ATC Awarded New Jersey Contract Valued at $4 Million Dollars

ATC Healthcare, Inc., (AMEX:AHN - News) a leader in
medical staffing, announced today that it is one of the awardees of
the contract issued by the state of New Jersey, Division of Purchase
and Property. The contract, valued at four million dollars, is to
provide medical staffing to various state agencies including the
Department of Veterans Affairs, Department of Human Services and
Department of Corrections. The agencies under the contract can place
Registered Nurses, Licensed Practical Nurses, Certified Nursing
Assistants, and Emergency Medical Technician services. Medical
facilities affected by this contract include state psychiatric, long
term care, and developmental disability institutions.
   "This contract will increase the sales in our Cherry Hill, New
Jersey office," said David Savitsky, Chief Executive Officer. "Based
on prior experience in these facilities, we anticipate additional
sales of approximately $1.3 million per year. This contract will run
for three years and, as such, will add to the long term, stable base
of business we are looking to achieve with our government contracting
program."
   ATC is starting to see significant gains in its government
healthcare division, building on the recently announced 12 million
dollar staffing contracts in Jackson, Michigan and Devans,
Massachusetts.

   About ATC Healthcare, Inc.

   ATC is a national leader in medical staffing personnel to
hospitals, nursing homes, clinics, and other health care facilities
with 50 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 for the year ended February 28, 2005 as filed with
the Securities and Exchange Commission on June 13, 2005.