ATC Announces New Location in Orange County, California

ATC Healthcare, Inc., (AMEX: AHN) a leader in
medical staffing, announced today that it was opening a new office in
Orange County, California. The new office will be part of its
Investor-backed Licensee Program in which the Licensee will pay a
Licensing fee of $29,500 and be responsible for all local operating
costs. The office will provide both per diem and contracted nursing
services to hospitals, acute care and long term care facilities
throughout Orange County. It will be the ninth location for ATC in
California and is located in Huntington Beach.
   "I'm pleased that ATC will be servicing such a dynamic healthcare
market as Orange County," remarked David Savitsky, Chief Executive
Officer. " State mandated nurse staffing ratios have created urgent
needs for medical for staff which can be supplied by ATC. This new
office is part of our Investor-backed Licensee program, in which
outside investors fund the licensed operation and create an
opportunity for outstanding individuals to rapidly grow their
marketplace and earn the right to own equity in the licensed
operation. We plan to open twenty such locations in the next 24
months"

   About ATC Healthcare, Inc.

   ATC is a national leader in medical staffing personnel to
hospitals, nursing homes, clinics, and other health care facilities
with 53 locations in 31 states. ATC provides supplemental staffing,
outsourcing and human resources solutions to hospitals, nursing homes,
medical and research facilities and industry. Drawing from a pool of
over 15,000 healthcare professionals spanning more than 50
specialties, the Company supplies both clinical and non-clinical
personnel for short-term, long-term, and "traveling" contract
assignments. To learn more about the company's services, visit their
web site at www.atchealthcare.com.

   This press release contains forward-looking statements. Actual
results could differ materially from those projected in the
forward-looking statements. Additional information concerning factors
that could cause actual results to differ materially from those in the
forward-looking statements is contained in ATC Healthcare, Inc. Annual
Report on Form 10-K/A for the year ended February 28, 2005 as filed
with the Securities and Exchange Commission on September 26, 2005.