our medication management system, we remain
bullish that this product can become a material contributor to our HSMS division
over time. In addition to the previously reported MedSmart pilot study programs
we are in talks with several other national provider organizations that have
expressed interest in piloting MedSmart. As we plan to launch our direct to
consumer TV/Web advertising program pilots in September, we believe the
collateral benefit of this advertising campaign will provide greater product
awareness for our B2B sales effort. Within our TBCS group, our hospital
solutions and PhoneScreen Pharmaceutical support programs continue to gain
traction while the awards announced earlier this year have begun full scale
implementation and related revenue
generation.








We have a seasoned management team with
the depth of knowledge capable of creating and executing on the opportunities
arising from both our TBCS and HSMS divisions.  Our product and
service offerings are advanced and complementary while remaining cost sensitive.
AMAC is a recognized solutions provider and we are capable of partnering and
providing service to the largest and most respected healthcare and technology
companies. As we execute on our plan, I am confident we can meet or exceed our
guidance issued today.”





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 ordial
      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.




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 “earnings before interest, taxes and
depreciation and amortization (“EBITDA”)” and “Net Income before Equity in net
loss from investment in a limited liability company and Loss on
Abandonment”.  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 measures 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 EBITDA is a useful measure of the Company's financial performance as it is
an indicator of the Company's ability to generate cash flow to make
acquisitions, declare and pay dividends, reinvest in new telehealth
products and liquidate liabilities. Management also uses EBITDA for planning
purposes to determine appropriate levels of operating and capital investments.
Management also believes reporting Net Income before Equity in net loss from
investment in a limited liability company and Loss on Abandonment more
accurately reflects the performance of the Company’s core operations and
excludes a non-operational item which may skew the analysis of management or
outside investors in evaluating the Company.








EBITDA
and Net Income before Equity in net loss from investment in a limited liability
company and Loss on Abandonment are non-GAAP financial measures and although
management and some members of the investment community utilize it to measure
financial performance, EBITDA and Net Income before Equity in net loss from
investment in a limited liability company and Loss on Abandonment should
not be viewed as a substitute for financial data prepared in accordance with
GAAP or as a measure of profitability.  Additionally, the non-GAAP
financial measure as presented by AMAC may not be comparable to similarly titled
measures reported by other companies.





Forward
Looking Statements





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.




Statements
of income for the three and six months ended June 30, 2010 and 2009 and balance
sheets as of June 30, 2010 and December 31, 2009 are attached.





AMAC
SELECTED FINANCIAL DATA





Three
      Months Ended
                      
                      
                      Six
      Months Ended6/30/2010
                      
                      
                      6/30/2009
                      
                      
                      6/30/2010
                      
                      
                      6/30/2009Revenues
                      
                      $
                      9,712,145
                      
                      
                      $
                      9,518,206
                      
                      
                      $
                      19,623,392
                      
                      
                      $
                      19,448,295Cost
      of Goods Sold
                      
                      
                      4,522,891
                      
                      
                      
                      4,547,539
                      
                      
                      
                      9,046,330
                      
                      
                      
                      9,184,507Selling,
      General & Administrative Costs
                      
                      
                      3,857,251
                      
                      
                      
                      3,940,743
                      
                      
                      
                      7,765,084
                      
                      
                      
                      7,993,190Interest
      Expense
                      
                      
                      13,836
                      
                      
                      
                      20,620
                      
                      
                      
                      26,267
                      
                      
                      
                      44,302Equity
      in net loss from investment in a  limited liability
      company
                      
                      
                      116,127
                      
                      
                      
                      -
                      
                      
                      
                      116,127
                      
                      
                      
                      -Other
      Expenses (Income)
                      
                      
                      (29,863
                      )
                      
                      
                      (22,081
                      )
                      
                      
                      (59,691
                      )
                      
                      
                      (116,339
                      )Income
      before Provision for Income Taxes
                      
                      
                      1,231,903
                      
                      
                      
                      1,031,385
                      
                      
                      
                      2,729,275
                      
                      
                      
                      2,342,635Net
      Income
                      
                      $
                      722,903
                      
                      
                      $
                      608,385
                      
                      
                      $
                      1,610,275
                      
                      
                      $
                      1,381,635Net
      Income per ShareBasic
                      
                      $
                      0.08
                      
                      
                      $
                      0.06
                      
                      
                      $
                      0.17
                      
                      
                      $
                      0.15Diluted
                      
                      $
                      0.07
                      
                      
                      $
                      0.06
                      
                      
                      $
                      0.16
                      
                      
                      $
                      0.14Basic
      Weighted AverageShares Outstanding
                      
                      
                      9,549,355
                      
                      
                      
                      9,469,908
                      
                      
                      
                      9,537,894
                      
                      
                      
                      9,461,888Diluted
      Weighted AverageShares Outstanding
                      
                      
                      9,828,473
                      
                      
                      
                      9,720,829
                      
                      
                      
                      9,
      835,180
                      
                      
                      
                      9,651,024









CONDENSED
BALANCE SHEET





June 30,
                    
                    
                    December 31,2010
                    
                    
                    2009(Unaudited)ASSETSCurrent
      Assets
                    
                    $
                    12,361,003
                    
                    
                    $
                    13,779,968Fixed
      Assets – Net
                    
                    
                    7,769,189
                    
                    
                    
                    8,756,827Other
      Assets
                    
                    
                    17,171,760
                    
                    
                    
                    13,291,829Total
      Assets
                    
                    $
                    37,301,952
                    
                    
                    $
                    35,828,624Current
      Liabilities
                    
                    $
                    3,272,941
                    
                    
                    $
                    4,833,638Deferred
      Income Tax
                    
                    
                    1,114,000
                    
                    
                    
                    1,235,000Long-term
      Debt
                    
                    
                    2,510,000
                    
                    
                    
                    1,195,000Other
      Liabilities
                    
                    
                    673,949
                    
                    
                    
                    648,603Total
      Liabilities
                    
                    $
                    7,570,890
                    
                    
                    $
                    7,912,241Stockholders’
      Equity
                    
                    
                    29,731,062
                    
                    
                    
                    27,916,383Total
      Liabilities and Stockholders’ Equity
                    
                    $
                    37,301,952
                    
                    
                    $
                    35,828,624





Net
Income before Equity in net loss from investment in a limited liability company
for the three and six months ended June 30, 2010 and 2009 reconciled to net
income.





Three Months Ended
                  
                  
                  Six Months Ended6/30/2010
                  
                  
                  6/30/2009
                  
                  
                  6/30/2010
                  
                  
                  6/30/2009Net
      Income
                  
                  
                  722,903
                  
                  
                  
                  608,385
                  
                  
                  
                  1,610,275
                  
                  
                  
                  1,381,635Add
      Backs:Equity
      in net loss from investment in a limited liability company
                  
                  
                  68,515
                  
                  
                  
                  -
                  
                  
                  
                  68,515
                  
                  
                  
                  -Net
      Income before Equity in net loss from  investment in a limited
      liability
                  
                  
                  791,418
                  
                  
                  
                  608,385
                  
                  
                  
                  1,678,790
                  
                  
                  
                  1,381,635








Net
Income before Loss on Abandonment and Equity in net loss
from  investment in a limited liability company for the trailing
twelve month period ended June 30, 2010 and 2009 reconciled to net
income.





6/30/2010
                    
                    
                    6/30/2009Net
      Income
                    
                    
                    3,118,153
                    
                    
                    
                    1,910,853Add
      Backs:Loss
      on Abandonment
                    
                    
                    -
                    
                    
                    
                    521,627Equity
      in net loss from investment in a  limited liability
      company
                    
                    
                    68,515
                    
                    
                    
                    -Net
      Income before Equity in net loss from  investment in a limited
      liability company and Loss on Abandonment
                    
                    
                    3,186,668
                    
                    
                    
                    2,432,480





Earnings
before interest, taxes and depreciation and amortization for the six months and
trailing twelve months ended June 30, 2010 and 2009.





Add:
                                
                                
                                
                                
                                
                                Less:6/30/10
                                
                                
                                12/31/2009
                                
                                
                                Subtotal
                                
                                
                                6/30/2009
                                
                                
                                TotalNet
      Income
                                
                                
                                1,610,275
                                
                                
                                
                                2,889,513
                                
                                
                                
                                4,499,788
                                
                                
                                
                                1,381,635
                                
                                
                                
                                3,118,153Add
      Backs:Taxes
                                
                                
                                1,119,000
                                
                                
                                
                                1,925,000
                                
                                
                                
                                3,044,000
                                
                                
                                
                                961,000
                                
                                
                                
                                2,083,000Interest
                                
                                
                                26,267
                                
                                
                                
                                76,181
                                
                                
                                
                                102,448
                                
                                
                                
                                44,302
                                
                                
                                
                                58,146Depreciation
      & Amort.
                                
                                
                                1,842,231
                                
                                
                                
                                4,103,100
                                
                                
                                
                                5,945,331
                                
                                
                                
                                2,041,165
                                
                                
                                
                                3,904,166EBITDA
                                
                                
                                4,597,773
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                9,163,465Add:
                                
                                
                                
                                
                                
                                
                                Less:6/30/09
                                
                                
                                12/31/2008
                                
                                
                                Subtotal
                                
                                
                                6/30/2008
                                
                                
                                TotalNet
      Income
                                
                                
                                1,381,635
                                
                                
                                
                                1,439,601
                                
                                
                                
                                2,821,236
                                
                                
                                
                                910,383
                                
                                
                                
                                1,910,853Add
      Backs:Taxes
                                
                                
                                961,000
                                
                                
                                
                                1,007,000
                                
                                
                                
                                1,968,000
                                
                                
                                
                                633,000
                                
                                
                                
                                1,335,000Interest
                                
                                
                                44,302
                                
                                
                                
                                279,451
                                
                                
                                
                                323,753
                                
                                
                                
                                166,868
                                
                                
                                
                                156,885Depreciation
      & Amort.
                                
                                
                                2,041,165
                                
                                
                                
                                4,376,317
                                
                                
                                
                                6,417,482
                                
                                
                                
                                2,137,026
                                
                                
                                
                                4,280,456EBITDA
                                
                                
                                4,428,102
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                7,683,194




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