American Telecom Services to Delay Filing of 10-Q

    The Company is Completing the 10-K as a Result of a Resolution Reached on
Revenue Recognition Policy

    CITY OF INDUSTRY, CALIF., November 20 /CNW/ - American Telecom Services
Inc. (AMEX:   TES), a provider of converged communications solutions, today
announced that it would not file its Quarterly Report on Form 10-Q for its
fiscal period ended September 30, 2007 until the completion and filing of its
Annual Report on Form 10-K for its fiscal year ended June 30, 2007. The
Company presently anticipates that it will file its Annual Report on Form 10-K
in December 2007 and its quarterly report on Form 10-Q shortly thereafter.

    The Company's process to file these reports in a timely manner has been
occasioned by a delay in finalizing the financial results of the immediately
preceding fiscal year and period as a result of input from the Company's
independent auditors suggesting that the Company should continue to evaluate
its revenue recognition policies for specific retail accounts, as discussed in
its press release dated October 15, 2007. Given the Company's relatively short
operating history upon which to specifically formulate accounting estimates
for returns and rebates, a "sell-through" methodology of revenue recognition
may be more appropriate than the "sell-in" methodology currently employed by
the Company for specific retailer accounts.

    The "sell-through" methodology would require the Company to defer
recognition of revenues from the sale of its phone products until such time
they are purchased by the retail consumer. The "sell-in" methodology enables
the Company to recognize revenues from the sale of its phone products at the
time they are shipped to its retailers under firm purchase commitments.

    The Company was required to and has submitted its plan of remediation to
the American Stock Exchange. In accordance with this plan, the Company is
progressing toward finalizing the results for the fiscal year ended June 30,
2007, filing the Annual Report on Form 10-K in December and its Quarterly
Report on Form 10-Q for the period ended September 30, 2007 shortly
thereafter. The Company anticipates that the trading of the Company's stock on
the American Stock Exchange will be temporarily halted until such time that a
range of summary financial information for the fiscal period ended September
30, 2007 can be released.

    The Company does not anticipate that its change in revenue recognition
policy will result in a restatement of any of its previously disclosed
operating results.

    The Company believes that its relationships with its retailers and its
ability to continue to produce new converged communications offerings will not
be impacted by a change in its revenue recognition policy. The Company further
believes that any such change would not impact its recurring revenue base from

    About American Telecom Services

    American Telecom Services, a leader in converged communications
solutions, provides consumers with "Good Reasons to Pick-Up the Phone."
American Telecom Services combines new Interference Free DECT 6.0 feature rich
telephones bundled with a variety of pre-paid long distance and Voice over
Internet Protocol (VoIP or Internet Phone) calling plans designed to save
consumers up to 60% on their telecom service costs. The Company offers the
only home phones bundled with Pay N' Talk prepaid residential long-distance
services powered by IDT Telecom (patent-pending) and is the only provider of
DigitalClear(TM) Internet phones that include an adapter and router built
right into the base of the phones (patent-pending); Just "Plug In & Save!"
American Telecom Service's products are available nationally at more than
24,000 retail locations. Visit for Company and product

    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 December 11, 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.

For further information:

For further information: American Telecom Services Inc. Edward James,
678-636-4394 (CFO) or Investors: Joe Noel,
415-710-5464 or 925-922-2560

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