
                                                                    Exhibit 99.1


                                [GRAPHIC OMITTED]


     American Telecom Services To Launch New Pay N' Talk DECT 6.0 Phones In
                       More Than 5,400 Rite Aid Locations

     American Telecom Services Expands Total Retail Locations to over 23,000

Contact: Company                    Investors:
Bruce Hahn, CEO                     Brett Maas
(310) 871-9904                      Hayden Communications
(404) 261-7466                      (646) 536-7331
Bruce.Hahn@atsphone.com             brett@haydenir.com


                              FOR IMMEDIATE RELEASE


City of Industry,  California,  July 31, 2007 - American  Telecom  Services Inc.
(AMEX: TES), a provider of converged communications  solutions,  today announced
that it will launch two new Pay N' Talk DECT 6.0  telephones  in more than 5,400
Rite Aid  locations  with plans to have  product in stores to coincide  with the
2007 holiday season.

All  products  will offer free  promotional  minutes  to the  consumer  with the
purchase of any Pay N' Talk (PNT) phone.

Bruce Hahn,  American  Telecom  Services'  Chief Executive  Officer,  commented,
"American  Telecom  Services  continues  to expand its retail  presence  through
mainstream,  national retail  distribution  channels.  Our value proposition for
retailers, as well as consumers who shop stores like Rite Aid, is compelling, as
we offer strong sell-through,  enticing value for consumers, and ongoing revenue
from the pre-paid long distance service  recharges to the retailer.  We continue
to increase our presence among distinguished  retail  distribution  partners and
expand the number of our  products  prominently  displayed  by  retailers.  This
effort  enhances  our  visibility  and brand  recognition  while  simultaneously
building  a solid  foundation  to grow our  subscriber  base and  drive  ongoing
recurring revenue."

About American Telecom Services

American  Telecom  Services,  a leader in  converged  communications  solutions,
provides  consumers with "Good Reasons to Pick-Up the Phone."  American  Telecom
Services combines new Interference Free DECT 6.0 feature rich telephones bundled
with a variety of pre-paid long distance and Voice over Internet  Protocol (VoIP
or Internet  Phone)  calling plans designed to save consumers up to 60% on their
telecom service costs.  The Company offers the only home phones 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 an  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




<PAGE>


their phone  services  using phones  bundled  with Primus  Lingo VoIP  services.
Consumers can select phones bundled with Primus Lingo VoIP  services.  Consumers
who do not possess high-speed  Internet service at home can purchase the service
with the only  "ONE  Box  Solution"  offered  with  all  DigitalClear  products.
American Telecom Service's products are available nationally at more than 23,000
retail locations. Visit www.atsphone.com for Company and product information.

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
December 11, 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.


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