ATC Healthcare Expands into the D.C. Market with a New Licensee.

Business Editors/Health/Medical Writers

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Dec. 16, 2003

ATC Healthcare, Inc. (AMEX:AHN - News), a national leader in medical staffing, today announced that it has signed a Licensee Agreement with Grace Nursing Services, Inc. Grace will be responsible for providing medical staffing services to the Greater D.C. market. "This is our first new Licensee in the past year and signals a significant effort on ATC's part to begin signing on new Licensees in the coming months," stated David Savitsky, CEO.

"We are currently in negotiation to open Licensees in the San Francisco, Los Angeles and Portland, Oregon markets," continued Savitsky.

ATC is looking to add 10 new Licensees in the next 12 months.

ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other health care facilities with 50 locations in 25 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 for the year ended February 28, 2003 as filed with the Securities and Exchange Commission on June 13, 2003 and Quarterly Report on form 10-Q for the Quarter ended August 31, 2003 as filed with the Securities and Exchange Commission on October 15, 2003.