American Medical Alert first quarter net income increases 18% to $1,046,378

American Medical Alert Corp. (NASDAQ: AMAC) a provider of healthcare communication services and advanced telehealth monitoring technologies, today announced operating results for the quarter ended March 31, 2011, the highlights of which are as follows:

“Net Income before equity in net loss from investment in a limited liability company”

• Company achieves record quarterly earnings of $1,046,378 or $0.11 per diluted share, excluding the impact of its equity in net loss from investment in Lifecomm, for the quarter ended March 31, 2011.
• Company continues revenue momentum within the TBCS division and records second consecutive quarter of double digit growth as compared to the same quarters in the prior year, primarily as a result of business generated from new awards in the pharmaceutical channel and expanded business within its non-traditional offerings to hospital organizations.
• Company's investment in the next generation of mobile PERS continues to move forward and is on target for a January 2012 rollout.
• Company has built up cash on hand in excess of $6,400,000 and had working capital of over $11,700,000 at March 31, 2011.

Revenues for the quarter ended March 31, 2011, consisting primarily of monthly recurring revenues (MRR) increased 7% to $10,631,733 as compared to $9,911,247 for the same period in 2010. Net income for the quarter ended March 31, 2011 increased 18% to $1,046,378 or $0.11 per diluted share compared to $887,372 or $0.09 per diluted share for the same period in 2010. Net income for the quarter ended March 31, 2011 excludes $336,799 of the Company's share of equity in net loss from investment in limited liability company net of income taxes, incurred with respect to the Company's joint venture with Qualcomm and Hughes Telematics, Inc. (known as the "Lifecomm Joint Venture"). This equity loss 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 equity loss, which is expected to continue over the next several quarters, is not related to the Company's current business operations. As it relates to this equity loss, the Company will realize a significant tax benefit and have less cash outlay relating to income taxes. The Company's net income for the quarter ended March 31, 2011 including the effect of this charge was $709,579, or $.07 per diluted share.

Earnings before interest, taxes and depreciation and amortization for the three months ended March 31, 2011, excluding $559,882 of the Company's share of equity loss incurred with respect to the Lifecomm Joint Venture ("EBITDA"), was $2,532,074 as compared to $2,429,414 for the same period in 2010. EBITDA for the trailing twelve months ended March 31, 2011, which excludes $1,740,008 of the Company's share of equity loss incurred with respect to the Lifecomm Joint Venture was $9,069,504. EBITDA for the trailing twelve months ended March 31, 2010 was $9,037,304.

The Company continues to demonstrate increasing financial strength within its balance sheet reflecting improved liquidity, working capital and debt to equity ratio as follows:

• The Company's cash on hand at March 31, 2011 was $6,444,200 as compared to $4,090,528 at December 31, 2010.
• The Company's working capital increased to $11,783,665 at March 31, 2011, as compared to $10,043,976 at December 31, 2010, representing a 17% increase.
• The Company continues to pay down its debt in 2011 and had a debt to equity ratio of .09 to 1 at March 31, 2011.

Jack Rhian, AMAC's Chief Executive Officer and President, explained, "Our Q1 results affirm that AMAC is on track to deliver double digit revenue growth while continuing to drive respectable earnings and free cash flow in 2011. We continue to refine and narrow our focus to allow our sales and marketing teams to concentrate their efforts to drive top line from our core offerings. We intend to meet our guidance primarily through the continued distribution and monitoring of our PERS devices and through our communication services offerings to the pharmaceutical and hospital industries. With these efforts, we expect revenue growth to accelerate in the second half of the year in each of these business lines.

We believe the result of these efforts will provide for continued growth as we advance into 2012 through the anticipated launch of our next generation cellular Remote Patient Monitoring ("RPM") suite designed to improve patient access and usage of PERS, med management and telehealth. In addition to the Lifecomm offering, our planned investments in cellular communication protocols as an adjunct to landline based telephone connectivity will allow us to enjoy a first mover advantage in the PERS space and will also provide us with the opportunity to broaden our RPM offerings as we migrate to a more powerful, cellular gateway. Of equal importance are the growth opportunities we anticipate from new channel relationships being established with well recognized, big brand companies and national healthcare providers.

AMAC's ability to provide high touch, cost effective service from our national call center infrastructure has been a key factor in the significant uptick of awards we have recently secured in both the pharmaceutical and hospital solutions channels. It is also our belief that as we transition to a more clinically managed operation; we will see the size and pace of new awards increase in both the technology and service side of our business.

As mentioned during our last shareholder conference call, we also plan to accelerate the pace of strategic acquisitions of small PERS companies as well as other call center businesses as a means of growing our subscriber and customer base and adding profitable business to our recurring revenue base.

While we are reticent to disclose many details of the specific awards we receive because it places us at a competitive disadvantage to do so, we believe that we will be able to demonstrate the success of our strategy through the results of operation. We look forward to discussing our business further with shareholders during this morning's shareholder conference call."