ATS Corporation Announces Financial Results for the First Quarter Ended March 31, 2009

* Q1 Revenue of $27.2 million
* Q1 EBITDA of $2.5 million or 9.1%
* Strong cash flow from operations of $5.2 million in Q1 and total debt of $31.6
million as of March 31, 2009, down $5.6 million from $37.2 million of total debt
as of December 31, 2008.

MCLEAN, Va.--(Business Wire)--
ATS Corporation ("ATSC" or the "Company") (OTCBB:ATCT), a leading information
technology company that delivers innovative technology solutions to government
and commercial organizations, today announced operating results for the first
quarter ended March 31, 2009.

First Quarter Results

ATSC reported revenue of $27.2 million for the first quarter of 2009. Revenue
for the first quarter decreased by 22.1% over first quarter FY08 revenue of
$34.9 million. Revenue from commercial contracts decreased $3.8 million to $4.5
million, or 45.8%. Revenue from the civilian and defense divisions decreased
$3.9 million to $22.7 million, or 14.7%.

Operating income for the quarter was $1.7 million and the net income for the
quarter was $426,000 or $0.02 per diluted share, increased from operating income
of $1.1 million and net income of $275,000 for the first quarter of 2008. EBITDA
(1) was $2.5 million for the quarter, resulting in an EBITDA margin of 9.1%
compared to $3.2 million or 9.3% for the first quarter of 2008.

Backlog as of March 31, 2009 was approximately $179.2 million of which $55.9
million was funded. Days sales outstanding ("DSO") were 79 at the end of the
first quarter of fiscal year 2009.

As of March 31, 2009, ATSC`s balance sheet included $27.7 million on its
revolving credit facility and approximately $3.9 million in promissory notes
related to the acquisitions of Potomac Management Group, Inc. and Number Six
Software, Inc. Additionally, the balance sheet included $46.6 million in
stockholders` equity.

First Quarter Highlights and Management Comments

First quarter new bookings totaled $28.0 million, including awards from the
Defense Security Service and the Federal Election Commission.

ATSC President and Chief Executive Officer Dr. Edward H. Bersoff commented, "We
are pleased to continue our track record of delivering strong margins and using
our cash flow from operations to pay down our debt by another 15% this past
quarter. We are, however, still faced with weakness in revenue, primarily in our
commercial business areas. Particularly this quarter, we experienced a
temporary, but significant downturn in our Fannie Mae business as they
reorganized to operate under government conservatorship. Since the end of the
first quarter, we`ve seen our Fannie Mae business pick back up and expect it to
continue to perform for the rest of the year at levels comparable to last year.
Additionally we reported a downturn in our government business areas in the
first quarter, which was primarily driven by our role on one of our large Coast
Guard contracts shifting from a prime to subcontractor role."

"We remain optimistic that we will experience revenue growth in subsequent
quarters for the remainder of the year and allow us to make up for some of the
shortfalls we experienced in the first quarter," Bersoff continued. "For
example, we recently announced the award of a prime position on the General
Services Administration`s ("GSA") Alliant Government Wide Acquisition Contract.
Alliant is an indefinite delivery/indefinite quantity ("IDIQ") contract with a
ceiling value of $50 billion over a five-year base period with one five-year
option period. We look forward to offering this new contract as an attractive
vehicle to our current and new customers, and it becoming a strong avenue of
growth for us."

ATSC Executive Vice President and Chief Financial Officer Pamela Little further
commented on the financial performance, "We continue to take the necessary
actions to maintain attractive margins as we experience challenges with
achieving revenue growth. In addition to delivering strong profitability, we
have also been able to further increase cash flow from operations by improving
accounts receivable collections, resulting in a drop to our DSO from 86 at
December 31, 2008 to 79 by the end of the first quarter of 2009. We expect our
DSO to continue to improve over the course of 2009."

Conference Call

ATSC will conduct a first quarter conference call on Monday, May 11, 2008 at
5:00 p.m. EDT. The dial-in number for the live teleconference is 866-793-1343,
conference ID # 1358977. For international participants, please call into
011-800-4040-2020 and use the same conference ID #. A recorded replay of the
teleconference will also be available on the Company website (www.atsc.com) for
one year from the conference call date.

About ATS Corporation

ATSC is a leading provider of software and systems development, systems
integration, infrastructure management and outsourcing, information sharing and
consulting to the Department of Defense, Federal civilian agencies, public
safety and national security customers, as well as commercial enterprises.
Headquartered in McLean, Virginia, the Company has more than 600 employees at 12
locations across the country.

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 16, 2009. In addition, the forward-looking
statements included in this press release represent our views as of May 11,
2009. 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 11, 2009.

Additional information about ATSC may be found at www.atsc.com.

(1) EBITDA is a
non-GAAP
measure that
is defined as
GAAP net
income plus
other
expense,
interest
expense,
income taxes,
and
depreciation
and
amortization.
We have
provided
EBITDA
because we
believe it is
a commonly
used measure
of financial
performance
in comparable
companies and
is provided
to help
investors
evaluate
companies on
a consistent
basis, as
well as to
enhance an
understanding
of our
operating
results.
EBITDA is not
a recognized
term under
U.S. GAAP and
does not
purport to be
an
alternative
to net income
as a measure
of operating
performance
or the cash
flows from
operating
activities as
a measure of
liquidity.
Please refer
to the table
at the bottom
of the
statement of
operations in
this release
that
reconciles
GAAP net
income to
EBITDA.

ATS Corporation
Consolidated Statement of Operations

Three Months
Ended March 31,
2009 2008
(unaudited) (unaudited)

Revenue $ 27,156,514 $ 34,873,525

Operating costs and expenses
Direct costs 18,195,737 22,268,641
Selling, general and administrative expenses 6,492,515 9,449,681
Depreciation and amortization 784,127 2,042,608
Total operating costs and expenses 25,472,379 33,760,930

Operating income 1,684,135 1,112,595

Other (expense) income
Interest, net (774,080 ) (804,407 )
Other income - 70,877

Income before income taxes 910,055 379,065

Income tax expense 484,466 104,036

Net income $ 425,589 $ 275,029

Weighted average number of shares outstanding
-basic 22,542,200 19,242,698
-diluted 22,542,200 19,242,698

Net income per share
-basic $ 0.02 $ 0.01
-diluted $ 0.02 $ 0.01

Reconciliation of GAAP Net Income to EBITDA (1)
Three Months
Ended March 31,
2009 2008
(unaudited) (unaudited)

Net Income $ 425,589 $ 275,029

Adjustments
Depreciation and amortization 784,127 2,042,608
Interest 774,080 804,407
Taxes 484,466 104,036
EBITDA (1) 2,468,262 3,226,080

ATS Corporation
Consolidated Balance Sheets

March 31, December 31,
2009 2008
(unaudited) (audited)
ASSETS
Current assets
Cash $ 43,713 $ 364,822
Accounts receivable, net 23,503,582 29,268,647
Prepaid expenses 632,619 537,974
Income taxes receivable, net 42,244 -
Other current assets 2,603 22,771
Deferred income taxes, current 1,093,822 1,321,890
Total current assets 25,318,583 31,516,104

Property and equipment, net 3,561,355 3,712,340
Goodwill 59,128,648 59,128,648
Intangible assets, net 7,754,383 8,304,686
Restricted cash 1,320,361 1,316,530
Other assets 359,725 387,897
Deferred income taxes 2,018,885 2,003,348

Total assets $ 99,461,940 $ 106,369,553
LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Current portion of long-term debt $ 2,583,333 $ 2,583,333
Capital leases - current portion 65,899 86,334
Accounts payable and accrued expenses 8,162,937 10,224,266
Accrued salaries and related taxes 2,909,640 2,999,576
Accrued vacation 2,452,113 2,220,865
Income taxes payable, net - 600,121
Deferred revenue 2,319,089 1,745,352
Deferred rent - current portion 382,507 379,520
Total current liabilities 18,875,518 20,839,367

Long-term debt - net of current portion 28,996,796 34,492,558
Capital leases - net of current portion 188 745
Deferred rent - net of current portion 2,793,850 2,842,171
Other long-term liabilities (at fair value) 2,166,566 2,283,256

Total liabilities 52,832,918 60,458,097

Shareholders` equity:
Preferred stock $.001 par value, 1,000,000 shares authorized, and no shares - -
issued and outstanding
Common stock $.001 par value, 100,000,000 shares authorized, 30,724,615 and 3,093 3,087
27,529,010 shares issued, respectively
Additional paid-in capital 130,932,218 130,767,038
Treasury stock, at cost, 8,342,755 shares held (30,272,007 ) (30,272,007 )
Accumulated deficit (52,765,233 ) (53,190,822 )
Accumulated other comprehensive loss (net of tax benefit of $338,606 and (1,269,049 ) (1,395,840 )
$260,907, respectively)
Total shareholders` equity 46,629,022 45,911,456

Total liabilities and shareholders` equity $ 99,461,940 $ 106,369,553

ATS Corporation
Consolidated Statement of Cash Flows

Three Months Ended
March 31,
2009 2008
(unaudited) (unaudited)
Cash flows from operating activities
Net income $ 425,589 $ 275,029
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization 781,688 2,042,608
Stock-based compensation 105,219 323,895
Deferred income taxes 274,106 (774,136 )
Deferred rent (45,334 ) (29,626 )
Gain on disposal of equipment - (2,491 )
Provision for bad debt 123,871 164,787

Changes in assets and liabilities, net of adjustments related to other
comprehensive loss:
Accounts receivable 5,641,195 (6,417,644 )
Prepaid expenses and other current assets (94,646 ) 42,962
Restricted cash (3,831 ) (13,716 )
Other assets 48,340 (110,698 )
Accounts payable and other accrued expenses (1,609,749 ) (41,997 )
Accrued salaries and related taxes (89,936 ) (689,891 )
Accrued vacation 231,248 282,216
Accrued interest 13,616 17,283
Income taxes payable and receivable (749,051 ) 919,843
Other current liabilities 163,753 (417,616 )

Net cash provided by (used in) operating activities 5,216,078 (4,429,192 )

Cash flows from investing activities
Purchase of property and equipment (80,400 ) (130,748 )
Proceeds from disposals of equipment - 4,519
Payment on acquired businesses - (18,377 )

Net cash used in investing activities (80,400 ) (144,606 )

Cash flows from financing activities
Borrowings on lines of credit 14,027,500 19,925,444
Payments on lines of credit (18,877,448 ) (15,549,586 )
Payments on notes payable (645,813 ) (795,833 )
Payments on capital leases (20,992 ) (28,229 )
Proceeds from stock issued pursuant to Employee Stock Purchase Plan 59,966 86,013

Net cash (used in) provided by financing activities (5,456,787 ) 3,637,809

Net decrease in cash (321,109 ) (935,989 )

Cash, beginning of period 364,822 1,901,977
Cash, end of period $ 43,713 $ 965,988

Supplemental disclosures:
Cash paid or received during the period for:
Income taxes paid $ 962,600 $ 1,308,333
Income tax refunds 3,189 1,350,000
Interest paid 823,657 821,284
Interest received 7,980 34,160
Non-cash investing and financing activities and adjustment to other
comprehensive loss:
Unrealized other comprehensive loss on interest rate swap, net of tax (71,578 ) (699,192 )

ATS Corporation
Joann O`Connell
Vice President, Investor Relations
(571)-766-2400
or
Media Contact:
Penny Parker
Corporate Communications Manager
(571)-766-2400

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