EX-99
2
form8k_092606ex991.txt
EXH. 99.1 PRESS RELEASE


                                                                    Exhibit 99.1


[GRAPHIC OMITTED]


                       American Telecom Services Announces
              Financial Results for Fourth Quarter and Fiscal 2006


Contact: Company            Investors:                   Media:
Bruce Hahn, CEO             Brett Maas or Matt Hayden    Daniell Ross
(404) 261-7466              Hayden Communications        Comunicano, Inc.
Bruce.Hahn@atsphone.com     (646) 536-7331               (858) 314-2958
                            Brett@haydenir.com           dross@comunicano.com


City of Industry,  California,  September 26, 2006 - American  Telecom  Services
Inc.  (AMEX:  TES),  a provider  of  converged  communications  solutions  today
announced  financial results for its fourth fiscal quarter and audited financial
results for the fiscal year ended June 30, 2006.

For the fourth fiscal quarter ended June 30, 2006, we recognized  total revenues
of $2.7 million primarily from the sale of the Company's phone products. Cost of
sales  for the  quarter  was $1.5  million,  resulting  in gross  profit of $1.2
million or 44.4 percent of sales.  Total  operating  expenses were $2.5 million,
inclusive of non cash charges of $255,000  relating to share-based  compensation
granted to employees and non-employees for services.

For the full  fiscal year ended June 2006,  total  revenue  recognized  was $3.1
million,  compared to no revenue in fiscal 2005. Cost of sales was $1.8 million,
resulting  in a gross profit of $1.3  million,  or 41.9 percent of sales for the
fiscal year ended June 30, 2006 compared to no cost of sales and no gross profit
in the fiscal  year ended June 30,  2005.  Total  operating  expenses  were $4.7
million,  inclusive  of $380,000  of non cash  charges  relating to  share-based
compensation  granted to employees and non-employees  for services,  compared to
$169,248 of  operating  expenses  for the fiscal year ended June 30,  2005.  The
Company  incurred $2.6 million in selling,  marketing and  development  expenses
during the  fiscal  year ended June 30,  2006  compared  to $84,813 in  selling,
marketing  and  development  expenses  last  year.  General  and  administrative
expenses for the fiscal year ended June 30, 2006 were $2.2 million,  compared to
$84,435 in general and administrative  expenses for the prior year. Net loss for
the year ended June 30, 2006 was $5.7 million,  or $1.54 per fully diluted share
(based on  approximately  3.7 million  shares  weighted  average  common  shares
outstanding),  compared to a net loss of  $170,248,  or $0.09 per fully  diluted
share (based on approximately  2.0 million shares weighted average common shares
outstanding)  for the fiscal year ended June 30, 2005.  Included in our net loss
for the fiscal  year  ended  June 30,  2006 was  approximately  $2.9  million in
non-cash  charges,  including $2.4 million in  amortization of debt discount and
debt issuance costs directly  related to debt financings which occurred prior to
our initial public offering.

"Fiscal 2006 was a pivotal year for American Telecom  Services,  as we completed
our IPO,  introduced our initial product lines,  achieved  distribution in 9,500
retail locations  nationwide,  secured commitments for several diverse marketing
initiatives  facilitated through our retail channels and laid the groundwork for
significant  growth during fiscal 2007,"  commented Bruce Hahn,




chief executive officer of American Telecom Services,  Inc. "While we incurred a
full-year  of expenses  during  fiscal  2006,  as we prepared for our launch for
future  product sales,  we only  recognized  substantial  revenues in the fourth
quarter."

The Company  concluded  the fiscal year end June 30, 2006 with $12.4  million in
cash and cash equivalents compared to $50,780 in cash and cash equivalents of as
of June 30,  2005.  The Company  ended the 2006 fiscal year with $1.1 million in
accounts  receivable,  $0.8 million in prepaid expenses of which $0.5 million is
related  to  advances  to  suppliers  to  purchase  inventory  and $2.2  million
inventory  consisting of finished goods. Working capital was $15.1 million as of
June 30, 2006.

American Telecom Services offers Internet Phones bundled with Internet Telephone
Service  utilizing its patent pending Digital Clear technology and leverages the
backbone  of the  large  VoIP  provider  named Sun  Rocket.  This  provides  its
customers with an integrated  platform including clear voice and simple plug and
play  connectivity  that  can  be  expanded  to  accommodate  multiple  handsets
throughout the home. In addition,  American Telecom Services' patent pending Pay
N' Talk is a proprietary  prepaid  residential  long distance  service  provided
through IDT, a NYSE-listed global leader in prepaid.

Teleconference Information

The Company  will host a  conference  call at 4:45 PM ET today to discuss  these
results.  Interested  participants  should dial 800-632-2975 when calling within
the    country-regionplaceUnited    States   or   973-935-8755    when   calling
internationally.  There will be a playback  available until October 3. To listen
to  the   playback,   please  call   877-519-4471   when   calling   within  the
country-regionplaceUnited  States or 973-341-3080 when calling  internationally.
Please  use pass code  7906050  for the  replay.  This call is being  webcast by
ViaVid  Broadcasting  and can be  accessed  at  American  Telecom's  web site at
http://www.atsphone.com.  The webcast  may also be accessed at ViaVid's  website
at:  http://viavid.net/dce.aspx?sid=000035ED.  The webcast can be accessed until
October 26, 2006 on either site.

About American Telecom Services

American  Telecom  Services,  a leading  provider  of  converged  communications
solutions,  currently  offers Digital Clear  Internet  phone bundles  powered by
SunRocket  (voice-over-Internet-Protocol  or  "VoIP")  and Pay N'  Talk  prepaid
residential  long distance  services  powered by IDT. These services are bundled
with ATS' diverse line of custom designed,  cordless  multi-handset  phones. ATS
sells its  phone/service  bundles  through major  retailers  under the "American
Telecom," "ATS" "Pay N' Talk" and "Digital Clear" brand names.

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 February 1, 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.






Statements of Operations Data:

For the fiscal years ended June 30, -------------------------------------------------------- 2006 2005 2004 ---------------- ---------------- ----------------- Revenues $ 3,100,177 $ - $ - Cost of sales 1,801,565 - - ---------------- ---------------- ----------------- Gross profit 1,298,612 - - Expenses: Selling, marketing and development 2,556,011 84,813 22,058 General and administrative 2,154,128 84,435 3,000 ---------------- ---------------- ----------------- Total expenses 4,710,139 169,248 25,058 Other expenses (income): Interest income (223,033) - - Interest expense and bank charges 125,186 75 - Amortization of debt discounts and debt issuance costs 2,424,366 925 - ---------------- ---------------- ----------------- Net loss $ (5,738,046) $ (170,248) $ (25,058) ================ ================ ================= Earnings per Share Data: Net loss per common share: Basic and diluted $ (1.54) $ (0.09) $ (0.01) ================ ================ ================= Weighted average shares outstanding: Basic and diluted 3,737,806 1,996,261 1,740,490 ================ ================ ================= Other Financial Data: Net cash (used in) provided by operating activities $ (5,847,855) $ 780 $ - Net cash used in investing activities (194,544) - - Net cash provided by financing activities 18,364,384 50,000 - Balance Sheet Data: As of --------------------------------- June 30, 2006 June 30, 2005 --------------- ------------- Working capital (deficit) $ 15,062,582 $ (173,395) Cash and cash equivalents $ 12,372,765 $ 50,780 Current assets $ 16,423,275 $ 50,780 Total assets $ 16,673,546 $ 174,298 Current liabilities $ 1,360,693 $ 224,175 Total liabilities $ 1,360,693 $ 225,175 Shareholders' equity (deficit) $ 15,312,853 $ (50,877)

The following information was filed by American Telecom Services Inc (ATEL) on Tuesday, September 26, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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