TES American Telecom Services,

CITY OF INDUSTRY, Calif., May 31 /PRNewswire-FirstCall/ -- American Telecom Services, Inc. (AMEX:TES), a provider of Digital Clear(TM) Internet phones (Voice-Over-Internet-Protocol or "VoIP") and Pay N' Talk pre-paid long distance communication services bundled with digital cordless multi-handset phones announced today that it has filed a patent application covering the functionality of a cordless, multi-handset Internet phone that incorporates the Internet Protocol (IP) voice platform, router and charger in the base of the master unit. Current products rely on various combinations of separate routers, IP gateways (Analog Telephony Adapters), traditional phones, and wiring into existing home phone networks that sometimes require specialized technicians. Bruce Hahn, CEO of American Telecom Services, commented, "With our innovative bundled product approach, our Internet phones can be sold in the telephone section of the retailer, where other phones are sold. With our Digital Clear phones, the customer can easily install the phone and incorporate multiple phone handsets around their home without the need for any complex or extra wiring. Our products provide consumers with the savings and crystal-clear quality of VoIP technology for telephone service with the convenience of simply plugging the phone into the modem." Mr. Hahn added, "We believe that the only way to successfully introduce Internet phones and telephone services into the mass market was to make the phones exceptionally easy to connect, and ensure they operate just like a traditional phone. Part of that understanding comes from making the phone look identical to the phones that consumers have been using for years in their homes. While other companies talk about the benefits of Internet phones and service, we've focused on delivering those services in a way the consumer can relate to. We have accomplished this important product goal and will continue our research initiatives to deliver new product innovations which further improve the users experience." 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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