AHN Atc Healthcare,

ATC Healthcare, Inc., (AMEX:AHN-News) a leader in medical staffing, announced today that it had executed an agreement with Adena Health System of Chillicothe, Ohio to function as primary vendor to the Adena Health System, managing its personnel outsourcing needs by utilizing ATC's Alpha Source(R) Program. Adena Healthcare System, located in South Central Ohio, provides its local communities with exceptional healthcare services and programs within Adena Regional Medical Center, Greenfield Regional Medical Center and 3 Urgent Care Centers. Adena Healthcare System offers emergency and urgent care services, cardiac services, pain management, diagnostic services, occupational and treatment services and home health care. ATC will install and administer its proprietary web-based software and will function as the vendor coordinate for all Adena Healthcare System's $1.5 million dollar outsourced staffing requirements. In this capacity, ATC will implement an electronic accounting and management system, thereby enhancing efficiency and productivity. "ATC is proud to announce this affiliation with Adena Health System. We believe we can streamline the day-to-day management of subcontractor personnel to assure that nursing services are provided in the most cost efficient manner, but consistent with a high level of patient satisfaction." said David Savitsky, Chief Executive Officer. 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.