ATC Healthcare Revenue Increases 25% for the First Quarter of Fiscal 2008 from the Comparable Quarter.

LAKE SUCCESS, N.Y. -- ATC Healthcare, Inc. (AMEX:AHN), a leader in medical staffing, today reported results for its first quarter of fiscal 2008, which ended May 31, 2007.

Revenues increased by $4.9 million, or 25%, to $24.8 million for the first quarter of Fiscal 2008, compared to $19.8 million for same period last year. The increase in revenues resulted primarily from strong growth in the Company's travel nurse unit as well as increased business in ATC's per diem nursing division. In addition, the June 2006 acquisition of Critical Nursing Solutions continued to provide increased revenues during the first quarter. Service costs were 78.7% of total revenues for the first quarter of fiscal 2008 compared to 77.8% the same period last year. Service costs represent all direct costs of providing services to our clients. The increase was due primarily to higher wages and benefits paid to nurses based on the market conditions during the quarter. The Company is continuing to pursue higher margin business throughout the remainder of Fiscal 2008.

Income from operations for the first quarter of Fiscal 2008 increased 71% to $354 thousand compared to $207 thousand for the same period last year. Net loss for the first quarter decreased 59% to $140 thousand compared to $235 thousand for the same period last year. The Company continues to work diligently on executing its plan, with the goal of attaining profitability in Fiscal 2008.

"We are happy with the continued revenue growth of 25%," stated David Savitsky, Chief Executive Officer. "During the first quarter we experienced strong growth in both our traveling nurse and per diem nurse units, as demand for nurses continues to increase. During the quarter we opened a new office in San Diego, California in response to an increased demand for medical personnel and believe this new office will help achieve additional growth in the important California marketplace. The entire ATC team is not only focused on continued revenue growth but more importantly on attaining profitability through higher margin business and maintaining good control of costs."

ATC First Quarter Earnings Call

The conference call will take place at 4:15 p.m. EDT on Tuesday, July 17, 2007. Anyone interested in participating should dial 1-888-469-6384 if calling within the United States or 1-480-629-9564 if calling internationally approximately 5 to 10 minutes prior to 4:15 p.m. Participants should ask for the ATC Healthcare 2007 First Quarter Financial Results conference call. There will be a playback available until July 24, 2007. To listen to the playback, please call 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use the pass code 3759512 for replay.

Forward Looking Statements

Certain statements contained in this release that are not statements of historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words -- "believe", "expect", "anticipate", "intend", "will", and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding our future financial position, timing of future revenue, business strategy and cost savings. These forward-looking statements are based on our current beliefs, as well as assumptions we have made based upon information currently available to us. These forward-looking statements may be affected by the risks and uncertainties in our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended February 28, 2006. We do not assume, and expressly disclaim, any obligation to update these forward-looking statements.

About ATC Healthcare, Inc.

ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other healthcare facilities with 52 locations in 31 states. ATC provides supplemental staffing, outsourcing and human resource 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 website at www.atchealthcare.com.

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