American Telecom Services Continues Aggressive Expansion of Retail Distribution.

Company to Launch Pay N' Talk and Digital Clear Internet Phones at Third Major Office Superstore 

CITY OF INDUSTRY, Calif. -- American Telecom Services Inc. (AMEX: TES), a provider of converged communications solutions, today announced that a third national office superstore chain and one of the largest office superstore franchises in the world, will feature the Company's most popular product line, Pay N' Talk phones with bundled long distance services, in its stores and will initiate a fourth calendar quarter national advertising campaign to support the launch.

Bruce Hahn, American Telecom Services' Chief Executive Officer, commented, "We continue to expand our retail distribution with an additional 1,000 stores being added with this office superstore chain. Retailers are increasingly supportive of our converged service product platforms, which is resulting in a significant expansion of our retail distribution network. We believe this growth in distribution will lead to additional recurring and non-recurring revenue opportunities for the company."

The office superstore will carry a new DECT 6.0 TAD multi-pack, as well as a new full-feature DECT 6.0 two-pack multi handset telephone, utilizing American Telecom Services' Pay N' Talk system bundled with free promotional minutes of long distance powered by IDT Telecom.

In addition, American Telecom Services' Digital Clear[TM] X10001P DECT 6.0 Internet Phone will be featured on the retailer's Internet site. This voice-over-Internet-protocol (VoIP) phone is supported by telephone service from Primus through its VoIP subsidiary, Lingo. The award-winning X10001P, is an Interference-Free, DECT 6.0, cordless, multi-handset Internet telephone, that was previously announced as a bundle with Lingo service on December 20, 2006.

About American Telecom Services

American Telecom Services, a leader in converged communications solutions, provides consumers with "Good Reasons to Pick-Up the Phone." American Telecom Services combines new Interference Free DECT 6.0 feature rich telephones bundled with a variety of pre-paid long distance and Voice over Internet Protocol (VoIP or Internet Phone) calling plans designed to save consumers up to 60% on their telecom service costs. The Company offers the only home phones bundled with Pay N' Talk prepaid residential long-distance services powered by IDT Telecom (patent-pending) and is the only provider of DigitalClear[TM] Internet phones that include an adapter and router built right into the base of the phones (patent-pending); Just "Plug In & Save!" The DigitalClear product line offers consumers the opportunity to save up to $500 on their phone services using phones bundled with Primus Lingo VoIP services. Consumers can select phones bundled with Primus Lingo VoIP services. Consumers who do not possess high-speed Internet service at home can purchase the service with the only "ONE Box Solution" offered with all DigitalClear products. American Telecom Service's products are available nationally at more than 24,000 retail locations. Visit http://www.atsphone.com for Company and product information.

Safe Harbor Statement

Any statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify those forward-looking statements by words such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of those words and some other comparable words. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those the Company anticipates. Factors that could cause actual results to differ from those contained in the forward-looking statement include, but are not limited to, those risks and uncertainties described in the Company's prospectus dated December 11, 2006 and the other reports and documents the Company files from time to time with the Securities and Exchange Commission. Statements included in this press release are based upon information known to the Company as of the date of this press release, and the Company assumes no obligation to (and expressly disclaims any such obligation to) publicly update or alter its forward-looking statements made in this press release, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.