TES American Telecom Services,

Dutton Associates initiates its coverage of American Telecom Services Inc. (AMEX:TES), with a Strong Speculative Buy rating and a 12-month price target of $9.00. The 22-page report by Dutton Associates senior analyst Joe Noel is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and Knobias and other leading financial portals. We believe American Telecom Services is a hybrid company with no true close comparables. The Company offers service bundles for residential home phone service, which include leading edge handsets and very low cost telecommunications services to an extensive network of retailers, TV shopping channels and e-tailers. These distribution partners then market these pre-packaged service bundles to consumers and small businesses within the United States. American Telecom receives revenues from the sales of the equipment and shares in the revenues from monthly service fees and per minute usage. We believe such a strategy is very innovative and likely to prove highly successful. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 28 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The current cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 11/29/06. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing. Dutton Associates initiates its coverage of American Telecom Services Inc. (AMEX:TES), with a Strong Speculative Buy rating and a 12-month price target of $9.00. The 22-page report by Dutton Associates senior analyst Joe Noel is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and Knobias and other leading financial portals. We believe American Telecom Services is a hybrid company with no true close comparables. The Company offers service bundles for residential home phone service, which include leading edge handsets and very low cost telecommunications services to an extensive network of retailers, TV shopping channels and e-tailers. These distribution partners then market these pre-packaged service bundles to consumers and small businesses within the United States. American Telecom receives revenues from the sales of the equipment and shares in the revenues from monthly service fees and per minute usage. We believe such a strategy is very innovative and likely to prove highly successful. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 28 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The current cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 11/29/06. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.