ATC Presents Newest Loudspeaker Innovations, Outlines Progress With OEMs At Open House Event.

Business Editors/High-Tech Writers

CES 2001

Booth No. 288

SAN DIEGO--(BUSINESS WIRE)--Dec. 13, 2000

American Technology Corp. (Nasdaq:ATCO) a licensor of innovative new sound technologies, welcomed shareholders and other guests to its facilities for an Open House and speaker demonstration last night.

Company representatives gave tours of the facility and the evening was highlighted by live demonstrations of HyperSonic(TM) Sound, Stratified Field(TM) Technology, NeoPlanar(TM) Technology (formerly known as Planar Magnetic(TM)), and PureBass(TM) sub-woofer technology.

Terry Conrad, president of ATC, stated, "We have made significant progress over the last several months with current and potential customers. Our current customers include HST, Thomson Multimedia (best known in the United States for its RCA brand), eSoundIdeas (formerly known as SOUNDIDEAS), and Authentic of Japan, a wholly-owned subsidiary of NEC. Based on our negotiations with several of the world's largest consumer electronics companies and manufacturers, we expect the list of licensees and the associated licensing and royalty revenues to the company to continue growing.

"Commercialization of our new audio technologies is getting closer and tooling is already under way for various levels of SFT(TM) and HSS(TM) production. We are working with manufacturers, vendors, and licensees to allow our customers access to a network of qualified, licensed commercial production facilities. We expect availability of OEM-branded products containing our technology in 2001.

"Among the markets for our technologies are home theater, executive or bookshelf audio systems, military applications, consumer electronics, PC or multimedia, special events venues, and automotive stereo. We are working with a number of customers in these industries and are extremely pleased with the prospects for large-quantity commercial applications for our directional speaker, thin-panel loudspeaker, and subwoofer technologies. In particular, HSS developers' kits have already been delivered to key customers, with deliveries continuing based upon high demand. We are in close contact with SFT customers, taking feedback and continuing to shape speakers to meet a wide variety of needs as they are evaluated and developed for introduction into their consumer product lines."

Elwood G. ("Woody") Norris, chief executive officer, added, "I am always happy to demonstrate our latest audio innovations. At the recent SPAWAR Symposium, we had the opportunity to meet with well-known military communications companies to show them our HSS technology. Several have maintained contact after the Symposium, visited our facilities, and we are cultivating long-term business relationships born at that event. The interest level in all our audio technologies is extremely encouraging.

"This Open House was a good opportunity to debut our new laboratory and demonstration facilities, and keep our shareholders and the audio community up to date on our audio technologies as we prepare for important meetings at CES (the 2001 International Consumer Electronics Show in Las Vegas, January 6-9)."

The company also demonstrated the latest additions to its FM Sounds(TM) radio product line. New sports-themed radio products and ultra-miniature cell-phone-accessory radios were featured. The company plans to highlight these and other retail radio products to retailers and dealers on the CES show floor, Booth No. 288 in the Las Vegas Convention Center's South Hall.

Tom Johnston, national sales manager of ATC's Radio Products Division, stated, "Our cell-phone-compatible models allow users to take calls hands-free for maximum convenience and safety. Better still, in between calls they can tune in their favorite FM radio station on the ultra-miniature radio built into the earphone wire. We expect these models to be our hottest-selling products of 2001."

About American Technology Corp.

American Technology is shaping the future of sound by developing and licensing its patented and patents-pending technology portfolio which includes: the award-winning HSS(TM) (HyperSonic(TM) Sound Technology); SFT(TM) (Stratified Field(TM) Technology); NeoPlanar(TM); MFW(TM) (Magnified Force(TM) Woofer); PureBass(TM) Sub-Woofer Technology; and FM Sounds(TM) consumer radio products. For more information on the company and its technologies and products please visit our Web site at www.atcsd.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained here, the matters discussed in this news release contain forward-looking statements which involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.