TES American Telecom Services,

E6501 is First of Several Planned DECT Internet Phone Releases Planned for 2006 CITY OF INDUSTRY, Calif., June 14 /PRNewswire-FirstCall/ -- American Telecom Services, Inc. (ATS) (AMEX:TES), a provider of both Digital Clear Internet Phones Voice-Over-Internet-Protocol (VoIP) and Pay N Talk pre-paid long distance communication services bundled with digital cordless multi-handset phones, announced today the release of its first DECT 6.0 cordless multi handset Internet phone. The release of the new home and small office phones represents a significant advancement in Internet based telephone technology and consumer ease-of-use. "We are excited that ATS is leading the Voice over IP industry with the introduction of advanced Internet phones," said Bruce Hahn, CEO of American Telecom Services. "Early on we recognized that most consumers wanted a simple, easy to install phone system, so we produced a product which integrates all the required hardware inside the system's base, creating a solution which is easy to recognize as a phone in the store and remarkably simply to install and utilize." Efficient design and production allows ATS to price the E6501 and E6502 in a range comparable to traditional phones and removes almost all of the barriers to entry for an Internet user's conversion to VoIP. The E6501 includes ATS' patent-pending Digital Clear functionality and is expandable to up to five total handsets. The release of the E6501 also marks a significant milestone for the Internet phone industry by being the first cordless phone to use DECT technology that integrates a router and a SIP (Session Initiation Protocol) VoIP platform in the charging base of the master cordless phone unit. "Internet phone users no longer need to purchase a separate analog telephony adapter (ATA) and telephone or undergo the added effort and expense of re-wiring their home to use their service around their house because all the needed functionality is included in this single affordable device," said Adam Somer, Co-President of ATS. Priced for less than $50 for the master base E6501, ATS also is introducing a companion expansion handset, the E6502, that will retail for less than $30. The phone will be sold in multiple retail package configurations ranging from stand-alone masters and extensions to combination sets of a master base and up to four additional handsets. Phones will be sold bundled and configured to support all ATS service partner offerings. "The DECT platform used to develop this new Internet phone system, combined with the Digital Clear technology, allows a cost effective product to be introduced to the consumer with substantial cost savings and has a lower cost than many comparable traditional phone systems," added Hahn. E6501 highlighted features include: * DECT 6.0 communication with a range of more than 650 feet * Expandable design up to 5 total handsets * Integrated router * SIP compliant VoIP platform * LCD display * Page/Locater button on base * Intercom between handsets * Speakerphone on all handsets * Headset jack on all handsets (need to confirm) * Auto-software update and configuration * Network driven time and date * 10 different, user selectable ring tones 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. Editors Note: Product specifications and images of these products may be found at: E6501: http://atsphone.com/internet/6501.html E6502: http://atsphone.com/internet/6502.html 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 Media Contact: Brooke Davidson Comunicano (858) 314-2958 DATASOURCE: American Telecom Services, Inc. CONTACT: Bruce Hahn, CEO of American Telecom Services, Inc., +1-404-261-7466, ; or Matt Hayden, President of Hayden Communications, +1-858-704-5065 , for American Telecom Services, Inc.; or Brooke Davidson of Comunicano, +1-858-314-2958,

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