American Telecom Services to Delay Filing of 10K

    CITY OF INDUSTRY, CALIF., October 15 /CNW/ - American Telecom Services
Inc. (AMEX:   TES), a provider of converged communications solutions, today
announced that it would not file its Annual Report on Form 10-K for its fiscal
year ended June 30, 2007 until early November 2007. This filing delay has been
occasioned by input from the Company's independent auditors suggesting that
the Company should continue to evaluate its revenue recognition policies for
specific retail accounts. 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 anticipates that a change in its revenue recognition policy
may result in changes in its operating results for the fiscal year ended June
30, 2007 as previously released on October 1, 2007, although the Company
cannot state with any degree of certainty at this time whether any such
changes will be material. A change in the Company's revenue recognition policy
may result in a timing difference in the recognition of revenue from that
which was originally reported.

    The Company believes that neither its relationships with its retailers
nor its ability to continue to produce new converged communications offerings
will be adversely impacted by a change in its revenue recognition policy. The
Company further believes that any such change would not adversely affect its
retail footprint or its recurring revenue base from services.

    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!" The
DigitalClear product line offers consumers the opportunity to save up to $500
on their phone services using phones bundled with Primus Lingo VoIP services.
Consumers can select phones bundled with Primus Lingo VoIP services. Consumers
who do not possess high-speed Internet service at home can purchase the
service with the only "ONE Box Solution" offered with all DigitalClear
products. American Telecom Service's products are available nationally at more
than 24,000 retail locations. Visit for Company and
product information.

    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,
CFO, 678-636-4394 or Investors: Joe Noel,
415-710-5464 or 925-922-2560

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