ATC Announces New Location in Seal Beach, California

ATC Healthcare, Inc., (AMEX:AHN-News) a leader in
medical staffing, announced today that it was opening a new office in
Seal Beach, 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 two locations, Mission Hills and
West Los Angeles.
   "I'm pleased that ATC is continuing its expansion in the
California market. We recently opened two new licensed medical
staffing offices in Modesto and Culver City. This new office will
expand the geographic reach of Doctors' Corner for recruitment
opportunities, particularly in the permanent placement part of the
business. We hope to continue our California growth with additional
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 51 locations and conducts business 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 July 29, 2005.