ATC to Expand Its Allied Business

  
    
  
  
    
      ATC Healthcare, Inc., (AMEX:AHN) a leader in medical staffing, announced 
      today that it was expanding its Allied business through a focused 
      initiative to be led by a seasoned industry professional. The Allied 
      business is comprised of healthcare workers, who are not physicians or 
      nurses. The company will target top rated growth positions, primarily 
      Physical Therapists, Occupational Therapists, Speech Therapists, 
      Respiratory Therapists and Radiology Technologists.
    
    
      While ATC offices have traditionally done some Allied Business, this new 
      focus will allow ATC to provide a larger and more diverse labor force to 
      meet census fluctuations in all areas of client facilities. 
      Diversification of product will leverage current relationships and 
      contracts and provide additional opportunities to broaden current 
      associations in helping clients provide quality patient care.
    
    
      Richard Adams, who has an outstanding record as an operations solutions 
      provider, will head up this new initiative. In the past decade, Richard 
      has conceived and developed several high-yield marketing and business 
      development campaigns in Allied Services, cumulatively valued at over 
      $150 million. He was National Director of Allied Program Development for 
      Intelistaf HealthCare and was Vice President of Operations for Polaris 
      Consulting with operational control of over 135 healthcare sites, 
      developing programs, recruiting and training rehab staff. He also was 
      Regional Director of Operations for NovaCare and Total Ancillary 
      Therapy, providing management oversight to developing rehab programs in 
      hospital, long-term care and freestanding healthcare entities.
    
    
      “While ATC has been a significant provider in 
      the nursing business, we have wanted to enhance our client offerings 
      with a solid core of Allied Health professionals. I expect our offices 
      to have a focused Allied presence, supported by the expertise that Rick 
      Adams can provide. Together with the expansion of our network into new 
      markets, I expect this Allied Services initiative to be an important 
      part of ATC’s overall growth plan in FY 2008,” 
      said David Savitsky, CEO of ATC Healthcare.
    
    
      About ATC Healthcare, Inc.
    
    
      ATC is a national leader in medical staffing personnel to hospitals, 
      nursing homes, clinics and other healthcare facilities with 54 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.
    
    
      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 the ATC Healthcare, Inc. Annual Report on 
      Form 10-K for the year ended February 28, 2006 as filed with the 
      Securities and Exchange Commission on May 30, 2006 and Form 10-Q for the 
      second quarter of fiscal year 2007, filed on October 16, 2006, or Form 
      10-Q for the third quarter of fiscal year 2007, filed on January 16, 
      2007.