Exhibit 99.1


[GRAPHIC OMITTED]

           American Telecom Services Launches Pay N' Talk(TM) Through
                       the Largest Retailer in the World

    Initial shipments of new DECT 6.0 phones to select stores commences in Q2

CITY OF INDUSTRY, Calif., May 2, 2007 /PRNewswire-FirstCall/ -- American Telecom
Services,  Inc.  (Amex:  TES - News),  a  leader  in the  "Convergence  of Voice
Communications",  today announced that the largest retailer in the world has now
launched a Pay N' Talk(TM) program in select stores featuring a new line of DECT
6.0 Interference  Free,  multi-handset  phones enhanced by a calling rate of 3.9
cents per minute  within the United  States and Puerto  Rico and,  for the first
time, also available to 195 cities in Mexico.

Bruce Hahn,  Chief Executive  Officer of American  Telecom  Services  commented,
"During the last 12 months, we have created a major retail distribution  network
and a powerful  marketing  program to support the bundling of Pay N Talk prepaid
long distance with  interference  free  telephones.  This new launch expands our
target audience to one of the fastest growing demographic segments in the United
States by offering one of the lowest rates in the U.S. for calling to Mexico."

For the first time ATS will launch a Visa gift card  program in the package with
select products and in select  channels.  The Visa gift card offering will be an
incentive to activating the consumer's Pay N' Talk service and purchasing Pay N'
Talk minutes.

"Our new Visa gift card  promotion is expected to support our ongoing growth and
to contribute to lower customer  acquisition  costs,"  continued Mr. Hahn. "This
program  will be used in lieu of rebates in  certain  channels  and we will also
utilize this concept with new select  products in certain  channels  where we do
use rebate  programs  in order to  generate  product  awareness  and  meaningful
service activations during our initial launch periods.  While we continue to use
rebates tied to activations in many channels,  the Pay N' Talk-Visa program will
give us a new,  valuable  tool for  enhancing  sell  through  and  creating  new
recurring  service  revenue.  We will  continue  to put  major  emphasis  on our
recurring  revenue  programs and will use programs such as these to increase the
consumer's  motivation  to use our  services  as we are doing in this new Pay N'
Talk launch, in select stores, through the largest retailer in the world."


About American Telecom Services

American  Telecom  Services gives consumers "Good Reasons to Pick up the Phone."
The  company  offers  the only home  phones  that are  bundled  with Pay N' Talk
prepaid  residential  long-distance  services  powered  by IDT  Telecom  (patent
pending)  and is the only  provider  of  DigitalClear(TM)  Internet  phones that
include a built in adapter  and router  built  right into the base of the phones
(patent-pending);  Just "Plug In & Save!" The  DigitalClear  product line offers
consumers  the  opportunity  to save up to $500 on their  phone  services  using
SunRocket or Lingo Internet  phone  service.  For consumers who do not presently
have high speed service at home, all  DigitalClear  products also include a high
speed Internet offer from Broadband  National,  creating a "One Box Solution" to
be sold at retail. The company's products are available  nationally at more than
15,000 retail  locations.  More company and product  information is available at
www.atsphone.com

 For American Telecom Services:

    Adam Somer
    Co-President
    678-636-4384
    adam.somer@atsphone.com

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



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