ATC Announces Expansion of Pharmacy Staffing Business.

LAKE SUCCESS, N.Y. -- ATC Healthcare, Inc. (AMEX:AHN), a national leader in medical staffing announced today that its Pharmacy Reserves division is expanding its operation into a number of new locations. These include Detroit, Michigan; Chicago, Illinois; Pittsburgh, Pennsylvania; Cincinnati and Columbus, Ohio; and marketing coverage in Indiana, Kentucky and Tennessee.

ATC announced the start of Pharmacy Reserves, Inc. last June, with a plan to be in 24 cities in the next 3 years. According to US government studies, there is a rising demand for pharmacy services. As the population ages, the demand for pharmacy services in managed care and hospitals is projected to increase and prescribed medications are forecasted to be dispensed with greater frequency. Among those that will require pharmacy services are mail order companies, new pharmacies, supermarkets, and mass-market discounters. As such, the demand for pharmacy staff is very great.

"I'm pleased that in only six months we've been able to prepare the groundwork to begin growing our Pharmacy Reserves network in so many locations." said David Savitsky, CEO of ATC Healthcare, Inc.

Pharmacy Reserves, Inc. provides temporary, contract and permanent placement services in hospitals, retail, mail order, long-term care and home infusion companies. Our team of pharmacy professionals includes Directors of Pharmacy, Staff Pharmacists, Chief Pharmacy Techs and various other pharmacy related specialties. To learn more, visit www.pharmacyreserves.com

About ATC Healthcare, Inc.

ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics, and other health care facilities with 53 locations in 26 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.