ATC Healthcare Receives Noncompliance Warning Letter from the AMEX

  
    
  
  
    
      ATC Healthcare, Inc. (AMEX:AHN), 
      a leader in medical staffing, today reported that it has received a 
      notice from the staff of The American Stock Exchange (“AMEX”), 
      indicating that it had failed to fully comply with its listing 
      standards. This resulted from the Company’s 
      issuance, on January 16, 2007, of 2,000,000 shares of its Class A Common 
      Stock to an accredited investor without first obtaining the AMEX’s 
      approval for that issuance.
    
    
      To remedy its omission, the Company is filing an application today to 
      list on the AMEX the shares of Class A Common Stock and related warrants 
      issued on January 16, 2007.
    
    
      As a result of the noncompliance warning letter, the Company will be 
      included in a list of issuers, which is posted daily on the AMEX 
      website, that are not in compliance with the listing standards. In 
      addition, “.BC” 
      (below compliance) will be appended to the Company’s 
      symbol “AHN” on the 
      Consolidated Tape Association’s Consolidated 
      Tape System and Consolidated Quote Systems Low Speed and High Speed 
      tapes whenever the Company’s trading symbol 
      is transmitted with a quotation or trade to identify the Company as 
      noncompliant with the continued listing standards. The indicator will 
      not change the Company’s trading symbol 
      itself. The website posting and indicator will remain in effect until 
      the Company has regained compliance with all applicable listing 
      standards.
    
    
      Forward Looking Statements
    
    
      Certain statements contained in this release that are not statements of 
      historical facts are “forward-looking 
      statements” within the meaning of the Private 
      Securities Litigation Reform Act of 1995. The words — 
      “believe,” “expect,” 
      “anticipate,” “intend,” 
      “will,” and 
      similar expressions are examples of words that identify forward-looking 
      statements. Forward-looking statements include, without limitation, 
      statements regarding our future financial position, timing of future 
      revenue, business strategy and cost savings. These forward-looking 
      statements are based on our current beliefs, as well as assumptions we 
      have made based upon information currently available to us. These 
      forward-looking statements may be affected by the risks and 
      uncertainties in our business and are qualified in their entirety by the 
      cautionary statements and risk factor disclosure contained in our 
      filings with the Securities and Exchange Commission, including our 
      annual report on Form 10-K for the year ended February 28, 2006. We do 
      not assume, and expressly disclaim, any obligation to update these 
      forward-looking statements.
    
    
      About ATC Healthcare, Inc.
    
    
      ATC is a national leader in medical staffing personnel to hospitals, 
      nursing homes, clinics and other healthcare facilities with 56 locations 
      in 35 states. ATC provides supplemental staffing, outsourcing and human 
      resource 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 website at www.atchealthcare.com.