AM ear radio a technical marvel; world's smallest radio outperforms expensive portable radios; improved AM ear radio targeted for talk and sports radio.

SAN DIEGO--(BUSINESS WIRE)--March 12, 1996--American Technology Corp. (OTC Bulletin Board:ATCO), creator of the highly successful patented FM Sounds ear radio announced Tuesday a technical innovation in AM radio design.

ATC's patented AM Sounds ear radio achieves superior sensitivity, high-quality reception and extended battery life, all in a mini-sized half-ounce package fitting attractively and comfortably in one ear.

Elwood G. Norris, chairman, stated: "With the completion of beta testing on AM Sounds incorporating our most recent improvements, we have a patented radio with approximately 100 microvolt sensitivity. Translated to common terms, this means that our radio picks up stations that other pocket and portables might miss altogether. We are pleased to have achieved this remarkable innovation while maintaining excellent fidelity and extended battery life."

Robert Putnam, president, added: "We expect the response to our AM Sounds radio to surpass that of our highly successful FM Sounds digital scanning radio which is sold in the U.S. and in over 20 countries around the world. Our miniature ear radios are simple to operate ... just turn on and insert in the ear. No earphones, wires and no searching for a pocket or clip location for a bulky receiver. While fitting comfortably in the ear one can listen to a favorite talk or sports program, leaving the other ear open to conversation, room sounds, traffic, etc.

"Customers find our miniature radios ideal for many activities including walking, jogging, biking, golfing, shopping or just plain lounging, whether at home, work, school, a favorite sporting event, or in between, our ear radios never miss a beat. No more staying at home or sitting in the car until your favorite radio program is finished; just lend us your ear, stick it in and go. AM Sounds is a perfect and unique gift for the tuned-in AM listener."

AM Sounds is expected to retail for $29.95 and is scheduled to be widely available this summer. FM Sounds is already available at a growing list of retailers throughout the country and can be ordered through the company's order line, 800/41-RADIO (orders or radio inquiries only).

AM Sounds and FM Sounds also make unique corporate promotional items, ideal as a customer gift or employee award. In quantity, each radio can be customized with corporate or team logos, radio station frequencies, call letters, or product and service brands.

American Technology Corp. is a San Diego-based electronics company specializing in the development, manufacture, and marketing of leading-edge proprietary electronic products and technologies. For more information on the company and its products, visit www.atcsd.com.

CONTACT: American Technology Corp., San Diego 

Robert Putnam, 619/679-2114