ATC Announces New License Location in West Portsmouth Ohio.

LAKE SUCCESS, N.Y. -- ATC Healthcare, Inc., (AMEX:AHN) a leader in medical staffing, today announced that it has signed a License Agreement with SONS Nursing, LLC for the Southern Ohio and Cincinnati markets. SONS Nursing, LLC is a medical healthcare staffing company who has been supplying RNs, LPNS and CNAs to medical care facilities throughout Southern Ohio.

According to David Savitsky, ATC's CEO, "The addition of a new Licensee in Portsmouth complements our existing Ohio network which includes Columbus and Cleveland. SONS Nursing will provide staffing services for the growing Cincinnati staffing market."

ATC has now added 7 new licensees to their network and is on track to open 10 new 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 54 locations in 23 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 and 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 for the year ended February 29, 2004 as filed with the Securities and Exchange Commission on May 28, 2004 and the quarterly report on form 10-Q for the Quarter ended May 31, 2004 as filed with the Securities and Exchange Commission on July 15, 2004.