ATC Healthcare Announces Agreement With CRAssociates, Inc. to Staff U.S. Government Medical Facilities.

Business Editors

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Nov. 6, 2001

New Revenue Source as Company Expands Nationally to Government Sector

ATC Healthcare Services, Inc. (OTC BB:ATCHA) today announced an agreement with CRAssociates, Inc. ("CRA") whereby ATC will provide nursing staff to various federal medical facilities throughout the country.

CRA based in Newington, VA supplies high quality medical professionals and support staff to government and commercial clients using a variety of contract vehicles. CRA was recently awarded the National Federal Supply contract for Temporary Medical Services for all federal medical facilities.

"When we established a Government Contracts Department earlier this year our objective was to obtain a new revenue source for ATC. This new opportunity with CRA represents a significant benefit from this effort. We are very pleased to be associated with CRA." stated Ed Teixeira, C.O.O. of ATC.

Under the terms of the agreement with CRA, ATC will provide nursing services to federal facilities who contact CRA for services. As a result of this contract, ATC has already received job orders in San Antonio, TX and Boston, MA where ATC opened new government contracting offices. These are new markets for ATC. Potential revenue from this contract attributable to ATC, are estimated between $10 million and $15 million on an annual basis.

David Savitsky, President of ATC, noted "This relationship with CRA represents another example of our strategy to aggressively expand and open additional locations as well as to diversify our business lines. We have already started to see the benefits of this new relationship in several new markets." "Additionally, the recent positive activity in the sector including the IPO of Cross Country (NASDAQ:CCRN) and one anticipated in the coming weeks with U.B.S. Warburg as the underwriter only reinforce our belief in the Street's confidence in the potential of the industry," Savitsky concluded. "We are pleased to have joined with ATC as we work together to supplement health professional staffing for the Government in critical areas." commented C.H. Robbins, CEO, CRAssociates.

About ATC Healthcare, Inc.

ATC provides supplemental staffing, outsourcing and human resources solutions to hospitals, nursing homes, medical and research facilities and industry from 63 locations in 25 states. Drawing from a pool of over 10,000 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 for the year ended February 28, 2001 as filed with the Securities and Exchange Commission on May 25, 2001 and its Quarterly Report on Form 10-Q for the quarter ended August 31, 2001 as filed with the Securities and Exchange Commission on October 15, 2001.