ATC Announces Plan to Add Twenty Investor-Backed Offices

ATC Healthcare, Inc. (AMEX:AHN), a national leader in
medical staffing, announced today that it plans to open twenty new
licensed offices in the next 24 months with an investor group that
will provide $2.5 million of financial backing for qualified managers.
Senior management at ATC will participate with the outside investors
in the funding of these new locations. ATC is actively looking for
staffing entrepreneurs who have the experience and drive to rapidly
grow their marketplaces and earn the right to own equity in the
licensed operation. The first location will be Oak Park, Illinois,
which is ideally suited to serve the large and expanding metropolitan
Chicago medical community.
   "We are very excited to have experienced and savvy investors
committed to this extensive and leading edge business development
program at ATC," remarked David Savitsky, CEO. "While the majority of
the funding will come from the outside investment group, senior
management of ATC will also participate in each license. This shows
that a high level of confidence in the program is shared within and
without ATC. We can now look for the highest caliber entrepreneurs in
the industry, those who want the opportunity to earn equity shares
from their success in building substantial medical staffing businesses
in their local markets."

   About ATC Healthcare, Inc.

   ATC is a national leader in medical staffing personnel to
hospitals, nursing homes, clinics, and other health care facilities
with 52 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.