AMERICAN TELECOM TO ROLLOUT PAY N' TALK(TM) TELECOM
              LONG DISTANCE SERVICE BUNDLED WITH DIGITAL CORDLESS
                       PHONES IN SEARS STORES NATIONWIDE



Company Contact:  Bruce Hahn, CEO
                  (310) 871-9904

Investor Contact: Matt Hayden, Hayden Communications
                  (858) 704-5059
                  matt@haydenir.com

                              FOR IMMEDIATE RELEASE


City of Industry,  California,  April 18, 2006 - American  Telecom Services Inc.
(AMEX:TES),  a leading  provider of Digital  Cordless  Multi Handset Home phones
bundled with services,  announced the launch of its initial program to sell home
phones  bundled  with  its  proprietary  Pay N' Talk  prepaid  residential  long
distance telephone services powered by IDT, in approximately 1,000 Sears Roebuck
and Company  stores this Spring.  The initial  commitment  is for  approximately
220,000  handsets.  This  program  will  be  supported  by  consistent  national
advertising as well as in-store displays.

     Bruce Hahn, CEO of American Telecom,  commented, "The chain-wide commitment
of support we have received from Sears  provides us with access to a significant
potential customer base for this exciting new product. Our strategy is to become
the  leading  provider of  product-bundled  communication  services  distributed
through  major US  retail  mass  market  channels.  We  believe  that the  broad
introduction of this product to consumers nationwide will enable us to build our
subscriber  base,  driving  recurring  revenue to American  Telecom Services and
Sears."

     American Telecom Services'  proprietary  prepaid long distance  residential
service  offerings under its Pay N' Talk brand,  are powered by IDT Corporation,
one of the largest  prepaid long  distance  providers in the nation.  The Pay N'
Talk  program  offers  potential  annual  savings  of up to 60%  to the  average
household,  when  compared  to rates  offered  by the  incumbent  long  distance
telephone service providers.

     About American Telecom Services



     American Telecom  Services,  a leading provider of traditional and internet
phones bundled with service offerings,  currently offers broadband phone bundles
powered by  SunRocket  (voice-over-Internet-Protocol  or "VoIP") and Pay N' Talk
prepaid residential long distance  communications services powered by IDT. These
services are bundled with ATS' diverse line of custom designed digital, cordless
multi-handset   phones.  ATS  sells  its  phone/service  bundles  through  major
retailers under the "American Telecom",  "ATS" "Pay N' Talk" and "Digital Clear"
brand names.

     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.