ATC Expands Operations in California; Fourth New Office in State within Twelve Months

ATC Healthcare, Inc., (AMEX:AHN) a leader in
medical staffing, is pleased to announce that it has executed a
License Agreement with Global Nurses Online, Inc. of Culver City,
California. Global Nurses Online, Inc. specializes in the recruitment
of RNs and has operated in the market for the last five years.
   "We are very pleased to have Global Nurses Online in the ATC
network. This expansion marks our second office into the greater Los
Angeles area. With nurse staffing ratios now being regulated in
California, the market should see a significant upturn in business.
ATC's new offices in California, position us to service this increase
in demand", said David Savitsky, Chief Executive Officer.
   This is the fourth new licensee to the ATC network in 2005. The
ATC Licensee Program is a very 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. ATC plans to
open 12 new licensed locations this year.

   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 and conducts business in 33 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 29, 2004 as filed
with the Securities and Exchange Commission on November 4, 2004 and
the quarterly report on form 10-Q for the Quarter ended November 30,
2004 as filed with the Securities and Exchange Commission on January
14, 2005.