ATC Puts Focus On Travel Nurse Business.

Business Editors/Health & Travel Writers

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Oct. 14, 2002

ATC Healthcare, Inc. (AMEX:AHN - News), a national leader in medical staffing, announced that as of October 1, 2002, it had assumed total operational and marketing control of its travel nurse business, Nursing Management Services (NMS).

The NMS division, at $13 million annualized revenue, operated under a management agreement with a third party in Atlanta, Georgia, and has been relocated to ATC's corporate headquarters in Lake Success, New York. A new staff has been hired under the direction of Laura Leigh Carroll, Vice President-Travel Nurse Division. Ms. Carroll, an RN, has held a number of senior management positions in the medical staffing and travel nurse industry. ATC believes that its management of the NMS division will result in increased sales and profitability.

The company recently announced that it had engaged recruiters to bring nurses in from South Africa and India. In addition, the company intends to bring nurses in from the Philippines, Canada and the United Kingdom. These international nurses can add $20-25 million in gross revenue to the NMS division once they start to come through in 12-18 months.

"This is a very significant event at ATC. We are very focused on our travel nurse business. Under our management, I believe that the NMS division will realize its untapped potential for growth and profitability. With a branch network of 70 locations in 28 states that can assist the company in sourcing domestic nurses who want to travel, NMS can grow significantly over the next twelve months. The pricing models that we will employ, will help us boost margins to be more comparable to industry norms," stated David Savitsky, CEO and President.

"I have assembled an experienced and talented staff in New York to run the NMS business. We've begun a national ad campaign. I look forward to this great opportunity to make a significant contribution to ATC in both revenue and profitability," stated Laura Leigh Carroll, Vice President-Travel Nurse Division.

About ATC Healthcare, Inc.

ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other health care facilities with 70 locations in 28 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, 2002 as filed with the Securities and Exchange Commission on June 10, 2002 and Form 10-Q for the quarter ended May 31, 2002 filed with the Securities and Exchange Commission July 15, 2002.