Exhibit 99.1

[GRAPHIC OMITTED]



           American Telecom Services Launches Pay N' Talk(TM) Products
                     Through Office Depot Stores Nationwide

Contact:          Bruce Hahn, CEO
                  (310) 871-9904
                  (404) 261-7466
                  Bruce.Hahn@atsphone.com

Investor Contact: Brett Maas, Principal
                  Hayden Communications
                  (646) 536-7331
                  brett@haydenir.com

Media Relations:  Danielle Ross
                  Comunicano, Inc
                  (858) 314-2958
                  dross@comunicano.com


                              FOR IMMEDIATE RELEASE


City of Industry,  California, October 18, 2006 - American Telecom Services Inc.
(AMEX:  TES), a provider of converged  communications  solutions today announced
that Office Depot and  OfficeDepot.com  have  launched a Pay N' Talk (PNT) phone
program  chain  wide  in   approximately   1,200  stores,   offering   consumers
multi-handset  cordless phone  combinations that are part of the ATS Pay N' Talk
line of home  phones.  The phones come bundled with free Minutes from the Pay N'
Talk prepaid long distance service as part of the program.

Office  Depot's  decision to carry and  nationally  promote Pay N' Talk products
significantly  expands the retail distribution network for this line. The launch
began with the promotion of an ATS Multi Handset Cordless phone combo package in
Office Depot's weekly circular  advertisement in September that reached millions
of homes.  This will continue  throughout the year with additional  circular and
in-store  promotions and the expansion of the line to include  additional Pay N'
Talk products.

Pay N' Talk service offers  consumers the opportunity to save on their regional,
domestic and international  long distance service through one-touch access using
the money  saving green  button on every  handset.  Using the money saving green
button,  consumers can activate their Pay N' Talk account,  use the  promotional
minutes that are included with every phone, make calls and manage their account.
The Pay N' Talk  service  offers  annual  savings of up to 60%  compared  to the
average  household's  residential long distance service fees incurred when using
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 Digital Clear Internet 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.

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.