American Telecom Services Financial Reporting Update

  
    
  
  
    
      American Telecom Services Inc. (AMEX: TES), a provider of converged 
      communications solutions, today announced that the American Stock 
      Exchange (the “Exchange”) 
      has accepted the Company’s plan of remediation 
      with respect to its delinquent Annual Report on Form 10-K for its fiscal 
      year ended June 30, 2007 and that the Company has made a reasonable 
      demonstration of its ability to regain compliance with the applicable 
      continued listing standards of the Exchange and that the Company’s 
      listing on the exchange will be continued pursuant to an extension 
      granted that will expire on January 16, 2008.
    
    
      Additionally, the Company received a notice from the Exchange of its 
      determination that the Company has a financial impairment based on a 
      review of summary financial statements that will be included in the 
      Company’s Annual Report on Form 10-K, that 
      will be filed within the coming week. The summary financials indicated 
      losses and resulting levels of shareholder equity that were below the 
      Exchange’s continued listing standards. The 
      Company is required to submit a plan of remediation (the “Plan”) 
      by January 4, 2008 advising the Exchange of any action it has taken, or 
      will take, that would bring the Company into compliance with the Exchange’s 
      continued listing standards within a 6-month period. Upon receipt of the 
      Plan, the Exchange will evaluate it and determine whether the Company 
      has made a reasonable demonstration of an ability to regain compliance 
      with the Exchange’s continued listing 
      standards. If the Plan is accepted, the Company may be able to continue 
      its listing during the Plan period, during which time it will be subject 
      to periodic reviews to determine whether it is making progress 
      consistent with the Plan.
    
    
      The payment of dividends on the Company’s 8% 
      Convertible Preferred Stock will be delayed. The dividend payment is due 
      on December 15, 2007. According to the terms contained in the Company’s 
      Certificate of Designation for such Preferred Stock, this delay in 
      payment will result in an increase in the dividend rate from 8% to 12% 
      during the time that the dividend arrearage remains in effect.
    
    
      About American Telecom Services
    
    
      American Telecom Services, a leader in converged communications 
      solutions, provides consumers with “Good 
      Reasons to Pick-Up the Phone.” American 
      Telecom Services combines new Interference Free DECT 6.0 feature rich 
      telephones bundled with a variety of pre-paid long distance and Voice 
      over Internet Protocol (VoIP or Internet Phone) calling plans designed 
      to save consumers up to 60% on their telecom service costs. The Company 
      offers the only home phones bundled with Pay N' Talk prepaid residential 
      long-distance services powered by IDT Telecom (patent-pending) and is 
      the only provider of DigitalClear™ Internet 
      phones that include an adapter and router built right into the base of 
      the phones (patent-pending); Just “Plug In & 
      Save!” American Telecom Service's products 
      are available nationally at more than 24,000 retail locations. Visit http://www.atsphone.com 
      for Company and product information.
    
    
      Safe Harbor Statement
    
    
      Any statements in this press release that are not historical facts are 
      forward-looking statements within the meaning of Section 21E of the 
      Securities Exchange Act of 1934, as amended. In some cases, you can 
      identify those forward-looking statements by words such as "may," 
      "will," "should," "expects," "plans," "anticipates," "believes," 
      "estimates," "predicts," "potential," or "continue" or the negative of 
      those words and some other comparable words. These forward-looking 
      statements are subject to risks and uncertainties that could cause 
      actual results to differ materially from historical results or those the 
      Company anticipates. Factors that could cause actual results to differ 
      from those contained in the forward-looking statement include, but are 
      not limited to, those risks and uncertainties described in the Company's 
      prospectus dated December 11, 2006 and the other reports and documents 
      the Company files from time to time with the Securities and Exchange 
      Commission. Statements included in this press release are based upon 
      information known to the Company as of the date of this press release, 
      and the Company assumes no obligation to (and expressly disclaims any 
      such obligation to) publicly update or alter its forward-looking 
      statements made in this press release, whether as a result of new 
      information, future events or otherwise, except as otherwise required by 
      applicable federal securities laws.