AHN Atc Healthcare,

ATC Healthcare, Inc., (AMEX:AHN - News) a leader in medical staffing, announced today that it is one of the awardees of the contract issued by the state of New Jersey, Division of Purchase and Property. The contract, valued at four million dollars, is to provide medical staffing to various state agencies including the Department of Veterans Affairs, Department of Human Services and Department of Corrections. The agencies under the contract can place Registered Nurses, Licensed Practical Nurses, Certified Nursing Assistants, and Emergency Medical Technician services. Medical facilities affected by this contract include state psychiatric, long term care, and developmental disability institutions. "This contract will increase the sales in our Cherry Hill, New Jersey office," said David Savitsky, Chief Executive Officer. "Based on prior experience in these facilities, we anticipate additional sales of approximately $1.3 million per year. This contract will run for three years and, as such, will add to the long term, stable base of business we are looking to achieve with our government contracting program." ATC is starting to see significant gains in its government healthcare division, building on the recently announced 12 million dollar staffing contracts in Jackson, Michigan and Devans, Massachusetts. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics, and other health care facilities with 50 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 for the year ended February 28, 2005 as filed with the Securities and Exchange Commission on June 13, 2005.