ATC Expands Services into the Milwaukee Market; New Office Will Focus on Allied Medical Personnel.

LAKE SUCCESS, N.Y. -- ATC Healthcare, Inc., (AMEX: AHN) a leader in medical staffing, announced today that it has opened a new office in Milwaukee, Wisconsin. This office will provide medical personnel to the hospitals, long-term care facilities, acute care facilities, and physician's practices throughout the Milwaukee metro market.

"We are excited about opening a new location where the emphasis will be on allied staffing, in addition to the nurse staffing we always do. ATC will now be doing business in 34 states and can more fully service the Milwaukee-Chicago land corridor together with our existing offices in Oak Park and Crestwood, Illinois," stated David Savitsky, CEO.

About ATC Healthcare, Inc.

ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other health care facilities with 59 locations in 34 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 health care 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 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 first quarter of fiscal year 2007, filed on July 17, 2006.