ATC Environmental Inc. reports 92% increase in first quarter net income on 54% increase in first quarter revenues.

NEW YORK--(BUSINESS WIRE)--July 15, 1996--Morry F. Rubin, President and Chief Executive Officer of ATC Environmental Inc., (NASDAQ: ATCE) announced today that the Company achieved record results for the quarter ended May 31, 1996.

First quarter net income increased 92% on a 54% revenue gain. ATCE reported record first quarter revenues of $16,645,983 for the quarter ended May 31, 1996 as compared to revenues of $10,814,953 for the comparable prior-year period and net income of $1,718,303 compared to $895,126 for the comparable prior-year period. Earnings per share for the first quarter reached $0.20 versus $0.15 in the prior year on a 42% increase in weighted average shares outstanding primarily attributable to additional share issuance related to the company's public offering in October, 1995.

Commenting on the first quarter results, Morry F. Rubin, President and Chief Executive Officer of ATC Environmental, Inc. said "the record quarterly results demonstrate that the positive momentum from our past acquisitions and from our ongoing focus on bottom-line profitability continues to build. Furthermore, the first quarter results did not fully reflect the impact of our most recent acquisitions of the assets of ATEC Associates, Inc. and 3D Information Systems, Inc., announced on May 28, 1996. With the acquisition of ATEC, ATC significantly expanded its revenue base and geographic presence in major U.S. markets and has laid the groundwork for future "tuck-in" acquisitions of additional environmental consulting and engineering firms. With the acquisition of 3D, ATC extends its proven skills in the consolidation and management of technical services businesses into the rapidly growing information technology consulting industry. 3D is a specialized supplier of highly trained computer personnel to Fortune 500 corporations."

ATC is a national business services firm providing specialized technical and project management services to Fortune 500 corporations and federal, state and local government agencies. ATC provides environmental consulting and engineering services to its clients through 60 branch offices in 30 states, and information technology consulting services to clients in the Mid-Atlantic region through its wholly-owned subsidiary, ATC Insys Technology, Inc., headquartered in New Jersey. -0-

                                    (Unaudited)
                                Three Months Ended
                                       May 31
                      1996         1995       $ Change   % Change

REVENUES           16,645,983   10,814,953    5,831,030     54%

INCOME BEFORE
 INCOME TAXES       2,772,303    1,462,628    1,309,675     90%

NET  INCOME         1,718,303      895,126      823,175     92%

Fully diluted
 earnings per share     $0.20        $0.15         . 05     42%

Weighted Average Shares
   Outstanding      8,680,339    6,123,312           --     33%

CONTACT: Morry F. Rubin

President & CEO

ATC Environmental Inc.

[phone]