ATS Corporation Announces Financial Results for the First

MCLEAN, VA -- (MARKET WIRE) -- May 10, 2007 -- ATS Corporation ("ATSC") (OTCBB: ATCT), a leading information technology company that delivers innovative technology solutions to federal, state, and local government organizations, today announced operating results for the first quarter ended March 31, 2007. Prior to the acquisition of Advanced Technology Systems, Inc. on January 16, 2007, ATSC was a blank check company without operating units.

ATSC reported revenue of $23.5 million for the first quarter of 2007. Net loss was $6.8 million or $0.33 per diluted share. This included a loss of $6.9 million on derivative liabilities attributed to our warrants. Because our warrant agreement, until March 14, 2007, was not clear as to whether we were required to net cash settle the warrants if we were unable to deliver common stock to the warrant holders, we were required to mark the warrants to market as liabilities and therefore recognize gains or losses on the increase or decrease in the fair market value of the warrants. Effective March 14, 2007, the warrant agreement was clarified to state that we are not required to net cash settle the instruments if we are unable to deliver shares of common stock to the warrant holders. We are therefore no longer required to mark the warrants to market and the warrants have now been reclassified as stockholders' equity from liabilities.

The other elements of cost impacting earnings for the quarter were $774,000 of amortization of intangibles associated with the ATSI acquisition and $5,000 associated with the RISI acquisition. We expect these amounts to be approximately $930,000 and $15,000, respectively, in future quarters.

We also had a charge of approximately $600,000 associated with stock based compensation during the quarter. This amount was primarily due to stock options that vested during the quarter. We expect the amount of stock based compensation to be approximately $100,000 per quarter going forward.

Business Highlights

ATSC President and Chief Executive Officer Dr. Edward H. Bersoff stated, "I am pleased with all that we have been able to accomplish in the past several months, including the finalization of the acquisition of ATSI on January 16, 2007, and RISI on March 1, 2007; selecting our new independent accounting firm; negotiating our $9 million bridge credit facility while working on putting in place a three-year line of credit; creating a new business development organization; and implementing a company-wide incentive program."

Conference Call

ATSC will conduct a first quarter conference call on Thursday, May 10, at 5:00 p.m. ET. The dial-in number for the live teleconference is 877-715-5282, conference ID # 8778959. Recorded replay of the teleconference will be available beginning May 11 on the company website: www.atsva.com for one year from the conference call and by telephone at 877-519-4471, conference ID # 8778959, beginning at 8:00 p.m. ET on May 10, 2007 through 11:59 p.m. ET on May 24, 2007.

About ATS Corporation and Advanced Technology Systems, Inc.

ATS Corporation (formerly named Federal Services Acquisition Corporation) operates through its subsidiaries, Advanced Technology Systems, Inc., Reliable Integration Services, and Appix, Inc.

Advanced Technology Systems, Inc. ("ATS") is a leading provider of systems integration and application development, IT infrastructure management and strategic IT consulting services to U.S. federal government agencies. Since its founding in 1978, ATS has been recognized for its custom software development and software integration capabilities and its deep domain expertise in federal government financial, human resource and data management systems. ATS has built and implemented over 100 mission-critical systems for clients.

ATS' financial management software expertise assists clients preparing for the government's increased financial accountability standards. ATS' data management systems expertise allows clients to increase efficiency with better human resource and case management tracking capabilities, while also allowing them to organize and track information easily. Additionally, ATS' IT outsourcing capabilities provide ATS with an opportunity to develop long-term value added partnerships with clients that allow end-users and government agencies to focus on core mission priorities, while reducing expenditures on systems management.

In addition, ATSC leverages its IT services, management consulting, and software and systems development solutions expertise into financial institutions, insurance companies and government sponsored enterprises through a wholly owned subsidiary, Appix, Inc. ("Appix"). Appix is one of the largest providers of outsourced professional services at Fannie Mae and currently serves many Fortune 500 financial services and insurance companies. Additional information about Appix may be found at www.appix.com.

Any statements in this press release about future expectations, plans, and prospects for ATSC, including statements about the estimated value of the contract and work to be performed, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: our dependence on our contracts with federal government agencies for the majority of our revenue, our dependence on our GSA schedule contracts and our position as a prime contractor on government-wide acquisition contracts to grow our business, and other factors discussed in our latest annual report on Form 10-K filed with the Securities and Exchange Commission on March 26, 2007. In addition, the forward-looking statements included in this press release represent our views as of May 10, 2007. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to May 10, 2007.

Additional information about ATSC and ATS may be found at www.atsva.com.

ATS Corporation
Consolidated Statements of Operations



                           (Successor)                (Predecessor)

                                              For the period
                     For the       For the        from          For the
                   Three Months  Three Months   November 1,   Three Months
                      Ended         Ended      2006 through      Ended
                     March 31,     March 31,    January 15,    January 31,
                       2007          2006          2007           2006
                   ------------  -------------  ------------  ------------


Revenue            $ 23,477,720  $          --  $ 21,447,600  $ 26,054,341

Operating costs
 and expenses
  Cost of services   16,464,217             --    15,472,700    18,572,701
  Selling, general
   and
   administrative     5,970,982        610,197    12,677,730     6,260,651
  Depreciation and
   amortization         146,827             --       142,575       221,508
  Amortization of
   intangible
   assets               779,335             --            --            --
                   ------------  -------------  ------------  ------------

Total operating
 costs and
 expenses            23,361,361        610,197    28,293,005    25,054,860

Operating income        116,359       (610,197)   (6,845,405)      999,481

Other Income
 (Expense)
  Interest income
   (expense), net       143,451      1,189,712      (108,200)      (50,847)
  Loss on
   derivative
   liabilities
   attributable to
   warrants          (6,930,000)   (10,920,000)           --            --
  Other income              735             --        54,267         7,936
                   ------------  -------------  ------------  ------------

Income (Loss)
 Before Income
 Taxes               (6,669,455)   (10,340,485)   (6,899,338)      956,570

Income Tax
 (Benefit) Expense      102,711        263,560    (2,533,542)      382,188
                   ------------  -------------  ------------  ------------

Income (Loss) from
 Continuing
 Operations          (6,772,166)   (10,604,045)   (4,365,796)      574,382

Loss from
 Discontinued
 Operations, net
 of income tax
 benefits of
 $252,252                    --             --            --      (378,377)
                   ------------  -------------  ------------  ------------

Net Income (Loss)  $ (6,772,166) $ (10,604,045) $ (4,365,796) $    196,005
                   ------------  -------------  ------------  ------------

Interest income
 attributable to
 common stock
 subject to
 possible
 redemption (net of
 taxes of $0 and
 $106,135
 respectively)               --       (129,093)           --            --
                   ------------  -------------  ------------  ------------

Net income  (loss)
 allocable to
 common
 stockholders not
 subject to
 possible
 redemption        $ (6,772,166) $ (10,733,138) $ (4,365,796) $    196,005
                   ============  =============  ============  ============

Weighted average
 number of shares
 outstanding
  -basic             20,307,248     26,250,000    19,022,500    19,023,400
                   ============  =============  ============  ============
  -diluted           20,307,248     26,250,000    19,022,500    19,400,587
                   ============  =============  ============  ============

Weighted average
 shares
 outstanding
 exclusive of
 shares
 subject to
 possible
 redemption
  -basic             20,307,248     22,052,100    19,022,500    19,023,400
                   ============  =============  ============  ============
  -diluted           20,307,248     22,052,100    19,022,500    19,400,587
                   ============  =============  ============  ============

Basic net income
 (loss) per share
-Continuing
 operations        $      (0.33) $       (0.40) $      (0.23) $       0.03
-Discontinued
 operations        $          -  $           -  $          -  $      (0.02)
                   ============  =============  ============  ============
Net income         $      (0.33) $       (0.40) $      (0.23) $       0.01
-Net income not
 subject to
 possible
 redemption        $      (0.33) $       (0.49) $      (0.23) $       0.01

Diluted net income
 (loss) per share
-Continuing
 operations        $      (0.33) $       (0.40) $      (0.23) $       0.03
-Discontinued
 operations        $          -  $           -  $          -  $      (0.02)
                   ============  =============  ============  ============
Net income         $      (0.33) $       (0.40) $      (0.23) $       0.01
-Net income not
 subject to
 possible
 redemption        $      (0.33) $       (0.49) $      (0.23) $       0.01



ATS Corporation
Consolidated Balance Sheets


                              (Successor)               (Predecessor)
                         March 31,   December 31, January 15,  October 31,
                            2007         2006         2007         2006
                        (unaudited)   (audited)   (unaudited)   (audited)
                        ============ ============ ============ ============
Assets

Current Assets
 Cash                   $  1,728,046 $    213,395  $    28,040 $    718,571
 Accounts receivable,
  net                     23,115,274           --   21,260,609   20,495,315
 Prepaid expenses and
  other current assets       593,243      136,006      525,032      632,948
 Income tax receivable       781,278           --    2,524,113    1,483,728
 Other current assets      3,525,605           --           --           --
 Assets held for sale             --           --           --      231,861
 Deferred income taxes,
  current                  1,316,803           --           --           --
                        ============ ============ ============ ============

Total Current Assets      31,060,249      349,401   24,337,794   23,562,423

Short term investments
 held in trust account            --  121,024,475           --           --

Restricted cash            1,230,681           --    1,217,782    1,204,710

Cash and cash
 equivalents held in
 Trust fund                       --        1,332           --           --

Property and equipment,
 net                       1,413,442           --    1,466,108    1,352,736

Goodwill                  64,760,564           --    3,171,886    3,171,886

Intangible assets, net    16,520,665           --           --           --

Deferred acquisition
 costs                            --    1,361,215           --           --

Other assets                  53,248           --      325,043      328,678

Deferred income tax
 benefit                          --      502,744      239,113           --
                        ============ ============ ============ ============

Total Assets            $115,038,849 $123,239,167 $ 30,757,726 $ 29,620,433
                        ============ ============ ============ ============



ATS Corporation
Consolidated Balance Sheets--Continued


                              (Successor)               (Predecessor)
                         March 31,   December 31, January 15,  October 31,
                           2007          2006         2007         2006
                       (unaudited)    (audited)   (unaudited)   (audited)
                       ============  ============ ===========  ===========


Liabilities and
 Stockholders’ Equity

Current Liabilities
 Line-of-credit        $         --  $         -- $ 9,964,955  $ 6,930,000
 Capital
  leases-current
  portion                    87,385            --      61,015       78,999
 Accounts payable and
  accrued expenses        7,478,648       942,146   6,645,529    7,884,056
 Accrued salaries and
  related taxes           3,886,284            --   8,706,116    3,620,113
 Accrued vacation         2,573,676            --   2,284,566    2,302,812
 Income taxes payable            --       310,606          --           --
 Warrant liabilities             --    13,860,000          --           --
 Other current
  liabilities               464,214            --     386,992      387,698
 Current liabilities
  of discontinued
  operations                     --            --          --       35,422
 Deferred income
  taxes-current
  portion                        --        40,489     889,783      803,258
                       ============  ============ ===========  ===========

Total Current
 Liabilities             14,490,207    15,153,241  28,938,956   22,042,358

Notes payable                86,857            --          --           --

Capital leases-net of
 current portion            141,531            --     181,104      181,174

Other long-term
 liabilities                446,801            --     560,022      625,546

Deferred income
 taxes-net of current
 portion                  6,241,032            --          --    1,327,915
                       ============  ============ ===========  ===========

Total Liabilities        21,406,428    15,153,241  29,680,082   24,176,993

Common stock, subject
 to possible
 redemption 4,197,900
 shares                          --    23,424,282          --           --

Interest income
 attributable to
 common stock subject
 to possible
redemption (net of
 taxes of $0 and
 $561,204,
 respectively)                   --       702,752          --           --

                       ------------  ------------ -----------  -----------
Total common stock,
 subject to possible
 redemption                      --    24,127,034          --           --
                       ------------  ------------ -----------  -----------

Commitments and
 Contingencies                   --            --          --           --

Stockholders’ Equity
 Preferred stock-
  $.0001 par value;
  1,000,000 shares
  authorized;
  no shares issued or
  outstanding                    --            --          --           --
 Preferred stock;
  non-voting, no par
  value; 50,000,000
  shares
  authorized; no
  shares issued or
  outstanding                    --            --          --           --
 Common stock-- $.0001
  par value,
  100,000,000 shares
  authorized;
  26,470,209 and
  26,250,000 issued;
  18,127,454 and
  26,250,000
  outstanding,
  respectively (which
  includes 0 and
  4,197,900
  shares subject to
  possible redemption,
  respectively                2,647         2,625          --           --
 Common stock; Class A
  voting, no par
  value; 75,000,000
  shares authorized;
  9,219,700 issued;
  9,023,400
  outstanding -
  predecessor                    --            --      34,768       34,768
 Common stock; Class B
  voting, no par
  value; 75,000,000
  shares authorized;
  10,000,000 issued
  and outstanding                --            --       1,736        1,736
 Additional paid-in
  capital               127,482,626    81,467,698          --           --
 Treasury stock, at
  cost 8,342,755 and 0
  shares (sucessor);
  197,200 and 196,300
  shares
  (predecessor)         (30,272,007)           --     (37,358)     (37,358)
 Retained earnings
  (defecit)              (3,580,845)    2,488,569   1,078,498    5,444,294
                       ============  ============ ===========  ===========

Total Stockholders’
 Equity                  93,632,421    83,958,892   1,077,644    5,443,440
                       ============  ============ ===========  ===========

Total Liabilities and
 Stockholders’ Equity  $115,038,849  $123,239,167 $30,757,726  $29,620,433
                       ============  ============ ===========  ===========



ATS Corporation
Consolidated Statements of Cash Flows



                           (Successor)                (Predecessor)

                     For the       For the     For the period   For the
                   Three Months  Three Months  from November  Three Months
                      Ended         Ended     1, 2006 through     Ended
                     March 31,     March 31,    January 15,    January 31,
                       2007          2006          2007           2006
                   ------------  -------------  ------------  ------------

Cash Flows from
 Operating Activities
 Net income (loss) $ (6,772,166) $ (10,604,045) $ (4,365,796)      196,005
 Adjustments to
   reconcile net
   income (loss) to
   net cash (used in)
   provided by
    operating
    activities:
   Depreciation and
    amortization          113,234             --       142,575     221,508
   Amortization of
    intangibles           779,335             --            --          --
   Deferred income
    taxes              (1,947,134)      (250,436)   (1,480,503)         --
   Loss on disposal
    of equipment               --             --        45,040      58,233
   Bad debt                    --             --            --      85,000
   Stock-based
    compensation          600,670             --     1,870,000       9,000
 Interest on notes
  payable                   1,354             --            --          --
   Loss on derivative
    liabilities
    attrituable to
    warrants            6,930,000     10,920,000            --          --
   Changes in assets
    and liabilities,
    net of effects of
    acquisitions:
    Accounts
     receivable        (1,519,877)            --      (533,433) (1,378,747)
    Interest
     receivable                --        (20,477)           --          --
    Prepaid expenses      (60,601)        25,314       107,916      34,108
    Other current
     assets            (3,525,605)            --            --          --
    Income taxes
     payable
     (receivable)       1,432,229         71,111    (1,040,385) (1,000,180)
    Other assets          284,248             --         3,635     (21,982)
    Accounts payable
     and accrued
     expenses            (252,705)       391,230    (1,238,527) (1,743,508)
    Accrued salaries
     and related
     taxes             (5,033,944)            --     3,202,024    (800,854)
    Accrued vacation      285,065             --       (39,689)    (94,629)
    Other current
     liabilities          (47,222)            --       (66,230)    (77,164)
    Other long-term
     liabilities         (113,221)            --            --          --
                     ------------  -------------  ------------  ----------
Net Cash (Used in)
 Provided by
 Operating
 Activities            (8,846,340)       532,697    (3,393,373) (4,513,210)
                     ------------  -------------  ------------  ----------

Cash Flows from
 Investing
 Activities
  Purchase of
   property and
   equipment              (10,308)            --      (300,987)    (71,256)
  Sale of U.S.
   government
   securities held in
   Trust fund         121,024,475             --            --          --
  Purchase of U.S.
   government
   securities held in
   Trust fund                  --   (118,220,220)           --          --
  Maturuties of U.S.
   government
   securities held in
   Trust fund                  --    117,669,592            --          --
  Purchase of
   Advanced
   Technology Systems
   Incorporated, net
   of cash received   (79,355,621)            --            --          --
  Purchase of
   Reliable
   Integration
   Services, Inc.,
   net of cash
   received            (1,000,778)            --            --          --
  Release (deposit)
   of cash held in
   Trust Fund               1,332       (170,738)           --          --
  Restricted cash         (12,899)            --       (13,072)         --
                     ------------  -------------  ------------  ----------

Net Cash Provided by
 (Used in) Investing
 Activities             40,646,201       (721,366)     (314,059)
(71,256)
                     ------------  -------------  ------------  ----------

Cash Flows from
 Financing
 Activities
  Net borrowings on
   line-of-credit              --             --     3,034,955   3,398,702
  Payments on notes
   payable                     --             --            --    (166,470)
  Payments on capital
   leases                 (13,203)            --       (18,054)    (14,521)
  Repurchase of
   common stock       (30,272,007)            --            --          --
                     ------------  -------------  ------------  ----------

Net Cash (Used in)
 Provided by
 Financing
 Activities           (30,285,210)            --     3,016,901   3,217,711
                     ------------  -------------  ------------  ----------

Net Increase
 (Decrease) in Cash     1,514,651       (188,669)     (690,531) (1,366,755)

Cash, beginning of
 period                   213,395      1,855,394       718,571   1,366,755
                     ------------  -------------  ------------  ----------

Cash, end of period  $  1,728,046  $   1,666,725  $     28,040          --
                     ------------  -------------  ------------  ----------

Contact Information: Company Contact: Dr. Edward H. Bersoff Chairman, President and Chief Executive Officer ATS Corporation (703) 506-0088 Investor Relations Contact: Laura Kowalcyk Investor Relations CJP Communications for ATS Corporation (212) 279-3115 ext. 209 Email Contact: Email Contact

ATS Corporation Announces Financial Results for the First Quarter Ended March 31, 2007