American Medical Alert Corp. Issues Guidance for Fiscal 2009

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Thu Jul 30, 2009 8:20am EDT

Company Projects Significant Increased Earnings for 2009 with Forecast of a 40%
Growth in Net Earnings
OCEANSIDE, N.Y.--(Business Wire)--
American Medical Alert Corp. (NASDAQ: AMAC) announced that based on the positive
financial impact of the Company`s focus on operational efficiencies, including
the execution of certain consolidation efforts within its business segments, the
Company expects to achieve significant improvement in bottom line results. The
Company projects that gross revenues, consisting primarily of monthly recurring
revenue (MRR), will increase by approximately 6% to $40,750,000 while also
projecting approximately a 40% increase in net income to $2,750,000 for the year
ending December 31, 2009. This 40% growth rate excludes a one time non operating
charge of $521,627 incurred in 2008, and thereby more accurately reflects the
projected growth from an operations perspective. Without this exclusion, the
growth in projected net income would be approximately 91%. 

The 2009 projections compare to gross revenues of $38,586,820 in 2008, net
income of $1,439,601 and net income before loss on abandonment of $1,961,228. 

Jack Rhian, President and Chief Executive Officer, explained, "It is gratifying
to share the projected results of management`s multiyear earnings enhancement
plan which continues to provide improved bottom line earnings. Over the last
three years, inclusive of 2009 projections, earnings are expected to increase
118% with the largest incremental growth occurring this year. The Company
believes it will continue to deliver a greater proportion of revenue to the
bottom line as management continues to focus on revenue growth." 

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 nine communication centers under local trade names: HLINK OnCall, Long
Island City, NY and Clovis NM, North Shore TAS, Port Jefferson, NY, Live Message
America, Audubon, NJ, ACT Teleservice, Newington, CT and Springfield, MA, MD
OnCall, Cranston RI and Capitol Medical Bureau Rockville, MD, American
MediConnect and Phone Screen Chicago, IL 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 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 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 loss on abandonment is a more concise measure of the Company's
operating financial results as it excludes one-time non operating expenses. 

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. The projected results are in part dependent
on the accuracy of management`s estimation of projected revenues of its newly
introduced Med-Smart product. While management believes that its current
estimates are reasonable, revenue projections for newly introduced products are
inherently less reliable due to a lack of sales history. 

Earnings before Loss on abandonment:

                                          12/31/08   
                                                     
 Net Income                               1,439,601  
 Add Backs:                                          
 Loss on abandonment                      521,627    
                                                     
 Net Income Before Loss on Abandonment    1,961,228  


American Medical Alert Corp.
Randi Baldwin, 516-536-5850
Senior Vice President Marketing



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