AHN Atc Healthcare,

ATC Healthcare, Inc., (AMEX:AHN) a leader in medical staffing, announced today that it has signed a new License Agreement for the operating rights to the Rhode Island market. The office will be located in Newport and will provide per diem and long-term staffing to hospitals, nursing homes and medical facilities throughout the state. "Our new licensee has extensive medical staffing experience in the Rhode Island market. We're looking forward to this state becoming a real growth area for ATC," said David Savitsky, Chief Executive Officer. The ATC Licensee Program is an important part of the company's overall strategic plan for expanding its reach into new markets and rebuilding its sales. New licensees are carefully selected for their experience and either own or have operated a medical staffing business in the geographical location. They can bring to bear their local experience to give ATC a quick start in becoming a market presence. Since January of this year, ATC has opened 6 new Licensed offices. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics, and other health care facilities with 53 locations and conducts business in 31 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/A for the year ended February 28, 2005 as filed with the Securities and Exchange Commission on September 26, 2005.