American Telecom Services Financial Reporting Update.

CITY OF INDUSTRY, Calif. -- American Telecom Services Inc. (AMEX: TES), a provider of converged communications solutions, today announced that the American Stock Exchange (the "Exchange") has accepted the Company's plan of remediation with respect to its delinquent Annual Report on Form 10-K for its fiscal year ended June 30, 2007 and that the Company has made a reasonable demonstration of its ability to regain compliance with the applicable continued listing standards of the Exchange and that the Company's listing on the exchange will be continued pursuant to an extension granted that will expire on January 16, 2008.

Additionally, the Company received a notice from the Exchange of its determination that the Company has a financial impairment based on a review of summary financial statements that will be included in the Company's Annual Report on Form 10-K, that will be filed within the coming week. The summary financials indicated losses and resulting levels of shareholder equity that were below the Exchange's continued listing standards. The Company is required to submit a plan of remediation (the "Plan") by January 4, 2008 advising the Exchange of any action it has taken, or will take, that would bring the Company into compliance with the Exchange's continued listing standards within a 6-month period. Upon receipt of the Plan, the Exchange will evaluate it and determine whether the Company has made a reasonable demonstration of an ability to regain compliance with the Exchange's continued listing standards. If the Plan is accepted, the Company may be able to continue its listing during the Plan period, during which time it will be subject to periodic reviews to determine whether it is making progress consistent with the Plan.

The payment of dividends on the Company's 8% Convertible Preferred Stock will be delayed. The dividend payment is due on December 15, 2007. According to the terms contained in the Company's Certificate of Designation for such Preferred Stock, this delay in payment will result in an increase in the dividend rate from 8% to 12% during the time that the dividend arrearage remains in effect.

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!" 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.