ATC Expands Operations In Chicago Area

ATC Healthcare, Inc., (AMEX:AHN) a leader in medical
staffing, is pleased to announce that it has opened a new Licensed
office in the Chicago area. The office will be located in Oak Park and
will provide per diem staffing to hospitals, nursing homes and medical
facilities in the area.
   "We are pleased to be opening a second office in this greater
Chicago area. This new licensed location, together with our licensed
operation in Crestwood, will provide a broader footprint to cover the
market more completely," said David Savitsky, Chief Executive Officer.
   The ATC Licensee Program is an important part of the company's
overall strategic plan for expanding its reach into new markets and
rebuilding its sales. New licensees are carefully selected for their
experience and either own or have operated a medical staffing business
in the geographical location. They can bring to bear their local
experience to give ATC a quick start in becoming a market presence.
Since January of this year, ATC has opened 5 new Licensed offices.

   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.