AHN Atc Healthcare,

ATC Healthcare, Inc., (AMEX:AHN) a leader in medical staffing, announced today that it was expanding its Allied business through a focused initiative to be led by a seasoned industry professional. The Allied business is comprised of healthcare workers, who are not physicians or nurses. The company will target top rated growth positions, primarily Physical Therapists, Occupational Therapists, Speech Therapists, Respiratory Therapists and Radiology Technologists. While ATC offices have traditionally done some Allied Business, this new focus will allow ATC to provide a larger and more diverse labor force to meet census fluctuations in all areas of client facilities. Diversification of product will leverage current relationships and contracts and provide additional opportunities to broaden current associations in helping clients provide quality patient care. Richard Adams, who has an outstanding record as an operations solutions provider, will head up this new initiative. In the past decade, Richard has conceived and developed several high-yield marketing and business development campaigns in Allied Services, cumulatively valued at over $150 million. He was National Director of Allied Program Development for Intelistaf HealthCare and was Vice President of Operations for Polaris Consulting with operational control of over 135 healthcare sites, developing programs, recruiting and training rehab staff. He also was Regional Director of Operations for NovaCare and Total Ancillary Therapy, providing management oversight to developing rehab programs in hospital, long-term care and freestanding healthcare entities. �While ATC has been a significant provider in the nursing business, we have wanted to enhance our client offerings with a solid core of Allied Health professionals. I expect our offices to have a focused Allied presence, supported by the expertise that Rick Adams can provide. Together with the expansion of our network into new markets, I expect this Allied Services initiative to be an important part of ATC�s overall growth plan in FY 2008,� said David Savitsky, CEO of ATC Healthcare. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other healthcare facilities with 54 locations in 35 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. 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 the ATC Healthcare, Inc. Annual Report on Form 10-K for the year ended February 28, 2006 as filed with the Securities and Exchange Commission on May 30, 2006 and Form 10-Q for the second quarter of fiscal year 2007, filed on October 16, 2006, or Form 10-Q for the third quarter of fiscal year 2007, filed on January 16, 2007.