ATC Announces New Location in Pasadena, California

ATC Healthcare, Inc., (AMEX: AHN) a leader in medical
staffing, announced today that it was opening a new office in
Pasadena, California. The new, Company-owned office will be part of
its Doctors' Corner operation, which provides permanent and temporary
medical administrative services to clients in southern California.
Doctors' Corner currently operates in three locations, Mission Hills,
West Los Angeles and Seal Beach.

   "Opening a new office is a great way to start our fiscal year,
which began yesterday. This new location will broaden the footprint of
Doctors' Corner into the San Gabriel Valley and continues to build our
network of offices in California. Together with the recently announced
opening of a licensed office in Huntington Beach, I am pleased to say
that we now have ten ATC operated offices in the state," said David
Savitsky, Chief Executive Officer.

   About ATC Healthcare, Inc.

   ATC is a national leader in medical staffing personnel to
hospitals, nursing homes, clinics, and other health care facilities
with 54 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.