TES American Telecom Services,

CITY OF INDUSTRY, Calif., May 25 /PRNewswire-FirstCall/ -- American Telecom Services, Inc. (AMEX:TES) a provider of Internet phone ("VoIP") and prepaid long distance communications service bundled with digital, cordless, multi-handset phones, announced today that it is now eligible to certify telephones with the FCC that use Digitally Enhanced Cordless Telecommunications (DECT) Technology using the 1.9 gigahertz (GHz) band, a necessary step in bringing such products to U.S. market. The 1.9 GHz band is reserved for phones that use the DECT standard, which is a cellular system similar to the cellular standard GSM. A major difference between the systems is the cell radius. GSM is designed for wide-area mobile use and DECT is designed for use in smaller areas such as the home. Phones using DECT technology on the 1.9 GHz band will provide the user with a far better experience as compared to using a phone on the unlicensed 900 megahertz (MHz), 2.4 GHz or 5.8 GHz, bands where cordless telephones often encounter interference from garage door openers, microwave ovens, baby monitors, wireless LANs (Wi-Fi) and other wireless devices. As part of American Telecom Services' commitment to DECT technology, the Company has joined UTAM, Inc., the organization designated by the Federal Communications Commission (FCC) as the coordinator for the 1.9 GHz band. Part of UTAM's oversight role has been to clear the 1.9 GHz band of its previously licensed users and making the deployment of DECT phones possible. ATS has received an affidavit from UTAM stipulating ATS as a participating member in good standing for the purposes of Section 15.307(b) of the FCC rules. ATS has committed to pay, on a per-user basis, a small fee to UTAM. Bruce Hahn, CEO of American Telecom Services, commented, "Our UTAM membership, and the rights that it provides, is the another step towards the successful execution of our strategy to embrace DECT technology in our products. The adoption of the DECT standard is in keeping with our commitment to provide products bundled with state-of-the-art technology at the lowest possible cost, and with the highest possible quality. DECT is a proven technology that has been used throughout Europe and other parts of the world for years. We look forward to bringing this advanced architecture to consumers through our retail partners in the form of outstanding products." About American Telecom Services, Inc. American Telecom Services, Inc. offers Internet phone (Voice-over- Internet-Protocol) and prepaid long distance communications services that are bundled with the Company's digital, cordless multi-handset phones. American Telecom sells its phone/service bundles through major retailers under its "American Telecom", "ATS", "Pay N' Talk" and "Digital Clear" brand names. The Company's strategic partners include SunRocket, Inc., a provider of VoIP services, for the Company's Internet phone service offering, and IDT Corporation for the Company's prepaid long distance service offering. 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. Contact: Bruce Hahn, CEO American Telecom Services, Inc. (404) 261-7466 Investor Contact: Matt Hayden, President Hayden Communications (858) 704-5065 DATASOURCE: American Telecom Services, Inc. CONTACT: Bruce Hahn, CEO of American Telecom Services, Inc., +1-404-261-7466, ; or Investors, Matt Hayden, President of Hayden Communications, +1-858-704-5065, , for American Telecom Services, Inc.

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